China Faces Growing Economic Uncertainty Amid Trade Tensions and Domestic Challenges

China’s economy is grappling with increasing uncertainty on the international front, as well as domestic challenges, according to top economic official Zheng Shanjie. Speaking at a news conference on March 6, 2025, Zheng, Chairman of the National Development and Reform Commission, highlighted rising external pressures and insufficient domestic demand as key concerns for the country’s economic outlook. These issues are compounded by production difficulties faced by certain industries and businesses.

Despite these obstacles, China has set an ambitious annual growth target of around 5% for 2025. The government has expressed full confidence in achieving this target, focusing on boosting domestic demand as a key driver of economic growth. This comes as an ongoing trade war with the United States continues to impact China’s export sector, further intensifying the economic strain.

Zheng acknowledged the increasing uncertainty in the global environment but reassured the public that China’s economic fundamentals remain solid. He emphasized that the government has the necessary support mechanisms to achieve the growth target. According to Zheng, while challenges exist, they are part of a developmental process that can be addressed with strategic measures.

In closing, Zheng remained optimistic about overcoming the current economic hurdles. He expressed confidence that China could tackle both internal and external challenges through ongoing reforms and policy adjustments, ensuring that the country remains on track to meet its growth ambitions for the year.

SOURCE: GUARDIAN