China’s top economic leaders outlined their priorities for 2025 during a joint press conference on Thursday, as part of the annual ‘two sessions’. The two hours and 20 minutes long press conference clocks one of the longest of its kind.
The press conference was attended by the heads of the National Development and Reform Commission (NDRC), China’s central economic planner, as well as the ministers of finance and commerce, the governor of the central bank, and the head of the country’s main securities regulator.
At the press conference, China’s top economic officials expressed strong confidence in achieving the 5% GDP growth target, highlighting the robust performance of emerging industries and the government’s plans to foster industrial transformation. A new “guidance fund” will be established to support this transition.
Commerce Minister Wang Wentao acknowledged the challenges facing exports but assured that the government would take necessary actions to stabilize foreign trade. Notably, trade with Belt and Road Initiative countries now accounts for more than half of China’s total trade, and trade in services has exceeded 1 trillion yuan.
Finance Minister Lan Foan emphasized that China has sufficient reserves to manage external uncertainties and revealed plans to allocate over 1.2 trillion yuan in fiscal investment to boost the tech sector in 2025.
Central Bank Governor Pan Gongsheng discussed the country’s monetary policy, stating that there is room for further cuts to the reserve requirement ratio and plans to lower interest rates when appropriate. He also reaffirmed efforts to stabilize the yuan and prevent excessive fluctuations in its exchange rate.
Wu Qing, head of China’s securities regulator, announced tighter regulations to safeguard investors, addressing issues such as financial fraud, market manipulation, and insider trading.
Additionally, China plans to ramp up support for the tech sector, driving innovation despite external pressures. The central bank will double its funding for the sector and remain open to foreign investment.
Beijing is also set to boost domestic consumption and attract foreign tourism by increasing the long-term bonds for consumer goods trade-ins and enhancing visa and payment systems.
On the local government debt front, China will enforce strict rules to prevent the rise of hidden debt, focusing on transforming existing debt vehicles.
Lastly, the government is actively addressing financial risks from small banks and the property market, reducing the number of high-risk banks, and preparing to mitigate spillover risks from global markets to maintain forex stability.
