PM Li Qiang: China takes a series of steps to tackle turmoil in 2025

China’s economy in 2025 grew by 5 percent, the same as 2024. In total, China’s GDP reached RMB 140.18 trillion in 2025, or USD 20.05 trillion. ‘2025 was a truly remarkable year. In recent years, it’s rare to face such heavy and complex situations, where external shocks and challenges are intertwined with domestic difficulties and tough policy choices,’ Li Qiang said. Since the second quarter of 2025, the government implemented a range of measures to stabilise the job and economy, particularly to counter the impact of higher U.S. tariffs. ‘Externally, the world is undergoing changes, turmoil, and growing instability. Unilateralism and protectionism are rising while economic and trade issues are becoming politicised and shadowed by an overly expanding notion of national security,’ he added. ‘Multilateralism and free trade have also suffered serious declines.’ ‘Global economic growth is lacking momentum. At the same time, hegemonies and power politics pose greater threats, presenting serious challenges to the international economic and trade order as geopolitical risks rise due to prolonged regional conflicts,’ he explained. ‘Domestically, there are also problems such as a mismatch between strong supply and weak domestic demand, investment in the property sector continuing to fall, infrastructure investment growth turning negative, manufacturing investment slowing, and overall investment facing downward pressure.’ ‘Meanwhile, consumption growth remains weak and prices are at relatively low levels. Some firms face increasing difficulties in production and operations, unhealthy competition remains a prominent issue and market expectations are weak,’ Li Qiang said. ‘Moreover, emerging industries are not mature yet; job creation and income growth face difficulties; reducing carbon emissions and pollution are also very challenging.’ ‘Some local governments face serious budget imbalances, which compound difficulties in driving economic and social development while addressing debt problems. The property market remains in an adjustment phase, so risks and potential hazards persist in several key areas,’ Li Qiang said. ‘Nevertheless, Li Qiang reassured that the conditions and long-term growth trends of China’s economy have not changed and that the resilience of China’s development as a major country will become stronger.’ ‘As breakthroughs in technology and industrial transformation are achieved, China has built advantages in several fields. With growing deficiencies in global governance, demand for public goods provided by China is also increasing,’ he said. ‘Overall, China is seen to have many positive factors that create a conducive environment and broaden economic and trade cooperation.’ ‘Regarding human resources, China is said to have more than 80 million specialised professionals, including more than 10 million R&D personnel. In addition, China produces more than 5 million STEM graduates annually.’ ‘The central government sets the urban unemployment rate at around 5.5 percent, considering overall employment and substantial structural pressures.’ ‘Meanwhile, CPI is targeted to rise around 2 percent, making it reasonable to guide expectations for producers and consumers.’ ‘The government also sets a target to reduce carbon dioxide emissions per unit of GDP by about 3.8 percent.’