China aims for economic growth of around 5% for 2025

Meanwhile China is aiming for an economic growth target of some five-percent this year despite the broader ripple effects of a trade war with the U.S.

Choi Soo-hyung has details.

The Chinese government has set its economic growth target for this year at around 5 percent for the third consecutive year.

On Wednesday, at the opening of the National People's Congress in Beijing, Chinese Premier Li Qiang said that China needs to focus on job stability, risk prevention, and improving people's livelihoods.

He also announced that the Consumer Price Index increase rate for this year is around 2 percent, the lowest in 20 years since 2004.

Premier Li added that the goal is to improve the balance between supply and demand and keep overall prices within a reasonable range.

Experts say that China is focusing on boosting domestic demand due to increasing uncertainty in global markets.

"In a planned economy, the government always says they will try hard to make it happen, rather than just expecting it. This means it will work hard to achieve that 5% growth target. It also means China will actively boost domestic demand."

China has also increased its fiscal deficit ratio to 4 percent of GDP this year, and raised its research and development budget by 10 percent compared to last year.

Experts said this means that Beijing will expand government spending widely in response to Trump's tariff policies.

"Beijing is focusing on boosting domestic demand and increasing government spending. With the possibility of higher U.S. tariffs on Chinese goods, China is taking aggressive measures such as raising its fiscal deficit to 4% of GDP "

China's defense budget will also rise to 7-point-2 percent this year.

China has increased its defense budget for four years in a row with a growth rate above 7 percent, even as economic growth has slowed, meaning military pressure on Taiwan is expected to rise.

At the meeting, it was mentioned that there would be active participation in multilateral organizations such as APEC and the G20 to strengthen trade cooperation, as well as continued efforts to promote a Free Trade Area among South Korea, China and Japan.

Choi Soo-hyung, Arirang News.