President Calls for Stability and Self-Reliance as Economic Challenges Loom

President Xi Jinping has called for China to adopt more proactive macroeconomic policies in 2025 to ensure continued growth, as the nation faces potential new tariffs from the United States. Speaking at a Lunar New Year event in Beijing on January 20, Xi emphasised the importance of pursuing progress while maintaining stability, and reiterated his commitment to advancing high-level technological and scientific self-reliance, as reported by Xinhua News Agency.

China’s economy outperformed expectations in 2024, driven by a late surge in policy measures and a boom in exports. The country’s GDP grew by 5.4% in the final quarter, surpassing analyst predictions and marking the fastest growth in six quarters. Full-year growth reached 5%, providing a solid foundation. However, concerns are mounting that the Chinese government may reduce stimulus efforts just as former President Donald Trump returns to the White House. Trump has threatened to impose tariffs as high as 60% on Chinese imports, a move that could severely disrupt trade and negatively affect the factors that drove a quarter of China’s growth in 2024.

In March, China will announce its economic growth target for 2025 at the annual parliamentary session. The goal is expected to be similar to, if not identical to, last year’s target, based on already disclosed provincial targets.