China warns of uncertainty ‘unseen in a century’ as it moves to boost consumption

China’s leaders announced a bullish economic growth target of 5% for 2025 but warned of global uncertainty “unseen in a century.”

Premier Li Qiang vowed to expand government borrowing, court foreign investment, and boost domestic consumption, as the country’s domestic challenges are compounded by a widening trade war with the US.

“An increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science, and technology,” Li said.

The growth target — unchanged from 2024, despite severe economic challenges — represents “a show of confidence,” and is a sign that Beijing will likely roll out supportive domestic policies in addition to fiscal stimulus, the scale of which has not yet been fully outlined, ING’s Greater China chief economist wrote.

Li’s speech also represented a rhetorical contrast with US President Donald Trump’s address to Congress, which was inward-focused and protectionist, the South China Morning Post’s Beijing bureau chief wrote.