BEIJING, March 5, (V7N) — China has set an economic growth target of around 5% for 2025, according to an official document seen by AFP on Wednesday, signaling Beijing's ambition to stabilize its economy amid a worsening trade war with the United States.

The target comes as China grapples with a persistent property sector debt crisis, weak consumer demand, and high youth unemployment. Experts warn that achieving 5% growth will be difficult given these economic headwinds.

The government also pledged to:Create 12 million new urban jobs, Push for 2% inflation in 2025. Thousands of delegates gathered for the opening session of the National People's Congress (NPC), where Premier Li Qiang is expected to formally announce the country's economic roadmap.

The trade conflict with Washington has intensified, with US President Donald Trump imposing new tariffs on Chinese imports this week, following similar measures last month. These tariffs affect hundreds of billions of dollars in trade, further straining relations between the world's two largest economies.

China responded on Tuesday by announcing retaliatory tariffs of up to 15% on key US agricultural exports, including soybeans, pork, and wheat, starting next week.

"China will fight a trade war to the bitter end," Beijing declared, vowing further action if necessary. Economists suggest that China's current economic support measures are insufficient to boost recovery. Analysts expect: A fiscal deficit increase to 4% of GDP (up from 3%). Record-high issuance of special government bonds to finance stimulus efforts

Despite these efforts, many experts believe stronger stimulus measures will be necessary to revive domestic consumption and industrial growth. The NPC is also expected to release details on China’s defense spending for 2025, which remains a major point of tension with the United States. China continues to increase military pressure on Taiwan, dispatching warplanes around the self-governed island. The move follows Trump’s recent proposal to halve the military budgets of the US, Russia, and China, which Beijing has rejected. A Chinese foreign ministry spokesperson recently stated that any cuts in military spending should start with Washington.

With economic and geopolitical tensions on the rise, China faces a difficult balancing act between stimulating growth and managing external pressures. The coming months will test Beijing’s ability to navigate a challenging global economic environment while maintaining internal stability.

END/BUS/RH/