China Seeks Significant Stimulus to Achieve 5% Growth Amid US Trade War

China has maintained its GDP growth target at around 5% for 2025, despite the escalating trade tensions with the U.S. and sluggish domestic consumption. Premier Li Qiang highlighted the unprecedented external challenges facing China, calling for increased government stimulus to support domestic demand and counteract the impact of new U.S. tariffs. The recent imposition of an additional 20% tariff by the Trump administration on Chinese goods has intensified pressure on China's manufacturing sector, prompting a reassessment of economic strategies. Economists predict that achieving the growth target may require significant fiscal measures, including a focus on boosting consumer spending, which has been a longstanding goal of China's economic policy. While some analysts downplay the impact of tariffs on China's economy, they acknowledge that weak household consumption and the property sector crisis complicate growth efforts. As China pivots towards a consumption-led economy, the effectiveness of these stimulus measures remains uncertain amid ongoing trade and market challenges.