China has outlined its economic priorities for the second half of 2025, with a strong emphasis on boosting consumer demand and stabilizing markets to achieve the country's GDP growth target of approximately 5 percent. This strategic focus aims to solidify the nation's economic resilience and support global economic recovery.

Government agencies have recently convened to discuss economic strategies after China demonstrated robust economic performance in the first half of 2025. With proactive macroeconomic policies in place, the economy recorded a GDP growth of 5.3 percent year-on-year, while retail sales rose by 5 percent, highlighting the vital role of domestic demand, which accounted for 68.8 percent of GDP growth.

According to the China Federation of Logistics and Purchasing, the value of social logistics surged by 5.6 percent year-on-year to reach approximately 171.3 trillion yuan, or 23.87 trillion dollars. This figure indicates a positive development trend, suggesting that China is effectively tapping into its domestic demand potential and enhancing demand structure.

Looking forward, the logistics sector is expected to sustain positive momentum, particularly in areas such as manufacturing transformation, green development, and consumption, as government policies continue to yield fruitful results. This outlook comes amid a backdrop of rising challenges and external uncertainties that have yet to significantly hinder growth.

The Ministry of Finance announced plans to issue 1.3 trillion yuan in ultra-long special treasury bonds to effectively fund major national initiatives and projects, thereby stimulating further economic activity. This issuance aims to support critical sectors and enhance the consumer goods trade-in process.

Fiscal and monetary policies will be essential in expanding domestic demand, which remains a top priority for policymakers. Experts emphasize that reinforcing these policies will help unlock the spending potential of the Chinese population and drive overall economic growth.

In a related development, the State Administration for Market Regulation has outlined priorities for reinforcing market regulation, focusing on strengthening the domestic market, enhancing product quality, and optimizing oversight mechanisms, particularly concerning the platform economy.

Positive feedback from foreign financial institutions has been notable, with firms such as UBS and Goldman Sachs revising their 2025 GDP growth forecasts upward following China's stronger-than-expected economic data. The International Monetary Fund has also increased its growth forecast to 4.8 percent, driven by robust activity and transformative economic policies.

Citi's chief economist noted that China's GDP growth figures indicate a solid foundation for achieving the annual target, further speculating on the potential for recovering nominal GDP growth, which could enhance the appeal of Chinese assets.

The alignment of domestic policies and external economic factors suggests a cautiously optimistic outlook for China's economy as it navigates through both opportunities and challenges in the latter half of the year.