By Qaiser Nawab, Chairman of the Belt and Road Initiative for Sustainable Development (BRISD)
China’s annual legislative session, the National People’s Congress (NPC), convened on March 5, 2025, where Premier Li Qiang delivered the Government Work Report outlining the nation’s strategic priorities for the coming year. The report emphasizes economic stabilization, technological innovation, environmental sustainability, and national defense, reflecting China’s commitment to sustainable development amid global challenges.
In response to a sluggish global economy, China has set a GDP growth target of around 5% for 2025. This cautious approach acknowledges external challenges, including ongoing trade tensions with the United States, slowing global demand, and structural transformations within China’s economy. The government recognizes the need for stability rather than rapid expansion, focusing on quality growth rather than sheer speed.
To stimulate domestic consumption, the government plans to raise the fiscal deficit ratio to 4%, allocating funds to programs that encourage consumer spending. This strategy aims to mitigate the impacts of volatility in the global market and foster internal economic resilience. Additionally, the government is set to increase investment in infrastructure, particularly in high-speed rail, clean energy, and smart cities, to create employment opportunities and sustain economic momentum.
China’s economic strategy also includes support for private enterprises. Recognizing their role in job creation and innovation, the government is expected to introduce more favorable policies, including tax cuts and streamlined regulations, to encourage entrepreneurship. A stable business environment will ensure that China remains a global economic powerhouse while adapting to changing global dynamics.
A significant focus of the report is on enhancing China’s self-reliance in science and technology. Over the past decade, the country has faced increasing restrictions on access to advanced foreign technologies, particularly from the United States and its allies. In response, China has doubled down on efforts to develop indigenous capabilities in critical sectors, including semiconductor manufacturing, artificial intelligence (AI), quantum computing, and space exploration.
The government plans to bolster research in core technological fields by increasing funding for key innovation hubs and research institutions. Additionally, China will encourage state-owned enterprises and private firms to collaborate on cutting-edge projects, ensuring that the country remains competitive in the global technology race.
Artificial intelligence is a particularly notable area of focus. China aims to integrate AI into various sectors, from healthcare and finance to manufacturing and urban planning, to enhance efficiency and productivity. Robotics and automation are also prioritized, with the government supporting initiatives that drive industrial transformation.
A key theme of the 2025 Government Work Report is improving the quality of life for Chinese citizens. The government is committed to enhancing public services, including healthcare, education, and social welfare programs. The expansion of universal healthcare coverage and the strengthening of rural medical facilities aim to bridge disparities between urban and rural populations.
In the education sector, China is investing in vocational training and higher education to equip its workforce with the skills needed for a modern economy. Special emphasis is being placed on STEM (Science, Technology, Engineering, and Mathematics) education, ensuring that China continues to produce world-class talent in critical fields.
Social welfare reforms are also being pursued to address issues such as aging population challenges and income inequality. The government is working on pension system improvements and housing affordability measures to enhance social stability and well-being.
China’s 2025 Government Work Report presents a comprehensive strategy to navigate current global challenges while maintaining a focus on sustainable development. These initiatives not only aim to bolster China’s domestic growth but also have the potential to positively influence global development.
China’s focus on financial stability and trade diversification will enhance the resilience of BRI investments. By promoting stronger economic ties with partner nations, China can create mutually beneficial opportunities that drive global development. The expansion of trade routes, digital connectivity, and cultural exchanges will further strengthen China’s role as a key player in international economic cooperation.
About Author: Mr. Qaiser Nawab is the Chairman of the Belt and Road Initiative for Sustainable Development BRISD and can be reached at qaisernawab098@gmail.com
