China points to GDP growth of around 5%in 2025 and establishes stimulus measures as commercial concerns are mounted

China established its GDP growth target on Wednesday by 2025 in “around 5%” and established stimulus measures to boost its economy in increasing commercial tensions with the United States

Beijing raised its objective of budget deficit to “around 4%” of the GDP of 3% last year, according to a copy of the government report seen by CNBC, while the main legislative agency of the country starts its annual meeting.

The 4% deficit would mark the highest recorded in 2010, according to the data accessed through wind information. The previous maximum was 3.6% in 2020, according to the data.

The government report established a plan to issue 1.3 billion yuan yuan of special treasury in 2025, 300 billion yuan more than last year. Another 500 billion yuan will be issued in special treasury bonds to support large state commercial banks.

The report reiterated Beijing Plan to adopt a “more proactive” fiscal policy and an appropriately accommodated “monetary policy.

In an implicit recognition of slow domestic demand, Beijing also reviewed its annual consumer prices inflation to “about 2%” – The lowest in more than two decades – 3% or more in previous years, according to Asia Society Policy Institute.

The new inflation objective would act more as a roof than a goal to be carried out. Consumer prices It rose only 0.2% in 2024 and 2023while Producer prices have declined for more than two years.

The country’s annual parliamentary meeting, known as “two sessions”, began on Tuesday with the opening ceremony of the Chinese people’s political advisory conference, a main advisory body.

The National People Congress began its meeting on Wednesday and is expected to conclude its annual session on March 11. The Minister of Foreign Affairs and the heads of several economic departments must hold press conferences in the interim.

The yields of the 10 -year government bonds fell slightly as the leadership promised to “make timely cuts” to interest rates, as well as the required reserve relations, which determine the amount of cash that banks must have. Yuan on the high Mar Chinese depreciated 7,2640 against the US dollar.

The opening of the National People’s Congress of China coincides with US President Donald Trump’s planned speech in a joint session of Congresswhere Trump could share his agenda and objectives for the year.

On the subject of Taiwan, Beijing emphasized that “separatist activities” aimed at the independence of the island governed democratically, while promoting a “peaceful development of relations between the Strait” would be resolutely opposed.

Beijing on Tuesday responded with additional tariffs up to 15% In some US goods from March 10, and export restrictions to 15 US companies. China too 10 US companies were added to a list of unreliable entities that could limit their ability to do business in the Asian country. Many of the named American companies work in Aerospace, Defense or Drones.

“We hope to work with the American side to address the concerns of others through dialogue and consultation on the basis of mutual respect, equality, reciprocity and mutual improvement,” said Lou Qinjian, spokesman for the third session of the 14th National Congress of the People, to journalists on Tuesday morning.

“At the same time, we never accept any act of pressing or threatening, and we will firmly defend our sovereignty, security and development interests,” he said in Mandarin, through an official translation.

While the second largest economy in the world grew by 5% in 2024The growth of retail sales fell strongly to 3.4% of 7.1% in 2023. Real estate resistance persisted, and investments in the sector fell by 10.6% last year, the previous year.

Investors have seen Beijing’s efforts closely to address the country’s economic slowdown after a high -level unexpected Promise of support in September caused a sharing rally. Market profits recovered again after the Chinese president Xi Jinping sustained Rare meeting last month with businessmen including Jack Ma from Alibaba and the artificial intelligence startup of Deepseek, Liang Wenfeng.

“It cannot be denied that the technologies of AI are accompanied by some unknown risks and challenges and will bring new tasks in areas such as social security, social governance and ethics … It will inevitably have an impact on production,” Lou said.

“China … opposes excessively the concept of national security or politicizing economic and technological problems,” he said.

Investors will also closely observe parliamentary meetings to obtain more comments on the artificial intelligence and efforts of China to provide regulatory certainty for the private sector.

– CNBC Bernice OI contributed to this report.