Local to-do lists underscore China's economic vitality

In the run-up to Chinese New Year, the local "two sessions" meetings, which recently concluded, have devised pragmatic roadmaps for high-quality growth in 2025, highlighting the Chinese economy's remarkable resilience and dynamic potential.

Provincial-level "two sessions" -- the annual meetings of provincial legislative and political advisory bodies -- generally take place before the national "two sessions" and offer a glimpse into the country's economic operations for the year ahead. The world's second-largest economy met its annual growth target in 2024, with GDP expanding 5 percent year on year thanks to a raft of pro-growth policies.

Based on government reports unveiled at local "two sessions," most of China's provincial-level regions have set their local GDP growth targets for 2025 at about 5 percent or higher. These local growth targets provide a clue to the prospects of the national economy in the final year of the country's 14th Five-Year Plan.

Guangdong, a manufacturing hub in south China, has announced a growth target of around 5 percent for 2025. In the past year, Guangdong became the first province to boast a GDP of 14 trillion yuan ($1.95 trillion dollars), exceeding that of the Republic of Korea.

Jiangsu province, another economic powerhouse, has projected growth of over 5 percent for this year, backed by a structural optimization strategy focused on "eliminating outdated production capacities" and "nurturing future industries." This approach of balancing quality with quantity is at the heart of China's sustainable economic development.

New quality productive forces, industrial upgrades and technological innovation have continued to figure prominently in local economic roadmaps. Beijing's government work report highlights a focus on 20 emerging sectors, including humanoid robotics, bio-manufacturing and new materials. Such initiatives will help solidify the foundation for economic stability and accumulate momentum for future progress.

Thanks to the country's visa-free policy and various incentives, cultural and tourism sectors expect a strong growth this year. The ongoing winter tourism boom and the upcoming Spring Festival holiday may well secure a good start in the sectors. Shaanxi province, a major tourism power in northwest China, reaped a double-digit growth in cultural and tourism income in 2024, the province expects a further growth of over 5 percent this year.

In response to fluctuating external demand, local governments have zeroed in on expanding domestic consumption as a key growth driver. Many provinces and cities are focusing on upgrading equipment and encouraging the replacement of old consumer goods, including automotive and household appliances.

Some regions also place emphasis on investment. Shanghai is pushing forward major projects with a total investment of 240 billion yuan. Such moves are set to create a positive cycle of investment and consumption to reinforce economic stability.

Far from retreating under external pressure, China is expanding its opening-up efforts to counteract the risks of de-globalization. Jiangsu is implementing measures to eliminate restrictions on foreign investment in the manufacturing sector, offering incentives for foreign enterprises to reinvest profits, and supporting pilot zones to attract foreign capital in industries like telecommunication and health care.

High-quality development and high-standard opening up are China's answer to an uncertain external environment. Local governments are putting them into practice.

Both the International Monetary Fund and the World Bank have recently raised their forecasts for China's economic growth in 2025. As China has been a major engine for global economic growth, this should be a shot in the arm for a world eager to walk out years of sluggish growth.