China's assurances of stable economic expansion by 2025: Crucial elements
China is approaching the Two Sessions period in early March, as the global community anticipates the Chinese government’s announcement of its annual growth target and associated policies in light of a slow global economic recovery and increasing protectionism.
TroibNews 
**Editor's Note:** China is preparing to convene its annual Two Sessions in early March, and in anticipation of these pivotal political meetings, CN is offering a specialized series focused on the country's initiatives to enhance people's livelihoods, foster economic development, drive sci-tech innovation, and promote openness.
As China approaches the Two Sessions, the international community is keenly awaiting the government's announcement of its annual growth target and associated policies against the backdrop of a lagging global economic recovery and increasing protectionism.
On Monday, Chinese President Xi Jinping participated in a symposium geared towards private enterprises, urging private entrepreneurs to bolster their development resolve and confidence to advance healthy and high-quality growth.
He emphasized that China will continue to deepen its opening up across all sectors, underscoring the vast potential of its 1.4 billion-strong market, which presents considerable opportunities for the growth of the private sector.
**Resilience and Adaptability**
Recent official statistics indicate that China's GDP rose by 5 percent year-on-year in 2024, achieving the set annual target. The economy's total GDP reached 130 trillion yuan for the first time, confirming its status as one of the world's fastest-growing major economies.
Michael Borchmann, the former head of the European and International Affairs Department of Hesse in Germany, noted that given the current global economic challenges, it is notable for an economy like China’s, already in a phase of high-quality development, to maintain such growth rates.
"This not only shows that the Chinese economy is extremely resilient and adaptable, but also reflects the steady expansion of domestic demand and the results of industrial transformation," he stated.
The German newspaper Handelsblatt reported positive indicators for the Chinese economy, highlighting that China’s value-added industrial output increased by 6.1 percent year-on-year in 2024, with the production and supply of utilities such as electricity, thermal power, gas, and water seeing a 5.3 percent rise during the same period.
The value-added output for the equipment manufacturing and high-tech sectors outpaced average industrial production in 2024, growing by 7.7 percent and 8.9 percent, respectively. Specifically, high-tech industries such as new energy vehicles, industrial robots, and integrated circuit products—vital to China's economic strategy—exhibited noteworthy growth.
Jacqueline Rong, chief China economist at BNP Paribas, pointed to exports as the most significant positive aspect of the Chinese economy last year.
Data from the General Administration of Customs published in mid-January 2025 showed that China's foreign trade reached 43.85 trillion yuan in 2024, reflecting a 5 percent year-on-year increase. Exports saw a 7.1 percent year-on-year rise to 25.45 trillion yuan, while imports also grew by 2.3 percent to 18.39 trillion yuan.
Bloomberg commented that several provincial-level regions in China have recently set optimistic economic growth targets, with five provinces aiming for growth at or above 5 percent in 2025. Beijing, Shanghai, and Guangdong announced targets of "around 5 percent," while Zhejiang is targeting "around 5.5 percent," and Fujian aims for "5 to 5.5 percent."
These targets were disclosed during provincial-level Two Sessions—annual meetings of regional legislative and political advisory bodies—that typically precede the national Two Sessions and offer insights into the national economic outlook for the final year of the country’s 14th Five-Year Plan.
In response to China's accomplishment of 5 percent growth in 2024, the International Monetary Fund described it as a surprise for the global economy. Both the IMF and the World Bank have recently revised upward their forecasts for China's economic growth in 2025, reflecting an optimistic outlook.
**Policy Impact**
Since last September, China has introduced several measures aimed at economic enhancement, including reductions in market-based benchmark lending rates, cuts to banks' reserve requirement ratios, and a substantial fiscal stimulus package of 10 trillion yuan to mitigate local government debt risks. Additionally, a trade-in program for consumer goods like appliances and vehicles has been expanded to stimulate consumption.
Bloomberg reported that these initiatives have effectively rejuvenated consumer demand in China. In the fourth quarter, total retail sales of consumer goods increased by 3.8 percent year-on-year, marking one of the fastest growth rates of the year.
Consumption has become a crucial engine of China's economic growth in recent years. Last December’s Central Economic Work Conference identified nine economic priorities for 2025, with the foremost being "vigorously boosting consumption, improving investment efficiency, and expanding domestic market demand on all fronts."
Moreover, strong growth in cultural and tourism sectors is anticipated in 2025, spurred by the country’s visa-free policies and various incentives. The ongoing winter tourism surge and the Spring Festival holiday have offered a robust start to the year in these sectors.
According to the National Immigration Administration, during the Spring Festival holiday, China recorded 14.37 million cross-border trips, representing a 6.3 percent increase from the previous year. Approximately one million of these trips were made by foreigners, marking a 22.9 percent year-on-year uptick.
Over the holiday season, sales among key retail and catering enterprises in China climbed by 4.1 percent year-on-year, as reported by the Ministry of Commerce.
The 2025 Spring Festival holiday heralded a new milestone for China's flourishing film industry, with box office revenue hitting a remarkable 9.51 billion yuan between January 28 and February 4, according to the China Film Administration.
Ian Smith for TROIB News
As China approaches the Two Sessions, the international community is keenly awaiting the government's announcement of its annual growth target and associated policies against the backdrop of a lagging global economic recovery and increasing protectionism.
On Monday, Chinese President Xi Jinping participated in a symposium geared towards private enterprises, urging private entrepreneurs to bolster their development resolve and confidence to advance healthy and high-quality growth.
He emphasized that China will continue to deepen its opening up across all sectors, underscoring the vast potential of its 1.4 billion-strong market, which presents considerable opportunities for the growth of the private sector.
**Resilience and Adaptability**
Recent official statistics indicate that China's GDP rose by 5 percent year-on-year in 2024, achieving the set annual target. The economy's total GDP reached 130 trillion yuan for the first time, confirming its status as one of the world's fastest-growing major economies.
Michael Borchmann, the former head of the European and International Affairs Department of Hesse in Germany, noted that given the current global economic challenges, it is notable for an economy like China’s, already in a phase of high-quality development, to maintain such growth rates.
"This not only shows that the Chinese economy is extremely resilient and adaptable, but also reflects the steady expansion of domestic demand and the results of industrial transformation," he stated.
The German newspaper Handelsblatt reported positive indicators for the Chinese economy, highlighting that China’s value-added industrial output increased by 6.1 percent year-on-year in 2024, with the production and supply of utilities such as electricity, thermal power, gas, and water seeing a 5.3 percent rise during the same period.
The value-added output for the equipment manufacturing and high-tech sectors outpaced average industrial production in 2024, growing by 7.7 percent and 8.9 percent, respectively. Specifically, high-tech industries such as new energy vehicles, industrial robots, and integrated circuit products—vital to China's economic strategy—exhibited noteworthy growth.
Jacqueline Rong, chief China economist at BNP Paribas, pointed to exports as the most significant positive aspect of the Chinese economy last year.
Data from the General Administration of Customs published in mid-January 2025 showed that China's foreign trade reached 43.85 trillion yuan in 2024, reflecting a 5 percent year-on-year increase. Exports saw a 7.1 percent year-on-year rise to 25.45 trillion yuan, while imports also grew by 2.3 percent to 18.39 trillion yuan.
Bloomberg commented that several provincial-level regions in China have recently set optimistic economic growth targets, with five provinces aiming for growth at or above 5 percent in 2025. Beijing, Shanghai, and Guangdong announced targets of "around 5 percent," while Zhejiang is targeting "around 5.5 percent," and Fujian aims for "5 to 5.5 percent."
These targets were disclosed during provincial-level Two Sessions—annual meetings of regional legislative and political advisory bodies—that typically precede the national Two Sessions and offer insights into the national economic outlook for the final year of the country’s 14th Five-Year Plan.
In response to China's accomplishment of 5 percent growth in 2024, the International Monetary Fund described it as a surprise for the global economy. Both the IMF and the World Bank have recently revised upward their forecasts for China's economic growth in 2025, reflecting an optimistic outlook.
**Policy Impact**
Since last September, China has introduced several measures aimed at economic enhancement, including reductions in market-based benchmark lending rates, cuts to banks' reserve requirement ratios, and a substantial fiscal stimulus package of 10 trillion yuan to mitigate local government debt risks. Additionally, a trade-in program for consumer goods like appliances and vehicles has been expanded to stimulate consumption.
Bloomberg reported that these initiatives have effectively rejuvenated consumer demand in China. In the fourth quarter, total retail sales of consumer goods increased by 3.8 percent year-on-year, marking one of the fastest growth rates of the year.
Consumption has become a crucial engine of China's economic growth in recent years. Last December’s Central Economic Work Conference identified nine economic priorities for 2025, with the foremost being "vigorously boosting consumption, improving investment efficiency, and expanding domestic market demand on all fronts."
Moreover, strong growth in cultural and tourism sectors is anticipated in 2025, spurred by the country’s visa-free policies and various incentives. The ongoing winter tourism surge and the Spring Festival holiday have offered a robust start to the year in these sectors.
According to the National Immigration Administration, during the Spring Festival holiday, China recorded 14.37 million cross-border trips, representing a 6.3 percent increase from the previous year. Approximately one million of these trips were made by foreigners, marking a 22.9 percent year-on-year uptick.
Over the holiday season, sales among key retail and catering enterprises in China climbed by 4.1 percent year-on-year, as reported by the Ministry of Commerce.
The 2025 Spring Festival holiday heralded a new milestone for China's flourishing film industry, with box office revenue hitting a remarkable 9.51 billion yuan between January 28 and February 4, according to the China Film Administration.
Ian Smith for TROIB News
