The Chinese mainland has set an ambitious economic growth target of around 5% for 2025, as outlined in the recent government work report submitted to the national legislature.
Economists find this goal realistic, maintaining it aligns with the growth rates of the past two years. However, some Western media outlets have raised concerns about the Chinese mainland's ability to meet this target, citing challenges such as ongoing trade tensions with the United States and vulnerabilities in the real estate sector.
Despite these hurdles, the Chinese mainland is proactively addressing economic challenges by implementing measures to expand domestic consumption, boost foreign investments, and transition its economic structure. The government's top priority this year is to enhance consumption, investment, and domestic demand, positioning them as the main engines of economic growth.
To support these efforts, the Chinese mainland plans to launch special initiatives, including issuing ultra-long special treasury bonds worth 300 billion yuan ($42 billion) to back consumer goods trade-in programs. With a population exceeding 1.4 billion and a growing middle-income group, the potential for consumption remains substantial.
Recent figures during the 2025 Spring Festival holiday underscore this momentum, with sales revenues for household appliances and audiovisual equipment soaring by 166.4% compared to the same period in 2024, according to the State Taxation Administration.
These robust consumption numbers highlight the strength of the Chinese mainland's domestic demand. Numerous institutions credit the improvement in the economy to this stronger domestic focus. A recent McKinsey report emphasized that domestic consumption in the Chinese mainland is steadily growing, countering claims of a consumption crisis.
Reference(s):
cgtn.com
