China Targets 5% Economic Growth and Expands Military Budget by 7.2%

At the National People's Congress, Beijing sets ambitious economic goals and reinforces its military modernization amid heightened tensions with the US and Taiwan.

China's government has announced a 5% economic growth target for 2025, despite domestic challenges like weak consumer demand, a struggling real estate sector, and deflationary pressures.
Tensions with the US escalate as President Trump doubles tariffs on Chinese imports to 20%, prompting China to impose retaliatory tariffs on US agricultural products and sanction certain American firms.
China's military budget will increase by 7.2% to 1.78 trillion yuan (approximately €231 billion), continuing efforts to modernize its armed forces into a 'world-class military' by 2049.
Beijing reaffirmed its stance on Taiwan, emphasizing its claim to the island and signaling readiness for reunification, potentially through military means if necessary.
The government also plans to boost funding for artificial intelligence and future industries, aiming to enhance innovation and stabilize the domestic economy.