China has reiterated its plans to open its economy further by 2025, even amid potential trade tensions with the U.S. under President-elect Donald Trump.
Despite facing hurdles like a housing sector debt crisis, weak consumer spending, and high youth unemployment, China’s economy, the second-largest globally, continues to recover from the impacts of the Covid-19 pandemic.
China also faces the possibility of heightened tariffs on its imports, as Trump has pledged to impose them after assuming office.
Officials from the National Development and Reform Commission (NDRC) stated their unwavering commitment to promoting systemic openness, enhancing a market-oriented business environment, and encouraging foreign investments in sectors like advanced manufacturing, energy efficiency, and environmental protection.
“No matter how the external environment changes, full of uncertainty, China’s determination and actions to open up to the outside world will remain unchanged,” NDRC officials declared.
China is transitioning from a high-growth strategy to sustainable development, reflected in its increased investment in renewable energy. By last year, wind and solar power made up 40.5% of its total power generation capacity, AFP reported.
However, Trump’s potential trade measures, including a proposed 60% tariff on Chinese imports, could dampen China’s exports, investments, and employment. J.P. Morgan estimates these tariffs might reduce China’s growth by 1-1.5 percentage points over a year.
Additionally, demographic shifts like an aging population challenge China’s long-term economic outlook. The country has expanded elder care facilities to 410,000 and childcare providers to 100,000 as of 2024, according to NDRC deputy director Zhao Chenxin.
