China will mobilize billions of dollars to support emerging tech firms - and wants more foreign investment. That’s a key message from Beijing, as the country's top legislators gather to set out the country's plans.
Lawmakers also promised more market reform and stressed that China's 5% GDP growth target is realistic. Our correspondent Jen Copestake has the latest.
#2025ChinaAgenda #China #Chinanews #economy #ChinaEconomy
Lawmakers also promised more market reform and stressed that China's 5% GDP growth target is realistic. Our correspondent Jen Copestake has the latest.
#2025ChinaAgenda #China #Chinanews #economy #ChinaEconomy
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NewsTranscript
00:00Well, Jamie, that was a rather long press conference at just under two and a half hours
00:05and we heard from numerous top officials there.
00:08We heard that the chairman of China's National Development and Reform Commission, Zheng
00:13Caixi, said he was confident that China is going to meet this growth target, the GDP
00:18growth target of 5%.
00:20He reiterated what we've been hearing here in the last couple of days, that China has
00:24a solid economic foundation and that despite internal and external challenges to the economy,
00:30everything would be fine to reach that target.
00:33Finance Minister Len Feng said that China had ample tools in reserve to deal with any
00:38possible external and domestic uncertainties that may arise.
00:42He said the government also has policy tools to play with, so it will be able to successfully
00:46reach 5% GDP growth.
00:49Now the official said that more stimulus measures can be used if needed.
00:55People's Bank of China Governor Pangong Chen said at an appropriate time it would cut interest
01:00rates and also cut the amount of money that banks are required to hold in reserve.
01:06The official said it was a priority for them to keep the UN stable at a reasonable and
01:10balanced level.
01:12Now all of this comes as China continues to face a trade war with the US, with America
01:17increasing tariffs on Chinese imports to 20%.
01:21Commerce Minister Wang Wantao was asked about retaliatory tariffs and if the conflict between
01:27China and the US would be prolonged.
01:30Now he said that the US is distorting the truth about China's involvement in America's
01:35fentanyl drug crisis, saying that protectionism is a dead end.
01:40And Minister Wang said that he's willing to meet his American counterparts at what he
01:44called an appropriate time.
01:47We also heard from the head of China's Securities Regulatory Commission, who said that China
01:51will accelerate a new round of capital market reform and opening up.
01:57This will also enhance the healthy development of the stock market.
02:00He said that China would deepen the effectiveness of supervision and law enforcement while improving
02:05coordination between investment and financing, development and promoting adaptability in
02:11the market's fundamental institutions.
02:14Jen briefly, a lot of focus on this new fund to support tech enterprises.
02:24That's right.
02:25There was quite a few questions from the journalists who were present about how tech companies
02:28are going to be funded in the future in China.
02:30The officials actually joked that this was becoming more of a tech conference than an
02:33economic press conference.
02:35So yes, China announced a new fund.
02:36It's called the State Venture Capital Guidance Fund to encourage high tech innovation in
02:41fields like artificial intelligence, quantum computing and energy storage.
02:45Now, this will see the expansion, the doubling of a re-lending facility for the tech sector
02:50that did sit at sixty nine billion dollars.
02:52This will go up to one hundred and thirty eight billion dollars of investment over the
02:55next 20 years.
02:57The central bank governor said foreign investment in tech companies also is going to be encouraged
03:01and he welcomes international investors to invest in China's high tech firms.
03:07He said China is going to oppose any imposition of unjust investment barriers.
03:12This is perhaps a nod to the US's recent restrictions on tech going into China.
03:18So spending on tech is going to increase by eight point three percent on last year.
03:22That will be over one hundred and sixty five billion dollars.
03:25And China's security regulator, Wu Qing, said that the surprise success of artificial intelligence
03:30startup DeepSeek had led to re-evaluations of China's tech stock prices.
03:35Jen, thank you for that.
03:37Our correspondent Jen Capestake in Beijing.