China has set its GDP growth target for 2025 at “around 5%”, announced by Premier Li Qiang at the opening of the National People’s Congress (NPC) in Beijing on Wednesday.

Li presented the growth target in the government’s annual work report, which also laid out plans to stabilize economic growth through stimulating domestic demand and creating around 12 million new urban jobs.

Economists predict that hitting the 5% target, similar to 2024’s figure, will be challenging, given that China only barely met this goal last year due to a late surge in exports. China’s exports increased by 10.7% in December, propelling its trade surplus to a record $1 trillion. However, with the beginning of a new US-China trade war as President Donald Trump starts his second term in office, it will be more difficult to boost the economy through trade this year.

Trump has doubled tariffs on most Chinese goods to 20%, with some tariffs even reaching 45%. In response, China announced its own retaliatory tariffs, placing duties of up to 15% on agricultural goods. China’s main challenge for 2025 will be protecting its economy from the effects of this trade conflict.

Economists have advised policymakers to increase stimulus measures, particularly those that would put more money in consumers’ pockets to boost domestic demand. Li stated in the work report that the government aims to “make domestic demand the main engine and anchor of economic growth,” but provided few details on how this will be achieved, except for a promise to issue 300 billion yuan ($41.2 billion) in special treasury bonds to support consumer trade-in programs for goods like household appliances.

Brazil is more focused than ever on fostering domestic innovation and high-tech industries, which Chinese President Xi Jinping refers to as “new quality productive forces.” Li said the government will “establish a mechanism to increase funding for industries of the future” such as artificial intelligence and 6G. The government work report also stressed China’s “firm commitment” to the cause of unification with Taiwan.

The annual NPC session will continue until 11 March, with the Chinese People’s Political Consultative Conference, a high-level advisory body, also meeting in Beijing this week.