China is sending a clear message to former President Trump as it aims for strong economic growth and defies U.S. tariffs. The country has set a GDP growth target of around 5% for 2025. In the last quarter of 2024, China's economy expanded by 5.4%, leading to a full-year growth of 5%. This growth is supported by a record trade surplus of nearly $1 trillion in 2024, with manufacturing increasing by 6%. Exports played a significant role, contributing 30.3% to the GDP growth.
China has shown it won't back down from U.S. tariffs. The government is prepared to fight "any type of war" with the U.S. It retaliated by imposing a 15% tariff on U.S. agricultural products. China's leaders have warned the U.S. against undermining their interests. They have also aligned with Canada and Mexico against Trump's policies, showing a united front. Despite the ongoing rivalry, Chinese legislators avoid discussing concerns related to the trade war.
To support its economy, China is increasing its fiscal deficit target to 4% of GDP for 2025. The country plans to issue RMB 3 trillion in special treasury bonds and expand policies for equipment renewal and consumer goods trade-ins. They are also pledging stronger fiscal and monetary support to boost domestic demand and aim to create over 12 million new urban jobs in 2025. GDP growth is expected to reach 5.00% by the end of 2025, reflecting ongoing economic resilience.
On the international front, China is reaffirming its commitment to attract foreign investment. It emphasizes maintaining an open economy while focusing on boosting domestic consumption and innovation. High-tech manufacturing and the digital economy are key areas of focus, along with the Belt and Road Initiative to expand global influence.
China's military posture remains strong. Defense spending is set to grow by 7.2% in 2025, with advancements in naval capabilities and weapon systems. Overall, China is projecting strength and asserting its rise as an unstoppable force in global affairs.
