CBN丨Highlights of press conference on economy at NPC session

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

China’s Annual Two Sessions 2025

China’s top economic officials held a press conference on Thursday afternoon as part of the Two Sessions, with heads of China’s economic planner, finance and commerce ministries, central bank and securities regulator attending.

China is fully confident in achieving the economic growth target of around 5 percent this year as there is solid foundation, support and guarantee, said Zheng Shanjie, head of the National Development and Reform Commission, the country’s top economic planner.

Zheng said China’s GDP target was the result of a “comprehensive and scientific” process, with “solid preparation” undertaken to come to the final number. There is new momentum driving growth, he added, citing the new industries and business modes which have contributed to 18 percent of China’s overall economy.

An increase to domestic spending remains a priority, Zheng said, pointing to a 300 billion yuan in ultra-long special treasury bonds will be allocated to support the trade-in program for consumer goods and equipment in 2025.

China will establish a national venture capital guidance fund in the near future with the aim of strengthening the development of innovative enterprises, Zheng added.

Commerce Minister Wang Wentao said the trade-in program have been “bright spots” for China’s consumer market in the past year, adding that the categories will be expanded to include smartphones, tablets, smart watches and other consumer electronics.

Meanwhile, new measures to promote consumption by foreign tourists will be implemented, Wang said, which include improving visa procedures and online payments methods.

Finance Minister Lan Fo’an said China has “reserved” enough of its tools to counter whatever uncertainties may come about in the external environment. He said the effects of last year’s stimulus package will be sustained, and new policies that are “stronger and more targeted” will be rolled out.

Spending on tech, he added, will exceed 1.2 trillion yuan in 2025, an increase of 8.3 per cent over the year prior.

As for local debts, Lan said local governments had issued 2.96 trillion yuan in debt-swap bonds as of yesterday, and the interest rates of local debts has been lowered by 2.5 percentage points.

The number of local government financing vehicles, previously a source of the lion’s share of implicit government debt, has fallen since last year, Lan said. The next step, he added, will be transforming the business of those vehicles that still exist.

In terms of monetary policy, the People’s Bank of China will cut interest rates and the reserve requirement ratio at an “appropriate time” this year, central bank governor Pan Gongsheng said.

He emphasized the need to keep the yuan’s exchange rate stable and cautions against overshooting.

In response to how innovation will be financed, Pan said more bond issuances and relending tools will be used to aid in the country’s tech development. A tech-focused segment of the bond market will be launched to back these issuances, he added.

The size of the relending tool for tech innovation will be doubled to 1 trillion yuan this year, Pan announced.

Wu Qing, head of the China Securities Regulatory Commission, said the unexpected success of artificial intelligence start-up DeepSeek has helped usher in a re-evaluation of China’s stocks, vowing to improve capital market support mechanisms for tech firms, with a focus on those sectors that are actively working on new breakthroughs.

On stock market regulation, Wu said China will redouble efforts to clamp down on irregularities in the stock market, and ensure that investors are protected.

Coordination and countercyclical adjustments will be strengthened between primary and secondary markets, Wu added, noting that this will drive listed companies to improve their ability to deliver stronger returns to investors.

Meanwhile, corporate mergers and acquisitions will be promoted among tech firms. He encouraged the use of “patient capital”, funding with an eye on the long-term, and said tools besides stock listings would be used to support scientific innovation.

In terms of foreign trade, Commerce Minister Wang Wentao said the country’s service trade has surpassed 1 trillion yuan in value for the first time, and it now includes a more diverse range of partners. Trade with countries involved in the Belt and Road Initiative now account for more than half of all imports and exports – a development he deemed a historic milestone.

Wang said there are “severe challenges” for Chinese imports, given global trends towards protectionism, and policies will be implemented to stabilize foreign trade, particularly in services.

Enterprises will be assisted in securing orders and keeping their exports stable, and cross-border e-commerce and overseas warehouses will be expanded.

Two Sessions highlights

Next on industry and company news

Wrapping up with a quick look at the stock market

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

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