China’s National People’s Congress (NPC) commenced its third session on Wednesday, with Beijing announcing a 7.2% increase in its defense budget for 2025, amounting to 1.78 trillion yuan ($249 billion), according to state media. The session, attended by President Xi Jinping and other leaders, reviewed government reports, including Premier Li Qiang’s presentation on economic and social development.
Beijing has set a 5% economic growth target for 2025 amid concerns over slow consumption, a property slump, and rising local government debt. The government aims to curb unemployment at 5.5%, create over 12 million jobs, and raise the consumer price index by 2%. The report also emphasized high-quality development, domestic demand, and investment in key sectors such as AI and quantum technology.
China will issue 300 billion yuan ($41.2 billion) in treasury bonds to support consumer goods trade-in programs. The country is also focusing on modernizing industries and integrating digital advancements with manufacturing to stimulate economic momentum.
