China unveils key economic targets and policies in 2025 government work report

The Chinese government has outlined its major economic goals and policy directions for 2025 in a work report submitted Wednesday to the national legislature for deliberation.

China has set its economic growth target at around 5 percent and an annual increase in the consumer price index of around 2 percent in 2025.  

The country will issue a total of 1.3 trillion yuan (about 182 billion U.S. dollars) in ultra-long special treasury bonds, marking an increase of 300 billion yuan from last year.

China’s new government debt will total 11.86 trillion yuan in 2025, up by 2.9 trillion yuan compared to the previous year, which will facilitate a significantly higher level of fiscal spending, according to the work report.

Additionally, China plans to issue 4.4 trillion yuan in local government special-purpose bonds in 2025, reflecting an increase of 500 billion yuan from last year.

To further stimulate the economy, China will implement monetary policy adjustments, including cutting required reserve ratios and interest rates when appropriate. The government will also issue 500 billion yuan in special treasury bonds to support large state-owned commercial banks in replenishing capital.

Structural monetary policy instruments will be refined and expanded to provide stronger support for the real estate sector and the stock market. China will launch special initiatives to boost consumption, including the issuance of 300 billion yuan in ultra-long special treasury bonds to support consumer goods trade-in programs.

The country aims to advance integrated and clustered development of strategic emerging industries while fostering new and future industries. Furthermore, it will deepen comprehensive reforms in investment and financing within the capital market, encouraging the entry of long- and medium-term capital.

The report emphasizes China’s commitment to promoting the well-regulated development of the platform economy, leveraging its role in driving innovation, expanding consumption, and stabilizing employment. It also highlights support for the growth of unicorn and gazelle companies in 2025.

To ensure financial security, China will enhance contingency plans to effectively manage external shocks, safeguarding the stability of its financial system. The report underscores the government’s efforts to encourage private investment, guiding more capital toward major infrastructure and public welfare projects.

China has set the surveyed urban unemployment rate at around 5.5 percent for 2025, which is necessary for providing more support to stabilize employment, the report stated.

Source: ECNS
--Agencies