Foreign chambers see great potential in China's economy as Government Work Report unveils new opportunities

Foreign chambers in China voiced their optimism for the potential and opportunities outlined in the Government Work Report submitted to the national legislature for deliberation on Wednesday. With the nation setting a GDP growth target of around 5 percent for 2025, the report reflects strong confidence in the stable development of the world's second-largest economy, despite increasing global uncertainties and challenges.

Speaking to the Global Times on Wednesday, Lorenzo Riccardi, chairman of the China-Italy Chamber of Commerce, said that the GDP growth target underlines China's commitment to development, with a particular focus on industrial modernization and market reforms.

"China is placing significant emphasis on incentivizing domestic consumption to reinvigorate economic growth and maintain a steady GDP target... These measures are expected to foster a more dynamic market environment and attract the attention of foreign investors."

To boost domestic demand is also highlighted in the Government Work Report, which states that the government "will firmly implement the strategy of expanding domestic demand, strengthen the domestic economy, drive its expansion and broaden international cooperation through further opening-up."

"The foreign business community and Italian companies in China are interested in all government measures to reboot domestic demand and grant benefits to FDI," he said.

The year 2025 marks the final year of China's 14th Five-Year Plan (2021-25) period and is also crucial to crafting the next five-year blueprint, the Xinhua reported.

Riccardi said that this year's "two sessions" hold particular significance. "Key areas of focus this year are the acceleration of the energy transition, and the development of infrastructure in which the Italian companies are interested in cooperating with local partners in the Chinese market," he said.

Oliver Oehms, executive director & board member of the German Chamber of Commerce in China - North China, told the Global Times that the outcomes of the "two sessions" have been well received by the German business community in China, who view the fiscal policy adjustments as a positive step toward revitalizing demand and fostering a more dynamic economic environment.

"China's economy continues to offer significant market potential, particularly in innovation and green development. German companies are increasingly localizing their R&D and production in China, not just for the domestic market but also for global markets," Oehms said.

"Additionally, German companies hope to see more effective on-the-ground implementation of equal treatment and a level playing field to fully contribute to China's GDP growth target," said Oehms.

China-Australia Chamber of Commerce (AustCham China) and its members are particularly interested in China's economic growth strategies, trade and investment policies, and regulatory reforms that impact foreign enterprises. The predictability and consistency of regulations are crucial for business confidence, and Australian companies are looking for policies that support greater market access, transparency, and legal certainty, Vaughn Barber, AustCham China chairperson, told the Global Times on Wednesday.

Several areas in the Government Work Report are of particular attraction to him, including the efforts to boosting domestic demand, technology and innovation, green and low carbon economy, continued commitment to opening-up, as well as support for investment from the private sector.

China's focus on new quality productive forces presents opportunities for Australia to collaborate in development and deployment of technologies that are important to each other's economic resilience and future prosperity, Barber said.

"China's economic growth outlook remains positive, driven by innovation, digital transformation, and sustainability initiatives. While global uncertainties persist, businesses that align with China's priorities — such as advanced manufacturing, green energy, and trade facilitation — are well-positioned to benefit from the evolving landscape," Barber noted.

The continued focus on opening-up to foreign investment is a welcome sign, reinforcing China's role as a significant contributor to global economic growth, the AustCham China chairperson said, noting that "given China's vast consumer base and its growing middle class, we see strong potential for Australian businesses across multiple sectors, particularly in areas that align with China's modernization priorities."

Loh Wee Keng, chairman of the Malaysian Chamber of Commerce and Industry in China, told the Global Times on Wednesday that "Given the current unfavorable global economic environment, the government's decision to set a 5 percent GDP growth target demonstrates its commitment to investment."

Additionally, Loh expressed optimism about China's strong development in smart networks and artificial intelligence, believing that "this will drive the emergence of a wave of new products."

Heads of foreign chambers remain optimistic about a wide range of booming sectors where opportunities are emerging for foreign investors in 2025.

For example, Loh highlighted promising emerging sectors for this year, such as 6G technology and artificial intelligence, expressing confidence that these industries will lead China's market development.

Riccardi said that 2025 marks the 55th anniversary of China-EU diplomatic ties and the 50th anniversary of China-Italy relations, providing a strong foundation to further enhance bilateral relations. Sectors such as new technology, sustainable development and digital trade are expected to see strong growth, creating valuable opportunities for Italian companies.

"Italian enterprises can play a key role in China's transition towards green energy and digital transformation, leveraging their expertise in innovation, advanced manufacturing, and high-end consumer goods. Additionally, China's push to strengthen domestic consumption could create new demand for premium Italian products in sectors such as fashion and food," Riccardi said.

German enterprises are eyeing new development opportunities in China, driven by the country's evolving economic priorities and policy directions, Oehms said, naming areas such as green development, innovation, and R&D.

Australian companies continue to see China as a critical market, with opportunities in mining, agribusiness, education, healthcare and energy trade, Barber said.

"We anticipate steady and sustainable growth, supported by policies aimed at strengthening domestic demand, improving the business environment, and enhancing foreign investor confidence," Barber said, noting that Australian businesses will also be watching closely for measures that address regulatory transparency, trade facilitation, and further market opening.

Talking about the emerging fields, the European Union Chamber of Commerce in China said in an interview with the Global Times on Tuesday that there could be a deepening of EU-China cooperation in the fight against climate change, "an area where there is significant overlap of interests, and where the US has begun to pull back."