China-EU cooperation mutually beneficial

Premier Li Qiang delivered the Government Work Report during the annual session of the National People's Congress on March 5, outlining the Chinese government's economic priorities for this year. As an economist and former undersecretary at Italy's Ministry of Economic Development, I have been studying China's economy and its relationship with Europe.

China's economy is at a critical juncture. After decades of rapid growth, China now faces significant challenges, including rising geopolitical tensions, and the need for structural reforms.

Despite all these challenges, China has set a GDP growth target of about 5 percent, a figure that underscores the necessity of stabilizing the economy while addressing underlying vulnerabilities. That China has set a growth target of 5 percent for 2025 reflects its pragmatic approach. The country has realized that rapid growth may no longer be sustainable in the face of an aging population, increasing debt and rising unemployment. Therefore, it is vital for China to transition toward a model of growth that emphasizes quality and sustainability over mere quantity.