The opening meeting of the third session of the 14th National People's Congress (NPC) took place at the Great Hall of the People in Beijing on March 5, 2025. This event showcased China's commitment to economic stability and growth as it laid out an ambitious plan for the year ahead.

Chinese Premier Li Qiang presented a government work report that highlighted China's impressive economic performance in 2024 and detailed objectives for 2025.

In 2024, China's economy demonstrated resilience, achieving a GDP growth rate of 5 percent and reaching a historical peak of approximately 130 trillion Chinese yuan (equivalent to about $17.82 trillion).

This positioned China among the world's fastest-growing major economies, contributing around 30 percent to global economic growth.

For 2025, the growth target has been set at approximately 5 percent, reflecting confidence in sustaining this progress despite potential global risks.

A notable strategy involves increasing the deficit-to-GDP ratio from 3 percent to 4 percent, indicating an expansionary fiscal policy aimed at bolstering economic development.

The government plans to issue 4.4 trillion yuan in local government special-purpose bonds, a rise of 500 billion yuan from the previous year, to focus on infrastructure investment.

Additionally, 1.3 trillion yuan in ultra-long special treasury bonds will support strategic projects.

Monetary policy will also play a significant role, with planned targeted reductions in interest rates designed to stimulate borrowing and investment.

These initiatives are intended to enhance market liquidity, ensuring that businesses can access the capital necessary for growth and innovation.

China's emphasis on infrastructure development continues to be a central pillar of its 2025 economic plan.

The government's commitment to transportation, energy, and urbanization projects is expected to drive both immediate economic growth and long-term prosperity.

Data from 2024 indicates that high-tech manufacturing output grew by 8.9 percent, and new energy vehicle production totaled 13 million units, reflecting China’s leadership in the green transportation sector.

For 2025, goals include accelerating advancements in artificial intelligence, semiconductors, and renewable energy technologies.

The effort to attract foreign investment remains a priority, as evidenced by the easing of restrictions in manufacturing in 2024. China's Belt and Road Initiative continues to facilitate trade and investment relationships globally.

Furthermore, the government plans to maintain a focus on employment and price stability, with an urban unemployment target of approximately 5.5 percent and a consumer price index (CPI) growth expectation of around 2 percent.

The goal of creating over 12 million urban jobs reflects the importance of stimulating the labor market through infrastructure and industrial expansion.

Inflation management is critical to prevent consumer purchasing power erosion.

Keeping the CPI below 2 percent is vital for sustaining domestic consumption, a primary driver of China's economy.

In the real estate sector, localized policies will regulate transactions to stabilize markets, while the issuance of treasury bonds will bolster state-owned banks’ capital, enhancing financial stability.

China's economic strategy for 2025 has attracted significant attention from global financial markets.

The World Bank has raised its growth forecast for China to 4.5 percent, aligning closely with the government’s target.

The ability to achieve or exceed these projections is contingent upon managing various global risks, including geopolitical tensions and supply chain disruptions.

The setup appears to position China strategically for continued influence and growth on the world stage.