From CNBC: 2025-03-04 19:55:44

China set its 2025 GDP growth target at “around 5%” amid escalating trade tensions with the U.S. Beijing raised its budget deficit target to “around 4%,” the highest on record. The government plans to issue 1.3 trillion yuan ultra-long-term special treasury bonds and adopt a more proactive fiscal policy.

Beijing revised down its annual consumer price inflation target to “around 2%” — the lowest in over two decades. The country’s annual parliamentary gathering, known as the “Two Sessions,” started with the Chinese People’s Political Consultative Conference. The National People’s Congress is expected to wrap up on March 11.

Trump imposed fresh tariffs on Chinese goods, prompting Beijing to respond with additional tariffs of up to 15% on some U.S. goods and restrictions on exports to 15 U.S. companies. China also added 10 U.S. firms to an unreliable entities list. Dialogue and consultation are sought to address concerns.

Increased U.S. duties will impact China’s exports, with an economy struggling with lackluster domestic demand. While China’s GDP grew by 5% in 2024, retail sales growth fell to 3.4% and real estate investments dropped by 10.6%. Efforts to address the economic slowdown continue with stimulus measures.

Read more: China targets ‘around 5%’ GDP growth in 2025 and lays out stimulus measures as trade worries mount