Must-Read China Economic News (March 1-6)
From 2025 growth target to annual session of national legislature, as well as China's countermeasures following new U.S. tariff hikes -- take a look at the latest newsworthy things in China's economy.
Greetings and welcome to the latest edition of Peking Ensight! We're thrilled to have you join us once again as we navigate the ever-evolving landscape of the Chinese economy.
⭐Under the Spotlight
China targets economic growth of around 5 pct in 2025
China has set an economic growth target of around 5 percent for 2025, reflecting a sound economic outlook despite increasing global uncertainties, as policymakers are determined to secure steady recovery through decisive and effective measures.
Premier Li Qiang on March 5 announced the goal when delivering the government work report to the annual session of the National People's Congress for deliberation. The report outlines an array of other key development goals for this year, including a surveyed urban unemployment rate of around 5.5 percent, over 12 million new urban jobs, and an around 2 percent increase in the consumer price index.
The country achieved economic growth of 5 percent in 2024 as an impactful policy package, along with other pro-growth measures, helped fuel strong economic momentum.
As 2025 marks the final year of China's 14th Five-Year Plan (2021-2025) period and is crucial for crafting the next five-year blueprint, observers believe that the government policies will not only drive sustained growth this year but also lay the groundwork for the country's modernization drive in the long run.
Officials explain why China's 2025 growth target is attainable
China's economic growth target of around 5 percent for this year is achievable, as it aligns with the country's actual conditions and the laws governing economic development, an official said on March 5.
Achieving this target, however, will not be easy and will require tremendous efforts, said Shen Danyang, head of the group responsible for drafting this year's government work report, which was submitted to the national legislature for deliberation earlier in the day.
China's momentum of economic recovery and growth continues to strengthen, said Shen, director of the Research Office of the State Council, at a press conference while outlining key factors that will support the country in achieving its 2025 growth target.
China has introduced a package of new policies since September last year, leading to a notable economic rebound, with GDP growth rising to 5.4 percent in the fourth quarter of 2024, he noted.
Since the beginning of 2025, key indicators such as the purchasing managers' index for the manufacturing sector, property sales, and container throughput have all signaled a trend of steady economic growth in China, the official said.
China's national legislature opens annual session
China's national legislature on March 5 started its annual session. Nearly 3,000 deputies attended the third session of the 14th National People's Congress (NPC), held at the Great Hall of the People in Beijing.
Chinese President Xi Jinping and other leaders including Li Qiang, Wang Huning, Cai Qi, Ding Xuexiang, Li Xi and Han Zheng were seated at the rostrum.
Premier Li Qiang delivered a government work report. Reviewing the work of 2024, he said that in the face of complex and challenging developments marked by mounting external pressures and growing domestic difficulties, China has accomplished the main goals and tasks for economic and social development.
"While recognizing our achievements, we are keenly aware of the problems and challenges that confront us," he said.
Xi urges Jiangsu to play major role in national development
Chinese President Xi Jinping on March 5 urged east China's Jiangsu Province, an economic powerhouse, to play a major role in the country's overall development.
Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, made the remarks when taking part in a deliberation with his fellow lawmakers from Jiangsu during the third session of the 14th National People's Congress (NPC), China's national legislature.
Jiangsu should take the lead in integrating technological and industrial innovation, advancing in-depth reform and high-standard opening up, and implementing major national development strategies, Xi said, adding that it should set an example in pursuing common prosperity.
After listening to several NPC deputies' presentations, Xi said technological innovation and industrial innovation constitute the fundamental pathways for developing new quality productive forces.
To advance technological innovation, it is essential to modernize the industrial system and coordinate education, science and technology, and talent cultivation, Xi said, urging more sci-tech advances to be attained and turned into concrete productive forces.
⭐China firmly opposes U.S. new tariff move
China to impose additional tariff on some U.S. products
China will impose additional tariffs on some products imported from the United States, effective from March 10, the Customs Tariff Commission of the State Council said on March 4.
The statement comes after the U.S. imposition of an additional 10-percent tariff on products imported from China, effective from March 4.
An additional 15-percent tariff will be imposed on imported chicken, wheat, corn and cotton originating from the United States, according to a statement from the commission.
Sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products will be subject to an additional 10-percent tariff.
China is strongly dissatisfied with and firmly opposes the U.S. decision to impose an additional 10-percent tariff on goods imported from China again, a spokesperson for the Ministry of Commerce said on the same day.
China initiates legal action against U.S. via WTO dispute settlement mechanism
China has initiated legal action against the United States under the World Trade Organization (WTO) dispute settlement mechanism regarding the latter's latest tariff increase on Chinese products, the Ministry of Commerce said on March 4.
Noting that the unilateral imposition of tariffs by the United States violates WTO rules and undermines the foundation of China-U.S. economic and trade cooperation, the ministry said China expresses strong dissatisfaction with and firm opposition to the U.S. move.
China will resolutely safeguard its legitimate rights and interests in accordance with WTO rules, and defend the multilateral trading system and the international economic and trade order, the ministry added.
The United States has announced that it will impose an additional 10-percent tariff on products imported from China, effective from March 4. This move follows an additional 10-percent tariff imposed by the United States on products imported from China in February this year.
China adds 10 U.S. firms to unreliable entity list
China decided on March 4 to add 10 U.S. firms, including TCOM, Limited Partnership, to the country's unreliable entity list and take corresponding measures against them.
China will prohibit the aforementioned companies from engaging in import and export activities related to China, and these companies will also be banned from making new investments within the country, according to a statement released by the Ministry of Commerce.
China adds 15 U.S. firms to export control list
China announced on March 4 that it has decided to add 15 U.S. entities that endanger its national security and interests to its export control list.
The export of dual-use items to these 15 firms, including Leidos, Gibbs&Cox, Inc., and IP Video Market Info, Inc., will be prohibited, while any ongoing related export activities must be stopped immediately, according to the Ministry of Commerce.
China launches anti-circumvention probe into imported optical fiber products from U.S.
China's Ministry of Commerce announced on March 4 that it has launched an anti-circumvention investigation into certain optical fiber products imported from the United States.
The products under the investigation are the Certain Cut-off Shifted Single-mode Optical Fiber, the ministry said in a statement, adding that the investigation period was 6 months starting from March 4, and may be extended under special circumstances.
⭐Key Macroeconomic Indicators
China's non-manufacturing PMI at 50.4 in February
China's economic recovery gathered momentum in February, with the purchasing managers' index (PMI) for both the manufacturing and non-manufacturing sectors revealing strong performances, experts said.
The PMI for China's manufacturing sector came in at 50.2 in February, up 1.1 percentage points from the previous month and bouncing back to the expansion zone, official data showed.
A reading above 50 indicates expansion, while a reading below 50 reflects contraction.
National Bureau of Statistics (NBS) statistician Zhao Qinghe said the PMI data in February was influenced by factors including enterprises resuming production after the Spring Festival holiday.
Compiled by Qiao H