From CNBC: 2025-03-06 03:00:29

China’s Finance Minister Lan Fo’an announced at a press conference that China has more room to implement fiscal policy due to domestic and external uncertainties. The country plans to increase its on-budget deficit to 4% of GDP, issue $178.9 billion in special treasury bonds, and target a 5% GDP growth for 2025.

Additionally, China aims to issue $679 billion in local government bonds to ease financial strains. Officials emphasized the hard work needed to reach the 5% GDP target, attributing last year’s growth to strong exports. The country will lower its inflation target to 2%, the lowest in 20 years, amidst trade war worries.

Chinese President Xi Jinping has been encouraging private business growth and innovation to boost low business and consumer sentiment. The government is also responding to U.S. tariffs with targeted duties and restrictions on American companies. The National People’s Congress meeting is part of China’s “Two Sessions” annual parliamentary gathering.

Read more: China has room to act on fiscal policy amid uncertainties, finance minister says