China's 2025 local economic growth targets were unveiled this week, with Beijing, Shanghai, and Guangdong setting targets at approximately 5%. Other provinces have generally set lower goals compared to last year. SMU Associate Professor of Finance Fu Fangjian noted that most regions are likely to meet their 2024 targets, making China's overall 5% growth target achievable. However, for 2025, despite the central government's focus on stimulating the economy and expanding domestic demand, local governments have adopted more conservative targets. Assoc Prof Fu attributes this caution to uncertainties surrounding Donald Trump's presidency, describing the approach as "wait-and-see." He explained that if Trump does not view China as a primary target of contention, the central government might introduce stronger growth measures. Conversely, if the U.S. intensifies its stance against China, the country may prioritise its strategic response over economic acceleration
