Government Work Report 2025: China Announces Stabilization Measures, Holds off on Major Stimulus

Key Takeaways

• China kept its GDP growth target consistent with last year and slightly lowered its CPI target, an acknowledgement of persistent economic challenges and deflation concerns.
• The country also set its highest deficit-to-GDP ratio in over three decades, indicating a willingness to increase public spending.
• China is holding off on unleashing significant stimulus amid deep-seated structural issues and escalating trade tensions with the United States.