By Ricky S 
The Fourteenth National People’s Congress (NPC) held its Third Meeting on March 5, 2025 in Beijing. Premier Li Qiang reported on the government’s work and described the main policies of economic and social development for the year.
At the same time, global economic uncertainties and domestic issues were laid, and therefore, the NPC adopted some fiscal laws that aimed at retaining growth and improving public welfare.
The most significant part of the report was the review of China’s economic performance in 2024. The Gross Domestic Product (GDP) grew by 5% increase, a figure which is not so high but still it shows that China copes with the complexities of the international atmosphere and makes its domestic structural changes.
The harvest of grain was at a record high last year, with around 1.4 trillion pounds of the product delivered in order to secure a domestic food supply. Furthermore, the number of people employed in urban areas increased by 12.56 million, and the manufacture of new energy vehicles outnumbered 13 million, as a result of which the country’s commitment to sustainable development was highlighted.
According to the information forecast for 2025, the planned fiscal deficit rate for the NPC is approximately 4%. This increase is obtained from borrowing an extra 1.6 trillion Yuan compared with the year before. This adjustment shows that the government is ready to adjust the fiscal policy from passive to proactive in order to encourage economic activity.
Behavioral programs for special local government bonds, which will be about 4.4 trillion yuan, are set to be issued for the infrastructure and other vital projects, with a 500 billion yuan increase from last year. Altogether, new government debt is expected to make up to 11.86 trillion yuan, an increase of 2.9 trillion yuan from the previous year.
The government wants to reform the drug procurement policies and the quality assessment procedures in healthcare. The financial support given to residents through a per capita health insurance subsidy and a basic public health services subsidy will be increased by 30 yuan and 5 yuan, respectively. The purpose of these measures is to reduce the financial burden of citizens and provide easier access to quality healthcare services.
Social welfare is another major area with the minimum basic pensions for urban and rural inhabitants set to increase by an extra 20 yuan. Rather than viewing the currently challenging demographics as a problem, the government is introducing different policies to encourage reproduction, like providing childcare subsidies. The main idea of these undertakings is to cope with the aging population and to promote long-term social stability.
The NPC’s decisions are being made at a time when China is under the influence of external pressures, including trade friction with major partners such as the United States and Canada.
Lately, the additional tariffs and counter-tariffs have created a very uncertain trade environment that may affect China’s export-oriented industries. Internally, the government is faced with the complexities of transitioning to a consumption-driven economy, managing debt levels, and ensuring financial stability
Premier Li strongly argued the need to find a middle way between stable growth and risk prevention. He demanded further advancements by means of structural reforms, innovation, and a more business-friendly environment in order to attract both local and foreign investors. Besides, the government also plans to step up environmental protection measures, which is in line with global sustainability objectives.
China’s economic performance has a significant impact on the world economy, so the views of international observers, especially regarding the country’s policy orientations, are quite relevant.
The newly approved fiscal measures serve as the evidence that China will try hard to pump up its own economy in the face of all obstacles, as expected, the real bottom line, though, is how successful they could be in their successful implementation. The regulatory agencies will ask the government to adopt and adjust these policies to the best effect, harmonize with society, and sustain economic resilience.
As China is starting to execute these activities, not only would the results specify its development lane, but it will indeed influence worldwide economic tendencies. The rest of the world will follow with interest how China, then, handle their fiscal policies, trade relationships, and the reforms done in the domestic front in the forthcoming years.