China kept its 2025 economic growth target at roughly 5% while committing to higher government spending to counter deflationary risks and the impact of escalating U.S. trade tariffs, according to a government report released Tuesday.
Budget deficit target raised to 4% of GDP (up from 3% in 2024).
1.3 trillion yuan ($179 billion) in special treasury bonds to be issued.
Local governments can issue 4.4 trillion yuan in special debt (up from 3.9 trillion).
Beijing faces pressure as U.S. President Donald Trump’s administration ramps up tariffs, adding 20 percentage points to Chinese imports since January.
Chinese exports to the U.S. exceed $400 billion annually, but higher U.S. trade barriers threaten manufacturers.
China retaliated Tuesday, imposing 10%-15% tariffs on U.S. agricultural products and sanctioning 25 American firms.
China’s economy struggles with sluggish consumer demand and a crisis in the debt-laden property sector. Analysts urge Beijing to stimulate household spending rather than rely on exports and industrial expansion.
“Boosting domestic household consumption is key,” said Eswar Prasad, former IMF China director.
Despite leading in EVs and AI, experts warn that China’s innovation drive must be balanced with consumer demand growth to avoid stagnation like Japan’s economic slowdown.
With Premier Li Qiang set to outline policies on Wednesday, China faces a critical test in navigating trade tensions and internal economic imbalances.
UN Secretary-General Antonio Guterres condemned Russia’s recent large-scale drone and missile attacks on Ukraine, calling them the biggest since the...
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Russian air defences intercepted four Ukrainian drones targeting Moscow on Saturday, prompting brief flight suspensions at major airports in the capit...
Ukraine’s top military commander, Oleksandr Syrskyi, warned on Saturday of a possible new Russian offensive in the Kharkiv region. The area in north...
China has issued high heat warnings across hundreds of regions as East Asia faces its most intense heat wave of 2025....
UN Secretary-General Antonio Guterres condemned Russia’s recent large-scale drone and missile attacks on Ukraine, calling them the biggest since the war began over three years ago.
Microsoft is closing its direct operations in Pakistan after 25 years, shifting to a partner-led model to serve the market.
Armenian Prime Minister Nikol Pashinyan says the country needs a new constitution that reflects its current realities and has a clear purpose.
Afghanistan has asked Azerbaijan to support its export efforts to Türkiye and Europe via the Port of Baku, aiming to boost trade through the Lapis Lazuli Corridor.
The European Commission is set to propose allowing carbon credits from other countries to count towards the EU’s 2040 climate target, according to a leaked internal document.
A magnitude 5.5 earthquake struck off Japan’s Tokara Islands on Wednesday, with no tsunami warning issued but residents advised to remain vigilant.
The United States has rescinded licensing restrictions on ethane exports to China, allowing shipments to resume after a temporary halt and signalling progress in efforts to ease recent trade tensions.
Italy plans to grant approximately 500,000 work visas to non-EU nationals between 2026 and 2028, as announced in a cabinet statement. The initiative aims to address labor shortages by expanding legal immigration pathways
Following a deadly glacier collapse in Blatten, near the Swiss Alpine village of Kandersteg, the town is on high alert as melting permafrost and shifting rock threaten another potential disaster after it was buried a month ago.
Poland’s iconic Vistula River has dropped to historic lows, as severe drought and scorching heat grip the country.
UN Secretary-General Antonio Guterres condemned Russia’s recent large-scale drone and missile attacks on Ukraine, calling them the biggest since the war began over three years ago.
Russian air defences intercepted four Ukrainian drones targeting Moscow on Saturday, prompting brief flight suspensions at major airports in the capital and other cities.
Ukraine’s top military commander, Oleksandr Syrskyi, warned on Saturday of a possible new Russian offensive in the Kharkiv region. The area in northeastern Ukraine has seen heavy fighting since Russia’s full-scale invasion in 2022.
Afghanistan has asked Azerbaijan to support its export efforts to Türkiye and Europe via the Port of Baku, aiming to boost trade through the Lapis Lazuli Corridor.
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