China on track to meet growth target of around 5% in 2025

China's economic growth is on course to achieve its annual target of "around 5 percent" for 2025, driven by the country's massive domestic market, robust demand from both home and abroad, and supportive policies aimed at boosting innovation and emerging industries, said Lin Shen, an associate research fellow at the Chinese Academy of Social Sciences' Institute of World Economics and Politics.

"I'm fully confident in China's economic prospects this year and believe that the 'around 5 percent' growth target is achievable," Lin said.

Lin emphasized the structural transformation of the economy, where new growth drivers are replacing traditional ones. He highlighted that AI-powered manufacturing is gaining traction. "Our new quality productive forces, supported by AI, have integrated well with manufacturing and the real economy. The next step will be significant advancements in application scenarios," he noted.

He added that the shift is not only fueled by improvements in infrastructure and connectivity, but also by the diverse and multi-tiered demand from both domestic and international markets. This demand will further propel industrial growth driven by innovation.

Lin also pointed out that government policies promoting innovation and emerging industries will further support economic momentum. "Policies designed to foster innovation and develop emerging industries have been steadily implemented. Fiscal policies and other innovation-friendly measures will play a crucial role in sustaining economic growth throughout the year," he said.

On the consumer side, demand from an increasingly unified and diversified domestic market is expected to boost spending in key sectors. "The establishment of a unified national market will be key. Our diverse consumer market will drive growth in areas such as tourism, culture, education, elderly care, and the silver economy," Lin explained. He also highlighted the significant growth potential for AI-driven applications in healthcare and traditional Chinese medicine.

Investment activity, both from domestic tech firms and foreign investors, is another key driver. "In the investment sector, the gradual opening of certain industries to foreign capital and increased support for private enterprises will spur innovation. We can expect the emergence of more innovative firms, like the 'Six Little Dragons' in Hangzhou, Zhejiang province, as well as large tech giants. Their investments will, in turn, further drive economic growth," Lin stated.

China is prioritizing the development of new quality productive forces and technological innovation in its economic agenda for the year. Policymakers recently announced a series of supportive measures to create new growth drivers for the world's second-largest economy.

The National Development and Reform Commission recently unveiled plans to establish a national venture capital guidance fund, aiming to enhance, strengthen and expand innovative enterprises. The fund is expected to attract nearly 1 trillion yuan ($138 billion) in capital from local governments and the private sector.

Meanwhile, the People's Bank of China, the country's central bank, announced plans to launch a science and technology board in the bond market this year to provide financial support for technological innovation.