On Thursday, China’s finance minister indicated that additional stimulus measures could be forthcoming beyond what was announced during this week’s annual parliament meeting if the economy, impacted by tariffs, strays from its target of around 5% growth.
Lan Foan, addressing reporters alongside other officials the day after Premier Li Qiang’s annual speech to lawmakers, remarked that China possesses substantial policy flexibility to confront any domestic and international challenges to economic growth.
During Wednesday’s announcement, the government revealed an increase in fiscal resources for 2025 compared to the previous year, aiming to maintain economic momentum while contending with a trade conflict with Washington.
The tariff hikes imposed by U.S. President Donald Trump are putting pressure on China’s vast industrial sector amidst ongoing weak consumer demand and a struggling, debt-laden property market, increasing the economy’s vulnerability.
Zheng Shanjie, China’s state planner, expressed confidence in achieving the annual growth target despite rising external uncertainties and lackluster domestic demand.
The country plans to initiate major projects across critical sectors like railroads, nuclear energy, water conservation, and other essential industries to draw in private investment, Zheng stated.
