Zheng Shanjie, head of the National Development and Reform Commission, Lan Fo'an, minister of finance, Wang Wentao, minister of commerce, Pan Gongsheng, governor of the People's Bank of China, and Wu Qing, chairman of the China Securities Regulatory Commission, attend a press conference on economy for the third session of the 14th National People's Congress (NPC) in Beijing, capital of China, March 6, 2025. Photo: IC

Five major Chinese departments held a press conference on Thursday, amid the ongoing national "two sessions" - a key political event shaping the country's policy direction - to address the priorities and measures in various sectors aiming to realize China's key economic and social development goals in 2025 set in the Government Work Report. 

According to what was conveyed at a press conference for the third session of the 14th National People's Congress (NPC) held on Thursday, the main focuses of this year's economic development lie in expanding consumption, technological innovation, continuous opening-up, more proactive and efficient macro policy that covers both fiscal and monetary, as well as commerce and trade.

Main focuses

China will soon establish a national venture capital guidance fund in a bid to strengthen the development of innovative enterprises, Zheng Shanjie, head of the National Development and Reform Commission (NDRC), said at the Thursday press conference, elaborating on the top economic planner's next steps to implement the tasks outlined in the Government Work Report submitted to the NPC for deliberation on Wednesday.

"The fund is expected to attract local government and private investment of nearly 1 trillion yuan ($138.15 billion), and will focus on cutting-edge areas including artificial intelligence (AI), quantum technology, hydrogen energy, and energy storage," said Zheng.

Industries including biomanufacturing, quantum technology, embodied AI, and 6G technology that are mentioned in the Government Work Report were also covered by the fund.

The new fund is designed to address common funding shortages faced by tech firms in their early stages, effectively leverage venture capital to support technological innovation, accelerate the commercialization of major sci-tech achievements, enhance technological self-reliance, and develop new quality productive forces, CCTV News reported on Thursday, citing an official from NDRC.

"The development of new quality productive forces is a key point for China to transform from rapid growth to a stage of high-quality growth," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Thursday.

Zheng also noted that the NDRC will issue specific plans to promote the withdrawal of backward and inefficient production capacity, expand the supply of medium and high-end production capacity, and make the supply side better adapt to changes in market demand.

Wu Qing, chairman of the China Securities Regulatory Commission, said at the press conference that the capital market has a unique and important supporting role in promoting industrial and technological innovation. 

"The greater the number and stronger the technological innovation enterprises, the stronger the attraction and vitality of the capital market and the ability to create value for investors," said Wu.

In addition to new drivers, giving full play to the three driving forces of economic growth - investment, consumption, and exports - is also important for supporting economic growth.

In terms of consumption, Zheng announced at the press conference that an action plan to boost consumption will soon be released and implemented.

Meanwhile, the coordination of fiscal and financial policies will be strengthened to boost consumption, by introducing two new loan interest subsidy policies to stimulate consumer demand, Lan Fo'an, Minister of Finance of China, said at the Thursday press conference.

"At the same time, this year will see increased incentives and subsidies for local governments to guide them in improving the consumption environment and optimizing supply. Additional central fiscal funds will be allocated to encourage greater local investment, supporting the promotion of new consumption forms, models, and scenarios," said Lan.

The Ministry of Commerce (MOFCOM) will also introduce more practical and effective measures to expand consumption, which will be integrated with improving people's livelihoods, while balancing goods consumption and service consumption, Wang Wentao, minister of MOFCOM, said at the press conference.

The trade-in program will be strengthened and expanded, while the range of subsidized categories for purchases will be broadened, said Wang.

As for exports, new support policies will be introduced in a timely manner as needed to stabilize foreign trade in 2025, Wang said, adding that trade in services will be a new growth point.

"We will fully implement the negative list for cross-border trade in services, launch the construction of demonstration zones for innovative development of trade in services, and build a number of demonstration zones for comprehensive reform of international trade," said Wang.

As for fiscal and monetary policy, Pan Gongsheng, governor of the People's Bank of China, said at the press conference that the central bank will cut the reserve requirement ratio (RRR) and interest rate based on the domestic and international economic and financial situation and financial market conditions this year. 

"Currently, the average RRR for financial institutions stands at 6.6 percent, leaving room for further reduction. Additionally, there is potential to study lowering the interest rates on structural monetary policy tools," said Pan.

Efforts will also be made to further expand the scale of relending for technological innovation and upgrading, broadening the coverage of policy support, Pan noted.

Confidence remains

"These specific measures and policies are designed to help achieve the GDP growth target set for 2025 at around 5 percent, while stabilizing market expectations and boosting development confidence," Yang said.

"Achieving the economic growth target of around 5 percent this year is well-grounded and assured, and we are fully confident in it," said Zheng, citing China's institutional advantages, vast market potential, and dynamic economic entities.  

The GDP growth target of around 5 percent for 2025 is in line with China's conditions and current development trends, which can be achieved, though it will require consistently strenuous efforts, Shen Danyang, head of the Government Work Report Drafting Team and director of the State Council Research Office, said at a press conference in Beijing on Wednesday.

"The overall macro policy mentioned in the 2025 Government Work Report has room for expansion, which is expected to defuse external shocks and ensure the smooth operation of China's economy," Yang Chang, chief analyst of Zhongtai Securities Co, told the Global Times on Thursday.

Measures to tackle difficulties

"The international environment remains complex and volatile, and external uncertainties continue to emerge. Against this backdrop, setting a growth target of around 5 percent plays a crucial role in stabilizing market expectations and boosting development confidence," Jiang Haoran, chairman of Cashway Fintech Co Ltd., also member of the National Committee of the Chinese People's Political Consultative Conference, told the Global Times on Thursday.

Wen Bin, chief economist of China Minsheng Bank, also told the Global Times on Thursday that given that this year's external environment has become more complex and challenging, achieving a target of 5 percent that is on par with last year's will not be easy and will require arduous efforts.

"While recognizing our achievements, we are keenly aware of the problems and challenges that confront us," read the Government Work Report.

However, analysts remain confident as the measures and policies announced and anticipated to be released can help tackle the difficulties and challenges facing China's economic growth, especially external factors.

Yang noted that the 2025 Government Work Report expanded on content related to external challenges compared to in 2024, which fully shows that the government attaches great importance to the external situation in its work.

"An increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science, and technology. Global economic growth lacks steam, unilateralism and protectionism are on the rise, the multilateral trading system is experiencing disruptions, and tariff barriers continue to increase," read the report.

In terms of tariff barriers, Wang also said at the press conference that in response to the unilateral tariffs initiated by the US, China has taken necessary countermeasures. "If the US goes further down the wrong path, we will accompany it to the end," said Wang.

Wang also noted that the tariffs imposed by the US on China are a typical example of harming others and not serving itself. There is no winner in a trade war, protectionism has no way out, and the unilateralism and bullying actions of the US go against the trend, causing widespread concern and opposition from the international community.