China confident in hitting 5% growth target amid trade war pressures

[WORLD] China remains "fully confident" in its ability to meet its target of approximately 5 percent economic growth this year, despite the ongoing trade conflict with the United States, a senior official from the country's leading planning agency stated at a press conference on Monday.

This optimism comes amid a mixed economic environment, as recent data revealed stronger-than-expected industrial output and retail sales in the first quarter, helping to offset ongoing challenges in the property market. Analysts point to targeted fiscal and monetary measures, such as cuts in reserve requirement ratios and increased infrastructure spending, which have provided a buffer against external pressures.

"We still have ample policy reserves and plenty of policy space," said Zhao Chenxin, deputy head of the National Development and Reform Commission, China’s top economic planning body.

Zhao's comments align with earlier statements from Chinese officials, who have reiterated their confidence in the country's resilience in the face of U.S. tariffs on critical exports such as electric vehicles and semiconductors. While these trade tensions have raised concerns about potential supply chain disruptions, China has intensified efforts to diversify its trade partnerships, notably strengthening ties with Southeast Asia and the broader Global South.

"No matter how the international situation evolves, we will stay focused on our development goals and concentrate on managing our own affairs effectively. We are fully confident in achieving this year’s economic and social development targets," Zhao added.

The 5 percent growth target, established during March’s National People’s Congress, is viewed as ambitious but attainable, with the government relying on advancements in high-tech manufacturing and green energy investments to drive growth. Domestic consumption is also expected to play a larger role, buoyed by wage growth and targeted consumer subsidies.

However, some economists express concern that prolonged trade friction could dampen performance in export-driven sectors, especially if the U.S. imposes additional restrictions on Chinese goods. The International Monetary Fund recently downgraded its growth forecast for China slightly, citing "geopolitical headwinds," though it acknowledged the economy's underlying strengths.