At the Annual Two Sessions Conference, Premier Li Qiang announced China’s economic growth target of around 5% for 2025, acknowledging the challenges ahead, Li said “Achieving this year’s targets will not be easy, and we must make arduous efforts to meet them”. Considering the challenges posed by global uncertainties and weak domestic sentiment, he emphasized the need for bold measures to stabilize the economy, stimulate domestic consumption, and support key industries.
Noting that 2025 is the final year for implementing the 14th Five-Year Plan (2021-2025), Li said China targets economic growth of around 5 percent this year. China as the world’s second largest economy, achieved an economic growth rate of 5% in 2024 along with other growth measures which makes this year’s growth target very realistic.
Li also announced a 7.2% increase in the county’s defense budget, bringing it to approximately 1.784 trillion yuan ($249 billion), citing the need to strengthen military preparedness amid a “severe external environment.” The report also outlines an array of other key development goals for this year, including maintaining a surveyed urban unemployment rate of around 5.5%, creating over 12 million new urban jobs and increasing the consumer price index by about 2%.
Additionally, he highlighted China’s commitment to technological advancements through innovation-driven development, advance tech self-reliance and accelerating major science projects. This year’s government work report states that china will promote emerging industries such as commercial spaceflight and low-altitude economy, while also cultivating industries of the future including bio manufacturing, quantum technology, embodied AI and 6G technology.
On environmental policy, the government reaffirmed its pledge to transition to a low-carbon economy, with renewable energy now accounting for over 35% of the nation’s total power generation. Meanwhile, efforts to boost the private sector were underscored, with plans to improve market access and fast-track policies aimed at fostering business confidence.
The government work report reflects China’s strategy to balance economic growth, innovation, sustainability, and national security as it navigates an increasingly complex global landscape.
