Beijing to offer higher consumer subsidies to reach 5% growth in face of Trump tariffs

China has set its GDP target for 2025 at "around 5%", a figure presented by the premier, Li Qiang, at the opening session of the National People's Congress (NPC) in Beijing yesterday.

- Amy Hawkins

Li announced the growth target in the annual government work report, which also outlined plans to stabilise economic growth by boosting domestic demand and creating 12m urban jobs.

Economists believe that the 5% target, which is in line with 2024's figure, will be challenging. China reached its target last year with a last-minute export boom. Exports surged by 10.7% in December, pushing China's trade surplus to a record $1tn (£777bn). But with a new US-China trade war as Donald Trump settles into his second term in the White House, this year it will be harder to boost the economy through trade.

This week, Trump doubled tariffs on most Chinese goods to 20%, with some duties reaching 45%. China swiftly announced retaliatory tariffs of its own, imposing duties of up to 15% on agricultural goods.

"The target is very ambitious," said Alicia Garcia-Herrero, the chief economist for Asia Pacific at investment bank Natixis. She said it was "non-reachable" without a bigger stimulus, especially in light of increased tariffs.