Highlights from China’s 2025 Government Work Report
During the opening of the third session of the 14th National People’s Congress in Beijing on March 5, Chinese Premier Li Qiang presented the Government Work Report, outlining the country’s economic objectives for 2025.
According to the report, China has set a GDP growth target of around 5 per cent for 2025, maintaining last year’s goal as the world’s second-largest economy focuses on stimulating domestic demand through enhanced policy support. In 2024, China’s GDP grew by 5 per cent, surpassing USD 17.8 trillion for the first time.
The deficit-to-GDP ratio is set to rise to 4 per cent, up from 3 per cent in 2024, allowing for increased public spending. To support this, the government will issue USD 182 billion in ultra-long-term special treasury bonds, up from USD140 billion last year. An additional USD 70 billion will be allocated to strengthening large State-owned commercial banks.
Local government funding is also set to expand, with special bond quotas increasing to USD 613 billion, compared to last year’s record high of USD 544 billion. As a result, total new government debt in 2025 will reach USD 1.64 trillion—an increase of USD 404 billion over the previous year. This increased spending aims to boost economic activity and fund key projects.
Job creation remains a priority, with China targeting the creation of more than 12 million urban jobs in 2025, while keeping the urban unemployment rate at around 5.5 per cent.
To drive economic growth, the government will allocate USD 102 billion for investment, with a strong emphasis on infrastructure projects. Market reforms will continue, focusing on removing trade barriers and encouraging private sector growth. Policies to enhance economic openness include expanding zero-tariff treatment and broadening visa-free entry programs.
Foreign businesses will also benefit from greater support, including improved financial services, expanded export credit insurance, and incentives for cross-border e-commerce and overseas warehouses. The government aims to strengthen trade cooperation zones and integrate domestic and international markets, particularly in green and digital trade. Additionally, pilot programs in telecoms, healthcare, and education will help attract more foreign investment.
As part of its broader strategy to further open up the country, China is extending zero-tariff treatment to least-developed countries and expanding visa-free access, including transit exemptions of up to 240 hours. These measures aim to streamline trade and investment while strengthening China’s role in the global economy.