Recent developments in China are of great importance for global competition.

According to the Ministry of Finance, from January to May 2025, the total budget revenues of central and local governments decreased by 0.3% year-on-year, amounting to 9.66 trillion yuan (1.34 trillion dollars). However, during the same period, budget expenditures increased by 4.2%, reaching 11.3 trillion yuan (1.57 trillion dollars).

In the first five months of the year, the budget deficit approached 230 billion dollars. The government intends to increase budget expenditures to stimulate growth by raising the target ratio of the budget deficit to gross domestic product from 3% to 4%.

These developments raise questions about China's economic growth targets and their impact on global competition. In particular, there is curiosity about how the increasing expenditures will affect the economy.

In 2024, China set its central and local government budget revenues at 21.97 trillion yuan and budget expenditures at 28.46 trillion yuan. The targets for this year have been further increased to support growth.