New GDP target shows emphasis on necessity, feasibility

China's determination to keep its economic growth target for this year at around 5 percent, unchanged from the previous year, reflects a realistic and pragmatic approach in the face of external headwinds and internal economic adjustments, global experts said.

They also applauded China's continued commitment to opening-up, which is expected to strengthen the country's global economic position amid rising protectionism led by the United States.

"The 2025 GDP growth target was set at around 5 percent with careful consideration to avoid excessive restraint or being perceived as passive while also ensuring feasibility. This reflects an emphasis on balancing stability and progress," said Satoshi Tomisaka, a professor at the Institute of World Studies at Takushoku University in Tokyo, Japan.

Noriyuki Kawamura, emeritus professor at Nagoya University of Foreign Studies in Japan, said: "The target of around 5 percent GDP growth is considered reasonable, as it balances necessity and feasibility. However, concerns remain that sluggish domestic consumption and tariffs imposed under Trump 2.0 could weigh down GDP."

In 2024, the Chinese government implemented a trade-in subsidy policy, which yielded positive results, but a new concrete consumption policy is needed to replace it, Kawamura said.

Vigorously boosting consumption is the top priority among the major tasks in 2025 outlined in the Government Work Report, which was delivered by Premier Li Qiang on Wednesday.

Premier Li's emphasis on boosting consumption and improving people's livelihoods as key drivers of the economic policy is a strategic shift from investment-led growth to a more sustainable domestic demand-driven model, said Anna Rosario Malindog-Uy, vice-president of Asian Century Philippines Strategic Studies, a Manila-based think tank.

According to China's National Bureau of Statistics, final consumption expenditure accounted for 44.5 percent of the country's economic growth in 2024.

"In contrast, consumption contributes over 65 percent to GDP growth in developed economies. A stronger focus on domestic demand will make China's economy more resilient to external shocks," Malindog-Uy said.

This policy direction is crucial for sustaining economic growth, fostering innovation and maintaining China's competitiveness in a shifting global landscape, she said.

Promoting openness

In the Government Work Report, Li emphasized that regardless of changes in the external environment, China should remain steadfast in its commitment to opening-up.

Kawamura, from Nagoya University of Foreign Studies, stressed that further deepening of reform and opening-up is a crucial policy for both China's economic development and the achievement of Chinese modernization.

"In particular, as the US government advances economic decoupling as part of its containment strategy against China, promoting openness and implementing preferential policies for foreign enterprises will be highly effective. At the same time, these measures could serve as a counterstrategy against the tariff increases imposed under Trump 2.0," Kawamura said.

Tomisaka, from Takushoku University, highlighted that China is pursuing stable growth amid the uncertainty of policies, such as US President Donald Trump's tariff measures, by strengthening regional networks and bilateral frameworks. He also pointed out the significance of linking this approach to the development of domestic industries, noting that it could play a key role in stabilizing supply chains.