China to strengthen policy coordination in finance and consumption to meet 5% growth target in 2025

China will strengthen policy coordination in finance and consumption to achieve its economic growth targets in 2025, a top official said at a press conference on the economy during the third session of the 14th National People's Congress on Thursday in Beijing.

Despite increasing global uncertainties as well as insufficient domestic demand, China is fully confident in achieving its economic growth target of "around 5 percent" this year, said Zheng Shanjie, head of the National Development and Reform Commission, citing solid foundation and support.

China's economy demonstrated strong resilience and high-quality development in 2024, with the country's annual GDP reaching around 135 trillion yuan ($18.6 trillion).

Boosting consumption and services

China's Commerce Minister Wang Wentao said that consumption remains the main driving force for economic growth, highlighting the importance of services, which has grown well in 2024.

The total retail sales of consumer goods reached 48 trillion yuan in 2024, up by 3.5 percent year on year, said Wang. Service retail sales grew by 6.2 percent.

Wang also highlighted the consumer market in 2025 has been vibrant, especially during the Spring Festival. He said the Asian Winter Games fueled the country's "ice-and-snow economy" while the popular animated film "Ne Zha 2" boosted moviegoing.

China has expanded the trade-in program across multiple sectors this year to encourage the replacement of outdated goods with newer and more advanced options. Wang said the program has spurred consumption, with sales of items such as automobiles and home appliances surpassing 1.3 trillion in 2024.

Reducing financial pressure on consumers

China will roll out new interest subsidy policies on certain loans to ease financial burdens on individuals and businesses as well as stimulate consumption, Chinese Finance Minister Lan Fo'an said.

Fiscal interest subsidies will be provided to personal consumer loans in key sectors and business loans in industries closely related to daily life, including catering, hospitality, healthcare and domestic services. Lan said these policies will reduce financial pressure on consumers and lower the financing costs for businesses.

Sufficient fiscal and monetary policies

China will cut reserve requirement ratios (RRRs) and interest rates when appropriate this year in line with domestic and international economic and financial conditions as well as the performance of financial markets, Pan Gongsheng, governor of the People's Bank of China said.

The average RRR for China's financial institutions now stands at 6.6 percent, and there is still room for further reduction, said Pan.

Meanwhile, Finance Minister Lan added the Chinese government has sufficient reserve tools and policy space to address potential internal and external uncertainties.

Supporting private economy and sci-innovation companies

China's technology has developed rapidly, highlighting its progress in the fields of artificial intelligence (AI), quantum technology and cloud computing, said Commerce Minister Wang.

Since the beginning of this year, technology companies such as DeepSeek have stood out and have given the world a new understanding of China's technological innovation capabilities, driving the revaluation of Chinese assets, Wang added.

China Securities Regulatory Commission (CSRC) Chairman Wu Qing said that AI has been a buzzword during this year's Two Sessions.

Wu said CSRC has always attached great importance to supporting technological innovation and have continued to reform the capital market and its boards.

In 2024, high-tech enterprises accounted more than 90 percent of newly listed companies on the Science and Technology Innovation Board (STAR Market), ChiNext Market and Beijing Stock Exchange.

Wu added that China will accelerate the improvement of support mechanisms to promote the listing of high-quality technology companies.