Growth target hailed as sign of confidence

China's 5 percent growth target for this year "signals strong confidence" in its economic prospects as the country prioritizes sustainable development despite external challenges, said global experts.

They also praised China's continued commitment to opening-up, noting that it creates opportunities for other countries that seek to modernize their economies.

The main targets for development this year include GDP growth of around 5 percent, CPI increase of around 2 percent and a drop of around 3 percent in energy consumption per unit of GDP, said Chinese Premier Li Qiang, who delivered the Government Work Report at the opening meeting of the third session of the 14th National People's Congress in Beijing on Wednesday.

Andrew Wilford, researcher at the New Zealand Contemporary China Research Centre of the Victoria University of Wellington, said China's growth target of around 5 percent for this year "signals strong confidence" in the country's economic prospects.

This goal indicates that the Chinese leadership sees significant new avenues for expansion — building on last year's robust foreign trade growth — and is committed to sustaining the economic momentum, he said.

The nation's total goods imports and exports reached 43.85 trillion yuan ($6.1 trillion) in 2024, up 5 percent year-on-year, according to China's General Administration of Customs in January.

Wilford said the work report is a "welcome announcement" as proposed policies align well with efforts to improve living standards while strengthening the economy against external challenges.

China is working toward a more balanced mix of services and manufacturing, he said, adding that the goal to creating more than 12 million new urban jobs is an "important step toward stimulating growth and mitigating some of the headwinds in the international economic environment".

Rasha Al Joundy, a senior researcher at the Dubai Public Policy Research Centre, said the 5 percent target reflects China's strategic policy toward economic progress while focusing on sustainable development despite challenges on the global stage.

In spite of global economic headwinds, China showed adaptability and resilience to achieve 5 percent growth in 2024, she said.

Regarding China's continued commitment to opening-up, Joundy said it is expected to bolster the country's global economic standing amid rising US-led protectionism.

By further expanding investments in key sectors including renewable energy, technology, logistics and finance, she said China's infrastructure manufacturing capabilities offer a great opportunity for Middle Eastern countries that seek to modernize their economies, as well as rebuild and expand projects.

According to the report, China will adopt a more proactive fiscal policy and a moderately loose monetary policy.

China's fiscal and monetary policy is modestly expansionary, continuing the incremental loosening of system liquidity that became evident in the latter part of 2024, said Warwick Powell, adjunct professor at Queensland University of Technology and former policy adviser to former Australian prime minister Kevin Rudd.

"We see an emphasis on structural change that aims to continue China's transition to a high-technology-driven industrial economy, with a burgeoning services sector," Powell said.

Expansion in technology

Rates of credit expansion in technology and manufacturing are expected to be pivotal in driving structural change and growth, he added.

Jack Perry, chairman of the 48 Group and CEO of London Export Corporation, said he sees the "welcoming spirit that China has when it comes to business", referring to the report, which says that Beijing will keep working to foster a first-rate business environment, thus enabling foreign-funded enterprises to achieve greater success in China.

"It's like the Chinese government is saying: Here are the opportunities, and we are encouraging an exploratory spirit in China," he said, referring to the further opening-up of the service sector.

"China is like a high mountain with an amazing view," he said. "If the mountain is closed, one can just dream about what's there. But China has said: 'Come, explore, walk up the mountain and we will be there with you to support you.'"

"I think that shows an inclusive, ice-breaking spirit," he said.

Jirada Phakwilaikiat, a senior research officer at the Kasikorn Research Center in Bangkok, said the Chinese government is committed to supporting the private sector.

An important effort by the Chinese government has been to use technology-related industries as a key driving force for China's economy, she said, thereby strengthening confidence in the business sector.

Yang Wanli in Bangkok and Shao Xinying in Beijing contributed to this story.

Contact the writers at xinxin@chinadaily.com.cn.