China is stuck in its longest deflation crisis in decades, and the numbers keep getting worse. Prices across the country have been falling for two straight years, and analysts say 2025 could be the third.

The country’s top leaders set an optimistic growth target but gave few hints of how to achieve it as their export-led strategy is challenged by rising tariffs on Chinese goods.

China is keeping its economic growth target at “around 5%” for 2025 despite a looming trade war with the United States and other headwinds.