China's Economic Growth Strategy Amid U.S. Trade Tensions

China is maintaining its economic growth target of around 5% for 2025, despite challenges such as U.S. trade tariffs and internal economic pressures. The government is focusing on shoring up short-term growth while transitioning towards a more innovative economy, less reliant on real estate and external technology.

China has pledged to maintain an economic growth target of around 5% for the year 2025, a bold stance amid increasing trade tensions with the United States and other economic challenges. Premier Li Qiang announced this target at the National People's Congress, highlighting China's ambition to boost growth during tumultuous times.

The International Monetary Fund forecasts China's economy will grow by 4.6% in 2023, a slight decline from previous years. Economic challenges include tariffs enforced by former U.S. President Donald Trump, ongoing real estate market issues, and muted consumer spending and business investment.

In December, the Chinese Communist Party vowed to invigorate economic performance, partly by reducing reliance on the debt-heavy real estate sector and advancing a high-tech economy more resilient to U.S. technology export restrictions. Measures include consumer rebates, business machinery upgrades, and a monetary policy shift to a 'moderately loose' approach.

(With inputs from agencies.)