Navigating Economic Challenges, Embracing Tech, and Tackling Debt

Key Takeaways

China set an economic growth target of "around 5%" for 2025, in line with the past two years.

The government acknowledged a looming trade war with the United States and its potential impact on growth.

Addressing "inadequate domestic demand" and making it the "main engine" of economic growth was a major priority.

Measures to boost consumption included raising the fiscal deficit ratio and issuing special treasury bonds.

Achieving technological self-reliance was highlighted as a key aim, particularly in developing "core technology in key fields."

Expanding the development and use of AI in smart manufacturing, new-energy vehicles, and robotics was emphasized.

The government pledged to "stem the downturn and restore stability in the real estate market."

Lifting property transaction restrictions and leveraging real estate financing were mentioned as strategies.

The central government committed to addressing mounting local government debt, especially "hidden debts."

China announced a 7.2% rise in its defense budget, maintaining its stance of measured spending.

The government reiterated its ambition to "resolve the Taiwan question" and oppose separatist activities and external interference.

Overall, the 2025 NPC work report highlighted China's focus on navigating economic challenges, achieving technological self-reliance, stabilizing the property market, managing local government debt, and asserting its territorial claims.