China Vows New Measures To Meet 5% Growth Target

China’s top policymakers have promised fresh steps to support the economy, showing confidence in reaching their full-year growth goal of around 5% despite rising external pressures like U.S. tariffs.

New Policy Support Coming Soon

At a major press conference held on Monday, Zhao Chenxin, Vice Chair of the National Development and Reform Commission (NDRC), announced that China will introduce new policies in the second quarter of this year.
He emphasized that the government has enough reserves and tools to ensure the economy stays on track.

“We are confident that China will meet its growth target for the year,” Zhao said, adding that additional support measures will be rolled out as needed based on the changing domestic and global situation.

The government’s main focus will be to maintain economic stability, boost employment, and encourage development, he said. Zhao also highlighted that China’s exports continued to grow in the first quarter, helping to support the broader economy.

Central Bank Promises More Flexibility

Zou Lan, Deputy Governor of the People’s Bank of China (PBOC), also spoke at the conference. He said that China’s financial system remains strong and resilient, even as global markets face volatility.

Zou confirmed that the PBOC will adjust policies like the Reserve Requirement Ratio (RRR) and interest rates “at the appropriate time” to support economic growth.

He also said the central bank would continue its “moderately loose” monetary policy stance to ensure businesses, especially those involved in foreign trade, have enough access to financing.

Maintaining the stability of the Chinese yuan remains a top priority for the central bank, Zou added. He reassured markets that the recent swings in U.S. bond yields had only a limited impact on China’s foreign exchange reserves.

Job Market Faces Pressure, but Outlook Remains Positive

Meanwhile, a senior official from the Human Resources and Social Security Ministry said that the country’s job market remained generally stable in the first quarter.

China created 3.08 million new urban jobs between January and March, showing solid progress despite some challenges.

However, officials acknowledged that rising U.S. tariffs on Chinese goods were adding fresh pressure to the labor market, especially in manufacturing and trade-related sectors.

Still, authorities remain confident that they can maintain overall job market stability through supportive policies and new employment initiatives.

Commerce Ministry to Boost Exports and Imports

The Vice Commerce Minister also highlighted the resilience of China’s export sector, noting steady growth in shipments even in April.
Looking ahead, the ministry plans to actively expand imports to balance trade and support domestic consumption.

To help Chinese companies compete better globally, the Commerce Ministry will launch new initiatives, including setting up a special credit tool for financing large equipment exports.
They also plan to assist companies in finding new overseas markets, helping to reduce reliance on traditional markets like the U.S.

AI Industry Shines Amid Global Uncertainty

Despite facing external headwinds, one area where China continues to shine is artificial intelligence (AI).

Officials shared that China’s AI industry exceeded 700 billion yuan in value, marking a strong year-on-year growth.

The sector is seen as a key part of China’s long-term strategy to modernize its economy and maintain global competitiveness.

Trade War Adds to Challenges

Monday’s press conference came against the backdrop of rising tensions between China and the United States.

Earlier in April, U.S. President Donald Trump imposed tariffs as high as 245% on a wide range of Chinese goods. In response, Beijing announced retaliatory tariffs of up to 125% on U.S. imports.

This escalating trade conflict has further clouded China’s economic outlook, which was already facing slower growth compared to previous years.

However, Chinese officials at the press conference struck an optimistic tone, stressing that the government had enough policy room to handle these external shocks and keep the economy stable.

Conclusion

China’s leadership is sending a clear message: they are ready to take action and have the tools to navigate a complex global environment.
While challenges like the U.S. trade war and a pressured job market remain, policymakers are confident that through timely measures, China can maintain stability and meet its 5% growth target for 2025.