This photo taken on Feb. 15, 2023 shows a factory of Chinese electric vehicle (EV) maker Li Auto Inc. in Changzhou, east China's Jiangsu Province. (Photo/Xinhua)

China has outlined an ambitious yet pragmatic economic strategy for 2025, setting a growth target of around 5%. With a focus on proactive fiscal policies, technological advancement, and strengthened domestic consumption, the world’s second-largest economy is positioning itself as a stabilizing force in global economic development. As uncertainties persist, China’s commitment to high-standard opening-up and innovation reinforces its role as a key driver of global growth.

Amid ongoing global economic volatility, China remains a pillar of stability. The country's economic agenda for 2025 emphasizes expanding domestic demand, encouraging foreign investment, and fostering technological innovation. This strategic direction aims to maintain a steady economic trajectory while enhancing adaptability in the face of global shifts.

A key element of this approach is a more expansionary fiscal policy. The fiscal deficit-to-GDP ratio has been increased from 3% to 4%, allowing for greater investment in priority sectors. Additionally, the issuance of significant treasury and local government bonds reflects a commitment to economic stimulus, signaling confidence in sustained recovery and long-term stability.

China's economic blueprint prioritizes domestic consumption, marking a transition from a traditional export-driven model to one fueled by internal demand. Special initiatives, including targeted financial support for consumer goods trade-in programs, are designed to stimulate spending while encouraging sustainable consumption patterns.

This emphasis aligns with the broader transformation of China’s economic structure, which is increasingly shifting toward capital, technology, and innovation-driven industries. By enhancing consumer confidence and purchasing power, the country is strengthening its internal economic resilience while reducing reliance on external demand fluctuations.

China continues to pursue a policy of high-level opening-up, expanding market access and encouraging foreign investment across various sectors. Policies are being introduced to facilitate greater participation in industries such as telecommunications, medical services, and education, reinforcing China's commitment to international economic cooperation.

Despite evolving global trade dynamics, China remains a major destination for foreign investment. Businesses engaged in the Chinese market continue to view the country as a strategic priority, recognizing the long-term potential of its expanding consumer base and advanced industrial ecosystem.

At the core of China's economic strategy is a strong focus on technological innovation. The government has prioritized emerging fields such as biomanufacturing, quantum technology, artificial intelligence, and 6G development, underscoring its ambition to lead in next-generation industries.

The integration of AI with advanced manufacturing is a key component of this strategy. Initiatives aimed at enhancing smart manufacturing capabilities are expected to accelerate industrial transformation, boosting efficiency and global competitiveness. Additionally, advancements in AI research continue to showcase China's ability to achieve technological breakthroughs using cost-effective and efficient methodologies.

Beyond AI, China is fostering international cooperation in green technologies. Collaborative efforts between China and global partners are essential in addressing climate change and promoting sustainable industrial practices. A structured approach to innovation in environmental technologies will contribute to a more effective global transition toward sustainability.

China's economic roadmap incorporates a strong commitment to sustainability. Policies supporting renewable energy, green infrastructure, and environmentally friendly industries align with national carbon reduction targets, reinforcing the country's role as a global leader in climate action.

With an emphasis on stability and innovation, China is advancing green technologies to support both domestic and international sustainability goals. This extends to infrastructure projects under the Belt and Road Initiative (BRI), where the integration of digital solutions is enhancing climate resilience and environmental efficiency.

Employment and social welfare remain central to China's economic planning. The target of creating over 12 million new urban jobs in 2025 reflects the country's proactive approach to maintaining labor market stability. Strategic policy measures are also in place to support social welfare initiatives, including phased expansions in education access and programs aimed at encouraging population growth.

By aligning economic policies with social development goals, China is ensuring that its growth remains inclusive. A balanced approach to economic expansion, job creation, and social welfare enhancements will contribute to a more equitable and sustainable development model.

China's 2025 economic strategy presents a clear vision for stability, innovation, and global engagement. Through a combination of fiscal expansion, technological advancements, sustainability initiatives, and high-level market openness, the country is reinforcing its role as a key contributor to global economic progress.

As uncertainties persist in the international landscape, China's strategic direction signals confidence, growth, and cooperation. By leveraging domestic demand, fostering innovation, and strengthening global partnerships, China is not only securing its own economic future but also creating opportunities for international collaboration and shared prosperity.

The writer is the Chairman of the Belt and Road Initiative for Sustainable Development BRISD.

The article reflects the author's opinions, and not necessarily the views of iChongqing and Bridging News.