China's Economic Resilience: Maintaining Growth Amidst Headwinds

China's decision to maintain its economic growth target at 'around 5%' for 2025, despite looming trade wars and other headwinds, reflects its confidence in navigating the challenges ahead. The country's solid foundation, strong resilience, many advantages, and large potential have enabled it to weather various domestic and global challenges. This article explores the reasons behind China's confidence and the policy measures it is implementing to achieve its growth target amidst the challenging global economic landscape.

China's economic fundamentals are stable, with many advantages, strong resilience, and great potential. Despite changes in internal and external environments and some challenges in economic operations, the country's economic fundamentals remain robust. The conditions supporting long-term positive growth and the fundamental trend for improvement remain unchanged (Liu Jieyi, CPPCC spokesperson, 2025). This stability and resilience are key factors contributing to China's confidence in maintaining its economic growth target.

China's decision to maintain its economic growth target at 'around 5%' for 2025 also reflects its commitment to high-quality development and structural reforms. The country is implementing various policy measures and reforms to achieve its growth target amidst the challenging global economic landscape. Some of these measures include:

1. Fiscal Support: China has been providing fiscal support to boost domestic demand and stimulate economic growth. In 2024, the government arranged a package of incremental policies to effectively boost social confidence and achieve its growth target of around 5 percent. This included increasing household incomes and enhancing fiscal investment to tap into the immense consumption potential of the country (Source: "China's economy demonstrated remarkable resilience and adaptability in 2024, amid complex domestic and global landscapes").
2. Market Barrier Dismantling: China is dismantling market barriers to encourage new avenues for consumption through technological advancements and the broader opening of the market. This includes initiatives like the consumer goods trade-in policy, which is supported by 150 billion yuan (approximately 20.55 billion U.S. dollars) in funding raised through ultra-long special treasury bonds allocated to local governments (Source: "China's economy demonstrated remarkable resilience and adaptability in 2024, amid complex domestic and global landscapes").
3. High-standard Opening-up: China is expanding industry access and launching pilot programs to attract global investment, further opening up its market. In 2024, the national negative list for foreign investment eliminated all market access restrictions for foreign investors in the manufacturing sector, a groundbreaking move for global manufacturers entering the Chinese economy (Source: "China's economy demonstrated remarkable resilience and adaptability in 2024, amid complex domestic and global landscapes").
4. Real Estate Market Stabilization: China is implementing well-targeted policies to strengthen confidence and rekindle demand in the real estate market. Clear signs of recovery have emerged in 2024, with a key meeting convened by the Political Bureau of the Communist Party of China Central Committee underscoring the urgency of stabilizing the market (Source: "China's economy demonstrated remarkable resilience and adaptability in 2024, amid complex domestic and global landscapes").
5. Innovation and Green Development: China is focusing on innovation-driven growth and green development to achieve high-quality economic growth. The country is investing in new industries and business models, such as intelligent manufacturing and smart products, as well as green productivity, including wind power, photovoltaics, and new-energy vehicles (Source: "China, with its world-leading and most comprehensive industrial chain, is undergoing transformation and upgrading, particularly in green and intelligent development... These developments are generating strong momentum for economic growth, adding certainties to the world economic recovery").
6. Expanding Domestic Demand: China is promoting sci-tech innovation and high-standard opening-up to expand domestic demand. During the national two sessions in 2025, measures to expand domestic demand and promote sci-tech innovation and high-standard opening-up are expected to be outlined (Source: "During the two sessions, measures to expand domestic demand and promote sci-tech innovation and high-standard opening-up are expected to be outlined, according to the Xinhua report").



In conclusion, China's decision to maintain its economic growth target at 'around 5%' for 2025 reflects its confidence in navigating the looming trade war and other headwinds. The country's solid foundation, strong resilience, many advantages, and large potential, coupled with its commitment to high-quality development and structural reforms, enable it to achieve its growth target amidst the challenging global economic landscape. By implementing various policy measures and reforms, China is well-positioned to maintain its economic growth and continue its journey towards high-quality development.