China's economy has been on an impressive upward trajectory since September last year, marked by a robust GDP performance in the fourth quarter. This momentum, extending through the Chinese New Year, sets a promising stage for economic development through 2025.
The surge was fueled by a series of stimulus measures and top-tier policy designs aimed at addressing structural challenges and creating new engines for growth. Despite facing intensifying global headwinds, China's economy remains underpinned by a stable foundation, abundant strengths, and strong resilience.
In an article published in the Qiushi Journal, Xi Jinping emphasized the importance of balancing external risks with domestic opportunities as China navigates its 2025 strategy. This year marks the culmination of the 14th Five-Year Plan (2021–2025), a strategic blueprint guiding the nation's efforts toward high-quality development, technological innovation, and sustainable economic reforms. Looking ahead, the launch of the 15th Five-Year Plan (2026-2030) will shape China's next phase of growth amid evolving global and domestic challenges.
Harmonizing Market Efficiency with Proactive Governance
Xi highlighted the crucial need to coordinate an efficient market with proactive governance. The government must act decisively when necessary while also knowing when to refrain from intervention. Recent policy moves exemplify this focus. In January, the National Development and Reform Commission (NDRC) released guidelines for building a unified national market, encouraging localities to integrate into this framework. This initiative aims to lower market transaction costs, foster a favorable environment for technological innovation, and strengthen competitive advantages.
Matteo Giovannini, a finance professional at the Industrial and Commercial Bank of China, noted in an op-ed on CGTN, \"Deregulating key industries, encouraging private sector participation, and attracting foreign investment in high-tech and green energy sectors will be instrumental in driving this transformation.\" He added that restoring confidence among private enterprises is critical, as they are key engines of job creation and technological advancement.
Resilient and Adaptable
The Qiushi article also addressed the balance between total supply and demand to ensure smooth economic circulation, reflecting the main tasks outlined by the Central Economic Work Conference held in December last year. These tasks not only drove a dramatic rebound in the Chinese economy but also laid a positive foundation for its 2025 trajectory.
Experts have expressed optimism about China's economic adaptability and resilience. Michael Borchmann, former head of the European and International Affairs Department of the German state of Hesse, stated, \"Amid current global challenges, it's rare for an economy like China's, already in a stage of high-quality development, to sustain an annual GDP growth that meets the target.\" Official data shows China's GDP in 2024 increased by 5 percent from 2023, reaching 134.9 trillion yuan ($18.77 trillion).
\"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,\" Borchmann added.
Reference(s):
How did China lay a good foundation for 2025 economic development?
cgtn.com
