China set to stimulate growth amid global uncertainty

Editor's Note: China's economy has garnered global attention during this year's two sessions. Experts provide insights on the country's economic trends amid global uncertainties, and delve into China's evolving role as a primary driver of global growth. Below are some excerpts:

Stimulating domestic demand key to stabilizing markets

The Government Work Report submitted to the National People's Congress, China's top legislature, for deliberation on March 5, has set a growth target of 5 percent, with an inflation target of 2 percent, and an official budget deficit of 4 percent of GDP. The policy priorities include stimulating domestic demand, promoting technological innovation, and stabilizing the housing and stock markets.

Fiscal policy is proactive, with a focus on supporting consumption and investment. The government has allocated funds to boost consumer spending and equipment upgrades. Monetary policy is moderately loose, aiming to maintain ample liquidity and support growth.

Risk prevention is a key focus, with measures introduced to stabilize the housing and stock markets and manage local-government debt. Tech and green development remain priorities, with an emphasis on the private sector's role in innovation.

Overall, the government's policy priorities are focused on stimulating domestic demand and promoting technological innovation. While the announced fiscal stimulus is expected to partially offset the impact of tariffs imposed by the United States, additional stimulus may be necessary if growth momentum indicates significant downside risks. The government's proactive fiscal policy and moderately loose monetary policy are expected to support growth, while the emphasis on risk prevention and tech and green development will help to ensure sustainable and high-quality growth.

Ding Shuang, chief economist for Greater China and North Asia, Standard Chartered Bank.