China revealed at the Two Sessions a 5% GDP growth target for 2025, marking the occasion with a noteworthy 4% budget deficit and a 7.2% surge in defense spending. Meanwhile, the US has levied fresh 20% tariffs amidst rising trade tensions.
To reach the growth goal, China must overcome obstacles such as sluggish consumer demand and a housing market crisis. Beijing's strategy involves bolstering private sector involvement, prioritizing AI advancement, and implementing additional stimulus measures, including a $410 billion sovereign bond quota.