by Wang Kai

 

BEIJING, Mar 7 (China Economic Net) - "In this period of enormous global uncertainty, China remains a significant stabilizing force in the world economy. With an expected economic growth of around 5% for 2025, China will continue to be the biggest source of global economic growth," said Erik Solheim, former United Nations Under-Secretary-General and former Executive Director of UN Environment Programme. He made the comments in an interview with China Economic Net following the unveiling of China's government priorities for 2025 at the ongoing Two Sessions, the annual meeting of the country's top legislative and advisory bodies. 

 

In the Government Work Report delivered on Wednesday, China sets a GDP growth target of around 5% for 2025, along with plans to boost domestic demand and encourage foreign investment. 

 

Stronger endogenous momentum 

 

"The vast domestic market that was highlighted as the primary increase of consumption and reinforced by targeted stimulus packages, not only enhances its resilience against global uncertainties, but also represents huge opportunities for the world," Solheim noted.

 

In the Government Work Report 2025, China outlined a more proactive fiscal policy and an expansionary monetary policy, along with measures to enhance people's spending power while ensuring a steady supply of high-quality products and services.

 

Bernardo Mendia, Board Advisor at the EU Young Entrepreneurs Association commented that China is transitioning its economy from a labor- intensive one to one driven by capital and technology. "The planned measures to stimulate domestic consumption and the incentives for skill development provide strong endogenous power for long-term growth." 

 

He also pointed out that raising the fiscal deficit target from 3% to 4% will create additional leverage for investment.

 

David Perez-Des Rosiers, Director of Canada China Business Council Beijing Chapter highlighted China's decision to target 2% of inflation, describing it as a positive signal for consumption recovery and economic predictability for foreign businesses operating in China.

 

More open market for investment  

 

During Wednesday's meeting, China announced to open Internet-related and cultural sectors in a well-regulated way, and expand trails to open sectors such as telecoms, medical services, and education. Foreign investors will be encouraged to increase their reinvestment in China and supported in collaborating with upstream and downstream enterprises in industrial chains. 

 

David Perez-Des Rosiers highlighted the magnetism of China's open business environment. "China's commitment to expanding service sector openness and attracting foreign investment offers positive perspective for Canadian businesses, particularly in services and education, which form a large part of Canada-China bilateral business," he said.

 

He added that a recent business survey indicated that 70% of Canadian businesses still consider China a top-five priority for business or investments. Currently, around 250 corporate members of the Canada-China Business Council are engaged in diverse sectors of the Chinese market.

 

Bernardo Mendia also hailed China's role in upholding a multilateral global order, highlighting its contributions to reforming UN governance structures to make them more effective and rules-based. 

 

Driving innovation and sustainability 

 

Solheim identified "stability" and "innovation" are the two key words from this year's Two Sessions. "China is at the forefront of innovation, particularly in the two most important sectors - economy and environment," he noted, adding that stronger cooperation between Europe and China is essential amid uncertainties from Washington.

 

"Europe will realize that we need Chinese technology," Patrick Nijs, co-founder of EU-China Joint Innovation Center pointed out. He is also actively involved in sustainable agriculture projects in China, particularly in Yunnan Province, where he is developing an organic farm and an international eco-community. 

 

"For a successful ecological transition, we need a structured platform for collaboration between Europe and China to address climate change and enhance industrial cooperation. Many small-scale initiatives in China are already making a global impact in sustainability," Nijs stated.

 

Echoing this sentiment, Bernardo Mendia emphasized that combating climate change is a shared goal of both Europe and China. "The world is becoming more balanced, and it is critical to prevent technological decoupling between global powers," he said.