The Chinese government announced its latest economic growth (GDP) target at 4.5–5%, marking the lowest level since 1991 amid multiple crises including a real estate downturn, population decline, and trade war pressures with the United States. Meanwhile, Premier Li Qiang outlined the 15th Five-Year Plan focusing on innovation, clean energy, and stimulating household consumption.
At China's key political gathering, the "Two Sessions" meeting which began Wednesday (4 Mar), the government released a 46-page work report. Premier Li Qiang stated this year's economic growth target at 4.5%–5%, a downward adjustment from the "around 5%" target in 2023, making it the lowest official target since 1991, excluding 2020 when no target was set due to the COVID-19 pandemic.
The Chinese government revealed parts of the 15th National Economic and Social Development Plan, emphasizing accelerated investment in advanced technology industries and scientific research, modernizing manufacturing to reduce reliance solely on exports, preparing over 100 key projects in science, transportation, and energy, and focusing on reducing carbon emissions while becoming a leader in renewable energy.
The lowered economic target reflects the harsh realities China faces, including a real estate crisis—formerly accounting for a third of the economy—that remains sluggish, impacting local government revenues and employment, as well as social challenges from an aging population driven by declining birth rates and a shrinking workforce.
China is also affected by an energy crisis and geopolitical conflicts, including the U.S.-Israel versus Iran war, which has cut off access to cheap oil sources, and shortages of Venezuelan oil following U.S. intervention. Additionally, trade war pressures from U.S. President Donald Trump's tariff measures have heavily impacted exports. Trump is scheduled to visit China in April to meet President Xi Jinping.
Policy analyst Zhou Zheng from China Macro Group said the target "reflects reality" as China must address multiple complex issues simultaneously. Georgetown University researcher Ning Leng cautioned that close attention is needed on actual figures, as other data suggest the overall economy may be weaker than reported, particularly with domestic consumption still not fully recovering.
Nonetheless, the Chinese government remains confident in its transition to clean energy, emphasizing that China has significantly reduced its reliance on fossil fuels through its shift toward renewable energy over recent years.
,BBC