China on track to achieve growth target for 2025, say experts and business leaders
China is expected to achieve its annual growth target of around 5 percent this year and present more business opportunities for both domestic and foreign companies, with its intensified efforts to spur innovation and further boost consumption and investment, economists and business leaders said at the "CEO: Grow with China" Roundtable hosted by China Daily on Friday.
"China's economy is right on track to meet its preset annual growth target of around 5 percent for 2025, supported by its ultra-large domestic market, strong innovation capability, as well as a string of supportive policies aimed at boosting consumption and emerging industry investment," said Lin Shen, a researcher at the Chinese Academy of Social Sciences' Institute of World Economics and Politics.
Government policies aimed at fostering innovation and developing emerging industries have been steadily implemented. Fiscal policies and other innovation-friendly measures will play a crucial role in sustaining economic growth throughout the year, Lin said.
Lin highlighted the structural shifts in the economy, where new growth drivers are replacing old ones, and stressed that new quality productive forces, including AI-powered manufacturing, have begun to take hold. "Our new quality productive forces, coupled with AI empowerment, have integrated well with the manufacturing and the real economy. There will be significant progress in application scenarios."
"Even though there are certain geopolitical headwinds, we are still very optimistic about China's economic prospects this year as the country's fiscal and monetary policies go hand in hand," said Ole Gerdau, chief operating officer at Deutsche Bank China.
According to him, consumption will be the key driver of the economy, roughly contributing to two-thirds of China's growth this year. The trade-in program, for which funding has been doubled, is expected to have a positive impact on consumption.
Gerdau said the emergence of Chinese AI startup DeepSeek is changing people's perception about China's innovation strength and technological advancements. "This creates a wake-up moment for the world that now might be the time to invest in China. We expect this year to be the turning point where international investors are going to shift their focuses and have a higher allocation into the Chinese market," he said.
China is prioritizing new quality productive forces and enhancing financial services to enterprises in its economic agenda for the year, as policymakers announced recently the rollout of a raft of supportive measures aimed at creating new growth drivers for the world's second-largest economy.
The People's Bank of China, the country's central bank, said late on Thursday that it will reduce the reserve requirement ratio and interest rates as appropriate based on the domestic and international economic and financial situation as well as the performance of financial markets.
The A-share benchmark Shanghai Composite Index rose 1.81 percent to close at 3419.56 points on Friday, while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, jumped 2.8 percent to close at 2226.72 points.
The National Development and Reform Commission recently announced that it would establish a national venture capital guidance fund, with the goal of enhancing, strengthening and expanding innovative enterprises. The fund is expected to attract nearly 1 trillion yuan ($138 billion) in capital from local governments and the private sector.
The participants at the roundtable emphasized that emerging sectors like artificial intelligence have great potential in China, presenting new opportunities for enterprises.
China's AI-led innovation is also throwing up opportunities for businesses like Rolls-Royce, said Troy Wang, executive vice-president of Rolls-Royce Greater China.
"China's focus on innovation-driven growth is making it continue to be an important country for Rolls-Royce, and it's so much more than just a market for us," Wang said.
"Rolls-Royce just achieved a record year in 2024 in terms of business performance and we're confident about 2025," he said, adding that the company is building Beijing Aero Engine Services Co Ltd, a joint venture in Beijing, into a world-leading digitally enabled aeronautical engine repair and overhaul shop.
Rani Jarkas, chairman of Cedrus Group, said that the development of AI requires a large amount of electricity, chips, and applications, and China has it all. "Technology speaks for itself," he said.
"I think the innovation will continue and the opportunities will grow for Chinese companies going abroad and for foreign companies to come to explore the market and set up local units here," he said.
Huang Yanxiang, co-founder and CEO of Shanghai CarbonNewture and ESG expert, said the current wave of AI-led innovation in China is transforming industries by integrating AI with manufacturing, boosting efficiency, and giving rise to new business models. For CarbonNewture, this means deeply integrating AI into its carbon accounting platforms, improving data analysis and reporting capabilities to deliver more precise and actionable insights.
The roundtable was jointly organized by China Daily Institute for Corporate Communication and China Services Information Platform.
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SOURCE chinadaily.com.cn
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