China has announced plans to implement additional monetary measures to support its economy, with a senior economic official stating on Thursday that the country will further cut interest rates next year to stimulate economic activity.

Pan Gongsheng, Governor of the People’s Bank of China, said in a press conference: "We will adjust the reserve requirement ratio and interest rates as needed, based on domestic and global economic and financial conditions."

The reserve requirement ratio (RRR) is a key monetary policy tool used by the central bank to regulate liquidity in the financial system. Increasing the RRR limits banks' lending capacity, helping to control inflation, while reducing it boosts liquidity, encouraging lending and economic growth.

Meanwhile, China has reaffirmed its commitment to maintaining its 5% GDP growth target for 2025, despite economic headwinds, including rising trade tensions and a slowing domestic economy.

Zheng Shanjie, Chairman of the National Development and Reform Commission, expressed confidence in China’s ability to achieve this goal, despite growing global uncertainties and weak domestic demand.

To attract private sector investment, China plans to launch major projects in strategic sectors such as railways, nuclear energy, and water conservation, aiming to drive economic growth.

The growth target was officially announced in a report presented by Premier Li Qiang during the opening session of the National People’s Congress. This goal reflects the government's ambitious approach to overcoming economic challenges, including the prolonged real estate crisis, sluggish consumer spending, and weak private sector investment.