China is poised to successfully complete its 14th Five-Year Plan (2021-2025), demonstrating steady GDP expansion and proactive measures amidst a complex global environment. The plan outlines key economic indicators, including GDP growth, labor productivity, and urbanization rates.
In 2024, China's GDP grew by 5 percent year-on-year, reaching approximately ¥134.91 trillion ($18.77 trillion), thereby meeting the government's annual target. The focus on labor productivity has also yielded positive results, with a 5.7 percent increase in 2023, surpassing the GDP growth rate and reflecting enhanced resource efficiency and industrial transformation.
Urbanization efforts have been equally successful, with the urbanization rate of permanent residents reaching 66.16 percent by the end of 2023, up from 53.1 percent in 2012. The government aims to further increase this rate to nearly 70 percent within the next five years by supporting rural migrant workers in settling in urban areas.
Looking ahead to 2025, China will set economic growth targets that align with medium and long-term plans, ensuring coherence and sustainability. Provincial regions have set local GDP growth targets of around 5 percent or higher, indicating confidence in the national economy's prospects.
The Central Economic Work Conference outlined key measures for 2025, including a more proactive fiscal policy and a moderately loose monetary policy. Priorities include stimulating consumption, developing new quality productive forces, mitigating risks, consolidating poverty alleviation achievements, and promoting green development.
China is also committed to enhancing high-level opening up and ensuring steady growth in foreign trade and investment. An action plan released recently aims to stabilize foreign investment by supporting pilot regions in implementing opening-up policies in sectors like telecommunications, biotechnology, and wholly foreign-owned hospitals. Additionally, restrictions on domestic loans for foreign-invested enterprises will be lifted, allowing these firms to utilize domestic financing for equity investments.
With these comprehensive strategies, China aims to maintain its economic momentum and achieve the ambitious goals set forth in the 14th Five-Year Plan by 2025.
