On March 5, 2025, the Third Session of the 14th National People’s Congress officially opened, with Premier Li Qiang delivering the Government Work Report, outlining China’s macroeconomic goals and key policy priorities for 2025. This year marks a critical turning point for China’s economic and policy direction.
In response to these developments, our CKGSB professors shared their expert insights with leading media outlets, including Xinhua Finance, Caijing Magazine, and China News Service, providing in-depth analysis of the core themes from the Two Sessions. This article compiles their key perspectives, offering a deeper understanding of the policy landscape surrounding GDP growth, monetary policy, capital market reforms, consumption recovery, and the rise of unicorn enterprises in 2025.
"The 5% economic growth target is essential for stabilizing employment, managing risks, and improving livelihoods. This target aligns with China’s long-term development goals, signaling resilience and ambition in the face of global challenges." — 2025 Government Work Report
LIU Jing, Professor of Accounting and Finance and Director of Investment Research Center, CKGSB, notes that the 5% GDP growth target, inflation goals, and employment projections set in the Government Work Report align closely with market expectations. However, achieving this growth amid global economic headwinds will require strong policy coordination and structural reforms. To ensure sustainable economic growth, Professor Liu highlights four key strategies:
Professor Liu emphasizes that China’s strong policy toolkit and market potential will be key to navigating challenges and achieving high-quality growth in 2025.
"We will implement a moderately expansionary monetary policy, utilizing both broad-based and targeted monetary tools. Interest rate and reserve ratio adjustments will ensure sufficient liquidity, aligning financing growth with economic and price stability targets." — 2025 Government Work Report
ZHOU Chunsheng, Professor of Finance, Associate Dean for Executive Education Programs, Executive Academic Director for Executive MBA Program and Chairman of CKGSB, identifies a clear shift in monetary policy toward proactive countercyclical adjustments to stabilize economic growth. With geopolitical uncertainty, weak global trade, and sluggish domestic demand, China is expected to deploy innovative monetary tools to enhance macroeconomic stability. The key aspects of this policy transition include:
Professor Zhou believes that China’s evolving policy mix will help restore business confidence and drive sustainable growth, while supporting employment and household income expansion.
"We will deepen capital market reforms to enhance long-term capital inflows, strengthen strategic market reserves, and refine stabilization mechanisms. The stock issuance and M&A systems will be optimized to improve financing efficiency." — 2025 Government Work Report
LI Wei, Professor of Economics, Associate Dean for Asia and Oceania, Director of Case Center and Director of Big Data Economic Research Center, CKGSB, highlights the importance of attracting long-term investment into China’s capital markets. He argues that while increased institutional investment will provide market stability, investor protection remains a key priority. To maximize the impact of long-term capital in equity markets, he suggests:
As China maintains the highest savings rate among major economies, Professor Li emphasizes that a well-regulated capital market will unlock greater investment opportunities, ultimately supporting economic transformation and innovation.
"We will launch a national consumption stimulus initiative, introducing measures to enhance purchasing power, increase high-quality supply, and optimize the consumer environment." — 2025 Government Work Report
Professor Zhou Chunsheng stresses that consumption is the ultimate driver of economic growth. While investment fuels capacity expansion, the end goal remains strong consumer demand. To stimulate consumption, he suggests:
Additionally, Professor Li Wei adds that capital market development will further support consumption by unlocking new wealth effects and improving resource allocation efficiency.
Meanwhile, Professor Liu Jing highlights five structural priorities to enhance consumption:
"We will foster a multi-tiered innovation ecosystem, supporting specialized SMEs, high-growth unicorns, and emerging industry leaders to accelerate technological breakthroughs." — 2025 Government Work Report
TENG Bingsheng, Professor of Strategic Management and Associate Dean for Strategic Research, CKGSB, identifies three major trends in China’s unicorn ecosystem:
China’s deepening focus on AI and semiconductor innovation reflects a strategic shift from business model innovation to core technology breakthroughs. Professor Teng emphasizes that China’s unicorns are increasingly investing in long-term R&D and sustainable business models, positioning themselves as global industry leaders. He underscores the importance of patient capital, noting that both investors and businesses must adopt long-term strategies to ensure sustained growth and market competitiveness.
Established in Beijing in November 2002, Cheung Kong Graduate School of Business (CKGSB) is China’s first privately-funded and research-driven business school. The school aims to cultivate transformative business leaders with a global vision, sense of social responsibility, innovative mindset, and ability to lead with empathy and compassion (https://english.ckgsb.edu.cn).
This article was original published by CKGSB in Chinese: https://mp.weixin.qq.com/s/qxkwJJZG8CXFGweVNxnIWQ
