The 14th National People’s Congress (NPC) of China, the country’s national legislature has wrapped up its lawmaking business for the current year.
The NPC is China’s highest policy and lawmaking organ, and the obligations of the body since inception in the early 1950s have been the staying power that piloted China’s growth and advancement over the years. The annual legislative session is always the fulcrum of the country’s policy making, and this year, it didn’t disappoint in the constitutional mandate to formulate policies for the sustainable growth of the Chinese economy in broad facets.
During the 2025 session, Premier Li Qiang delivered a government work report. The document highlighted the country’s main goals, tasks, and policy measures for 2025. They are in various aspects of the country’s governance regime, including:
*5% GDP growth*
China targets an economic growth rate of around 5% in 2025, according to the government work report.
The report also outlines an array of other key development goals for this year, including a surveyed urban unemployment rate of around 5.5%, over 12 million new urban jobs, and an around 2% increase in the consumer price index.
*4% deficit-to-GDP ratio*
China sets a target of around 4% for its deficit-to-GDP ratio for this year, an increase of one percentage point over last year.
*More treasury bonds*
China will issue a total of 1.3 trillion yuan (US$182 billion) of ultra-long special treasury bonds in 2025, up 300 billion yuan from last year. It will also issue 500 billion yuan of special treasury bonds to support large state-owned commercial banks in replenishing capital.
*Special-purpose local bonds*
China plans to issue 4.4 trillion yuan of local government special-purpose bonds in 2025, an increase of 500 billion yuan over last year.
The funds raised from these bonds will be mainly used for construction investment, land acquisition and reserve, purchase of commodity housing stock, and settlement of overdue payments owed by local governments to enterprises.
*Property, stock markets policy*
China will refine and develop new structural monetary policy instruments to provide stronger support for sound development of the real estate sector and the stock market, for scientific and technological innovation, green development, the boosting of consumption, and for private businesses and micro and small enterprises.
*Boosting consumption*
China will launch special initiatives to boost consumption in 2025, including issuing ultra-long special treasury bonds of 300 billion yuan to support consumer goods trade-in programs.
*National security capacity building*
China will put ultra-long special treasury bonds to good use, increase ultra-long-term loans and other types of financing support, and strengthen top-down organization and coordination to ensure greater support for the implementation of major national strategies and security capacity building in key areas.
*Future-oriented industries*
China will advance integrated and clustered development of strategic emerging industries, carry out demonstration initiatives on the large-scale application of new technologies, products, and scenarios, and promote safe and sound development of commercial space, the low-altitude economy, and other emerging industries.
The country will also establish a mechanism to increase funding for industries of the future and foster industries such as biomanufacturing, quantum technology, embodied AI, and 6G technology.
*Key manufacturing chain boost*
China will accelerate the high-quality development of key industrial chains in the manufacturing sector and step up efforts to advance industrial foundation reengineering and major technology and equipment research.
*Large-scale AI models*
Under the AI Plus initiative, China will work to effectively combine digital technologies with the country’s manufacturing and market strengths. The country will support the extensive application of large-scale AI models and vigorously develop new-generation intelligent terminals and smart manufacturing equipment, including intelligent connected new-energy vehicles, AI-enabled phones and computers, and intelligent robots.
*Free preschool education*
China will promote free preschool education in a phased way as part of the country’s efforts to build a high-quality education system. Meanwhile, the country will promote high-quality, well-balanced development of compulsory education, and increase the enrollment capacity of senior high schools.
*Enterprise-related regulation*
Special initiatives will be launched to regulate enterprise-related law enforcement, with a focus on tackling arbitrary charges, fines, inspections, and seizures. China will take resolute steps to prevent unauthorized cross-jurisdictional and profit-driven law enforcement.
*Foreign trade and investment*
China will work toward stabilizing foreign trade, vigorously encourage foreign investment, pursue solid progress in high-quality Belt and Road cooperation, and deepen multilateral, bilateral, and regional economic cooperation.
*Property transaction restrictions*
China will introduce city-specific policies on adjusting and reducing property transaction restrictions, so as to continue efforts on stemming the downturn and restoring stability in the real estate market.
The country will also intensify efforts to redevelop urban villages and renovate old and dilapidated houses. It will fully tap into potential demand for first homes and better housing.
*Efficient medicine procurement policy*
China will refine the policy for centralized medicine procurement and enhance quality evaluations and oversight to boost public confidence in medicine.
*Birth rate booster policy*
China will formulate policies on boosting birth rates, and provide childcare subsidies. The country will also vigorously develop integrated nursery and childcare services, and increase public-interest childcare services.
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