BEIJING: China is confident and capable of minimizing the uncertainties and adverse impacts of external shocks, promoting sustained and healthy economic growth as existing stimulus policies have shown results, which would be reinforced by new policy measures to be gradually rolled out, Li Chao, spokesperson for the National Development and Reform Commission (NDRC), the country’s economic planner, said on Thursday.
Li made the remarks at a press conference, when asked about the impact of external factors such as sluggish global growth on China’s economic outlook, following the OECD’s recent cut to global growth forecast and the latest warning from JPMorgan Chase’s CEO about US bond market risks.
Noting a more complex and severe external environment since the start of this year, Li said that China has continued to pursue progress while maintaining stability and promote stability through progress, implement more proactive and effective macroeconomic policies, and accelerate the implementation of several measures to stabilize employment, stabilize the economy and promote high-quality development. “The overall economic operation remains stable,” she said.
Li said that the current complexity, severity and uncertainty of the external environment have increased, and the stable growth of global economy and trade is facing challenges, which will also affect the smooth operation of China’s economy. However, even though the World Bank and the OECD cut global growth forecasts by 0.4 and 0.2 percentage points, respectively, China’s growth outlook remains stable, with Deutsche Bank, Morgan Stanley, Goldman Sachs and other international investment banks raising their forecasts for China, she noted.
For example, Deutsche Bank analysts recently raised China’s GDP forecast by 0.2 percentage points to 4.7 percent growth for the full year of 2025.
Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, said that China’s economic resilience against external challenges is bolstered by the country’s complete industrial chain, vast market scale with significant consumption upgrade potential, and broad investment opportunities. Meanwhile, China’s robust policy toolkit enables the swift rollout of incremental policies, Wang told the Global Times on Thursday.
At the press conference, Li also highlighted various policy measures, including massive support for equipment upgrade and consumer goods trade-in programs.
In terms of equipment upgrade, Li noted that ultra-long special treasury bonds provide 200 billion yuan ($27.87 billion) in financial support. The first batch of approximately 173 billion yuan has been allocated to about 7,500 projects across 16 sectors, and the second batch is undergoing project review and selection.
For consumer goods trade-ins, 300 billion yuan in ultra-long special treasury bonds has been allocated, with the first two batches, totaling 162 billion yuan, having been disbursed as planned in January and April. The third batch for this year will be allocated in July, according to Li.
To stabilize employment, Li said that the NDRC and the Ministry of Finance have allocated 16.5 billion yuan in 2025 in central special investments for work-relief programs, supporting more than 3,900 projects nationwide that are expected to address employment and income issues for 380,000 people in need. The authorities will further increase compensation, and accelerate project reviews to promote employment and income for key groups.
Hu Qimu, deputy secretary-general of the Forum 50 for Digital-Real Economies Integration, said that strengthening the domestic economic cycle and building a unified national market provide strong confidence in addressing uncertainties in external demand, including unilateral tariffs.
Moreover, despite challenges in global trade, China’s export sector retains a key advantage for sustaining steady developments. Specifically, Belt and Road Initiative (BRI) partner countries represent a vital incremental market, according to Hu.
In May, China’s goods exports in yuan terms grew by 6.3 percent year-on-year, with exports to ASEAN increasing by 17.5 percent, those to the EU by 13.7 percent, and BRI partner countries by 13.8 percent, according to official data.
In addition, China remains the optimal choice for many global investors, thanks to its globally competitive manufacturing capabilities, superior business environment and other factors, Hu noted.
