China’s National People’s Congress session prioritized economic stabilization with a 2025 growth target of 5%. Key issues addressed include boosting domestic consumption, tackling local government debt, and increasing the defense budget. The government also emphasized the development of artificial intelligence and technological self-reliance, alongside its firm stances on the property market and Taiwan.

China commenced its annual parliamentary session, the National People’s Congress (NPC), with significant emphasis on economic stability. The government maintained its GDP growth target of “around 5%” for 2025, stressing the importance of addressing the sluggish economy and implementing broader artificial intelligence initiatives. Premier Li Qiang outlined key focus areas, including the declining property market and rising government debt, which hinder economic progress.

The NPC report highlighted that China’s economy grew by 5% in the previous year, bolstered by exports and stimulus measures. However, forecasts from the International Monetary Fund predict a slowdown to approximately 4.6% growth for the current year. The existing trade tensions with the United States pose substantial risks, with potential tariff impacts that could diminish growth by as much as 1.1 percent, according to Maybank Investment Banking Group.

A primary objective stated by Premier Li is to boost domestic consumption amid hesitancy from consumers due to the stagnant property market. As a response, the government plans to increase the fiscal deficit to 4% and will introduce ultra-long treasury bonds worth 300 billion yuan ($41.3 billion) to fund consumer initiatives.

Technological self-reliance is another key priority for China, particularly in light of restricted access to advanced technologies, such as semiconductors from the U.S. The government aims to enhance research and development of core technologies and significantly advance the deployment of artificial intelligence in sectors like smart manufacturing and robotics.

Moreover, Premier Li committed to reviving the property market by easing transaction restrictions and bolstering financing for housing projects, while also addressing the increasing local government debt and its implications.

The defense budget received a 7.2% increase this year, consistent with last year’s growth rate, maintaining its position under 1.5% of GDP. Additionally, the NPC reiterated its stance on Taiwan, expressing the ambition to resolve what it terms the “Taiwan question” while opposing any independence efforts or external interferences regarding Taiwan.

The National People’s Congress session underscores China’s resolve to stabilize its economy by maintaining a growth target of around 5% and addressing key issues such as domestic consumption, technological self-reliance, and local government debt. The government’s commitment to boosting the defense budget and asserting its position on Taiwan reveals its broader geopolitical strategy. Overall, these initiatives reflect China’s intent to navigate through external and internal challenges while seeking sustained economic growth.

Original Source: apnews.com

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