BEIJING: Lawmakers at the third session of the 14th National People's Congress (NPC) have reviewed a government report that says China...
BEIJING: Lawmakers at the third session of the 14th National People's Congress (NPC) have reviewed a government report that says China's authorities will continue to strengthen national defense, modernize the economy, and promote innovation in 2025. Chinese State Council Premier Li Qiang delivered a report at the opening of this significant political event.
TASS has compiled the key provisions of the report.
Strengthening army
Following a tradition, the lawmakers heard a report on the work of the government and the implementation of the plan on the country’s socio-economic development over the past year, as well as reports on the state of the central and local budgets. In addition, the report made public the main targets for 2025.
According to the published documents, the Chinese authorities plan to step up defense mobilization. For this purpose, they will increase military allocations by 7.2% (the same as in 2023 and 2024). As a result, the financing of the Chinese People's Liberation Army will amount to more than 1.78 trillion yuan (about $248-250 billion). This money will be paid "on a priority basis."
Development of equipment, industry of future
In connection with the policy of national modernization and the strategy of developing new productive forces, the authorities plan to pay special attention to the development of science and equipment in the current year, which marks the end of the 14th five-year plan period. It was announced that more than 398 billion yuan (approximately $56 billion) will be allocated from the budget for this purpose, which is 10% more than last year.
The GDP growth rate is expected to be close to 5%, just like in 2024. In order to achieve this, the Chinese authorities intend to integrate traditional industries as well as accelerate the development of so-called industries of the future. These include bio-manufacturing, quantum technologies, and a sixth-generation wireless communications technology. According to the report, as a result, the dynamics "taking into account the potential and the development factors" will be retained.
Ecological goals
The documents distributed at the session focus on the development of green and low-carbon economy. In doing so, the Chinese authorities are demonstrating their commitment to international obligations to combat climate change. In this regard, Beijing will develop relevant technologies and industries, as well as ensure a more fair distribution of resources.
Growth of budget deficit
The national budget deficit is expected to increase by one percentage point to 4% of GDP, or about 5.66 trillion yuan, or about $789 billion, in order to implement the country's strategic goals. The issue of public debt will remain pressing: the country's debt obligations will increase by 32% to 11.86 trillion yuan, or $404 billion.
Against the background of the growth of this indicator, the authorities promise to effectively eliminate the risks arising from the debt obligations of the regional administrations, as well as to contribute to the timely settlement of their debts.
Stimulating consumption
The Chinese parliament continues to view stimulating consumption as the key component of national development. Domestic demand will continue to be the main driver and "stabilizing anchor" of economic growth.
Against the backdrop of ambitious plans to stimulate the consumption sector, the inflation target for 2025 will be 2%. The prices in the country will be kept "at the manageable level", "in line with the economic growth" and with maintaining the balance of international payments.
Countering hegemony and protectionism
According to the report, Beijing will adhere to an independent peaceful foreign policy in interaction with other countries. The principles of expanding opening-up to the outside world, countering hegemony and the coercive policies of separate countries will remain the same. The Chinese authorities will continue to oppose protectionism and advocate equality and justice.
The report stressed that the Chinese authorities "clearly recognize the problems and challenges" caused by external factors and major changes in the international arena. The authorities recalled that unilateral measures and customs barriers can negatively impact trade relations.
Yuan’s stability
In order to stabilize economic cooperation with other countries, the People's Bank of China will ensure the stability of the yuan "at a reasonable and balanced level," according to the report. To this end, it is planned to "revise financial instruments."
Promoting free trade
The development of free trade will also be among China's national policy priorities in 2025. According to the report, China intends to strengthen contacts with the Association of Southeast Asian Nations (ASEAN), promote the process of joining the Digital Economy Partnership Agreement (DEPA) and the progressive agreement on the Trans-Pacific Partnership, and "build a multilateral system based on the WTO."
The abovementioned policy requires "all kinds of incentives for foreign investment" and maintaining China's openness at the highest level. This will be done "regardless of changes in the external environment."
Development under party’s management
The report emphasized that the entire process of China's development should always be carried out "under strong leadership" and taking into account the "overall strategy" of the Central Committee of the Chinese Communist Party chaired by Xi Jinping. In contacts with Taiwan, China will maintain its firm stance against separatist elements in Taipei and attempts by outsiders to interfere in the mainland's cooperation with the island. As for Hong Kong and Macao, the Chinese authorities intend to implement the "one country, two systems" policy, which allows for a high degree of self-government in these special administrative regions.
Quorum
According to Chairman of the Standing Committee of the National People's Congress Zhao Leji, 2,880 out of 2,929 lawmakers attended the session this time. "Forty-nine deputies were absent, but there is a quorum," he added.
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