CGTN: How did China lay a good foundation for 2025 economic development

BEIJING, March 02, 2025 (GLOBE NEWSWIRE) -- CGTN publishes an article detailing how China prepared itself for economic growth in 2025 through a combination of targeted stimulus measures and high-level policy frameworks.

China's economy has shown a remarkable surge since September last year, with multiple data, such as a strong GDP performance in the fourth quarter, indicating a robust start for 2025.

This momentum, extending through the Chinese New Year, was driven by a series of stimulus measures and top-tier policy designs that aimed at tackling the structural challenges within the Chinese economy and creating new engines for economic growth.

However, it unfolds against a backdrop of intensifying headwinds, as a shifting global landscape amplifies pressures on China's economic stability.

As adverse impacts from the changing external environment intensify, China's economic operation still faces difficulties and challenges, Chinese President Xi Jinping wrote in an article.

At the same time, the Chinese economy is underpinned by a stable foundation, abundant strengths, strong resilience and vast potential, and the supporting conditions and fundamental trend for long-term growth have not changed, according to the article, published on Qiushi Journal on Saturday.

Navigating these dual realities — balancing external risks with domestic opportunities — lies at the heart of China's 2025 strategy, especially as this year not only marks the culmination of the 14th Five-Year Plan (2021–2025) — a strategic blueprint that has guided the nation's efforts to achieve high-quality development, advance technological innovation, and foster sustainable economic reforms — but also sets the stage for the launch of the 15th Five-Year Plan (2026-2030), which will shape China's next phase of growth amid evolving global and domestic challenges.

Harmonizing market efficiency with proactive governance
In his article, Xi stressed that it is essential to coordinate the relationship between an efficient market and a well-functioning government, and the government must act decisively when necessary while also knowing when to refrain from intervention.

China's recent policy moves have exemplified this focus. In January, the National Development and Reform Commission (NDRC), China's top economic planner, released a guideline for building a unified national market, aiming to encourage all localities and government departments to accelerate their integration into the unified national market and actively support its development.

This guideline is expected to help lower market transaction costs, create a favorable market environment for technological innovation and business development, and strengthen competitive advantages.

Such structural reforms align with a growing consensus among economists that China's economic evolution hinges on fostering innovation and productivity over short-term fixes — a shift exemplified by the unified market initiative's focus on systemic efficiency.

"Deregulating key industries, encouraging private sector participation and attracting foreign investment in high-tech and green energy sectors will be instrumental in driving this transformation," Matteo Giovannini, a finance professional at the Industrial and Commercial Bank of China and a Non-Resident Associate Fellow at the Center for China and Globalization, wrote in an op-ed published on CGTN. 

"Restoring confidence among private enterprises will also be critical, as these firms are key engines of job creation, technological advancement and economic dynamism."

'Resilient and adaptable'
Xi's article on Qiushi also addressed other key points, including the relationship between total supply and demand to ensure smooth economic circulation, which to a large extent reflected the main tasks outlined by the tone-setting Central Economic Work Conference held in December last year.

Those tasks, apart from driving a dramatic rebound for the Chinese economy, also laid a positive foundation for its 2025 trajectory. Experts have pointed out the adaptability and resilience rooted in China's economy, expressing optimism following the Central Economic Work Conference.

Amid current challenges facing the global economy, it is rare for an economy like China's, which is already in a stage of high-quality development, to sustain an annual GDP growth that meets the target, said Michael Borchmann, former head of the European and International Affairs Department of the federal German state of Hesse.

Official data shows China's GDP in 2024 increased by 5 percent from 2023, topping 134.9 trillion yuan ($18.77 trillion).

"This not only shows that the Chinese economy is extremely resilient and adaptable, but also reflects the steady expansion of domestic demand and the results of industrial transformation." he said.

https://news.cgtn.com/news/2025-03-01/How-did-China-lay-a-good-foundation-for-2025-economic-development--1BnOlAz4mti/p.html

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