Experts and business leaders assert that China is on course to meet its 2025 growth target

China aims for 5% economic growth by boosting innovation, consumption, and investment, with supportive policies. AI emerges as a significant growth driver, attracting investors and transforming industries.

Key Points

• The "CEO: Grow with China" Roundtable, hosted by China Daily, discussed strategies for achieving China’s growth target of 5% in 2025. Participants emphasized innovation and consumption, aided by fiscal policies, supportive measures, and technological advancements like AI in manufacturing.

• Economists highlighted structural shifts in the economy where AI-powered manufacturing is transforming industries. This transformation creates new quality productive forces and application scenarios, presenting significant opportunities for companies such as Rolls-Royce and AI startups like DeepSeek.

• Government initiatives include a national venture capital guidance fund and reductions in reserve requirement ratios. The capital market reacted positively with indexes rising. Opportunities for international investments are expanding as technology and supportive policies foster favorable growth conditions in China’s evolving economic landscape.

The “CEO: Grow with China” Roundtable, hosted by China Daily’s Institute for Corporate Communication alongside the China Services Information Platform, gathered economists and business leaders to deliberate on China’s economic prospects and business opportunities. The consensus anticipates China achieving its 2025 growth target of approximately 5 percent, driven by innovation and bolstered consumption and investment. Lin Shen from the Chinese Academy of Social Sciences emphasized the structural shift toward new growth drivers, with AI-powered manufacturing playing a significant role in this transition. According to Lin, China’s fiscal strategies and innovation-friendly policies are vital for maintaining robust economic growth.

Ole Gerdau from Deutsche Bank China expressed optimism despite geopolitical challenges, highlighting consumption as a critical driver of economic growth, contributing to two-thirds of it. The enhanced trade-in program is expected to stimulate consumption further. The rise of AI startups like DeepSeek is reshaping global perceptions of China’s innovation potential, prompting increased interest from international investors, with expectations of a higher allocation towards the Chinese market.

China’s agenda includes prioritizing productive forces and enhancing financial services, evidenced by measures from the People’s Bank of China, such as adjusting the reserve requirement ratio and interest rates, reflecting responsiveness to economic conditions. The strong performance of Chinese stock indices signifies market confidence, supported by government strategies like the National Development and Reform Commission’s introduction of a national venture capital guidance fund aimed at enhancing innovative enterprises with substantial private and local government support.

At the roundtable, experts highlighted the potential of sectors such as AI in generating new opportunities and transforming industries. Troy Wang from Rolls-Royce reiterated China’s significance beyond just a market, fueled by a focus on innovation-driven growth. This focus is evident in ventures like Beijing Aero Engine Services Co Ltd., positioning it as a leading aeronautical engine service provider. On a broader scale, Rani Jarkas of Cedrus Group underlined China’s comprehensive technological infrastructure as a pivotal element in advancing AI’s growth, encouraging both domestic and international business engagements.

Huang Yanxiang from Shanghai CarbonNewture noted the transformative impact of AI on industries, enhancing manufacturing efficiency and fostering new business models. Such advancements translate into improved data analysis and reporting capabilities in platforms like CarbonNewture, underlining the integration of AI in innovative processes. Overall, the event underscored China’s commitment to driving economic growth through innovation and fostering a conducive environment for both domestic and foreign companies.

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