China is gearing up for its Two Sessions, scheduled to commence on March 5th. It is an event eagerly awaited in China’s political calendar.The Two Sessions incorporate the gatherings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), offering a stage to assess achievements and chart policy courses moving forward.
During the sessions, the Prime Minister, the President of the Supreme People’s Court, and the Procurator General of the Supreme People’s Procuratorate will present key reports for discussion and consultation. Over the years, these meetings have gained global significance, given China’s central role in the world economy and international affairs. Considering that China is projected to contribute 21 percent to the world’s growth in the coming five years, investors and decision makers from around the world are paying attention to what unfolds during these sessions. The outcomes of the Two Sessions will shape economic strategies, industrial policies, and international relations, directly influencing the global market.
This year’s meetings hold importance because of increasing uncertainties and China’s urgent domestic concerns. The two sessions will address changing geopolitical conditions and domestic economic challenges. Amid an evolving geopolitical landscape and economic challenges, the Chinese leadership will focus on multiple key areas.
Here’s what we can expect from the Two Sessions and why they matter: As 2025 marks the final year of China’s 14th Five-Year Development Plan, a comprehensive evaluation of the country’s achievements will be presented. The report will showcase the achievements that have been reached or surpassed and identify areas requiring attention and work ahead of the Five Year Plan for strategic development priorities.
Technology and innovation will remain at the forefront of discussions, especially in light of increasing Western restrictions on China’s tech sector. President Xi Jinping has already emphasized the need for self-reliance in technology, urging the development of high-quality new productive forces. New regulations and incentives are anticipated from the government to promote an environment that encourages innovation and technological progress. This will help Chinese businesses stay competitive on a scale without depending on technologies to the West.
The private sector’s role in driving economic growth, development, and technological progress will be another critical focus. President Xi’ s recent detailed discussions with industry figures like Jack Ma from Alibaba and Ren Zhengfei of Huawei underscore the government’s dedication to removing obstacles hindering competition and offering necessary legal safeguards for private enterprises.
Following the Two Sessions meetings, in China it is anticipated that there will be the introduction of policies, tools and incentives aimed at enhancing the sector promoting entrepreneurship and attracting foreign investments. China has been facing issues such as mounting government debt and persistent problems in the real estate market. Despite implementing measures to stabilize these areas further deliberations are likely to lead to policy actions geared towards mitigating financial risks and fostering long term economic development.
After the encouraging positive results from last year’s consumption boost, policymakers are looking into new approaches to encourage people to spend more money. This might involve expanding exchange programmes which offer rewards for buying produced goods and supporting city growth and infrastructure improvements to boost progress. One of the biggest challenges China faces is the increasing protectionism, decoupling, and trade barriers imposed by Western countries, particularly the USA. Washington has imposed sanctions on Chinese tech firms through measures such as the Chips and Science Act, targeting China’s semiconductor industry. Moreover, the U.S. has recently increased tariffs on Chinese electric vehicles by 100 percent, aiming to curb China’s dominance in this sector.
The upcoming meetings are expected to concentrate on formulating strategies to address these issues by broadening trade alliances and enhancing involvement in the Belt and Road Initiative (BRI) while also exploring markets to offset limitations imposed by the West. Notably, as some countries, like Panama, succumb to U.S. pressure to exit the BRI, China must refine its strategies to maintain global economic influence.
Central to the discussions at the Two Sessions will be the announcement of China’s growth objectives for 2025. Premier Li Qiang is expected to present the Government Work Report outlining policy focuses and economic objectives for China. Analysts predict a GDP growth target of 5 percent in line with the last year’s numbers and surpassing the International Monetary Fund’s projection of 4·6 percent. Alongside the GDP target, budget allocations and fiscal policies will indicate Beijing’s commitment to economic recovery. The recent Central Economic Work Conference in December has already promised a budget deficit, an increase in treasury bond issuance and extra measures to boost economic growth.
The upcoming Two Sessions will provide details on these strategies and their anticipated impact on economic development. People around the globe- particularly those in low income and middle income countries- anticipate that Beijing will implement policies that will help maintain global economic stability.
Amid the trade tensions between the USA and China. and the heightened restrictive policies after the arrival of US President Trump, several developing economies are turning to China for guidance on how to counter these issues and promote long term growth sustainably. Despite facing hurdles, Chinese leaders are steadfast in their commitment to steering towards stability, technological progress and international collaboration.
The upcoming Two Sessions will play a crucial role in setting out plans to tackle these challenges, solidifying China’s position as the anchoring player in the global economy. While tensions with the West persist, China is unlikely to be deterred; instead, it will double down on its efforts to sustain development, enhance innovation, and contribute to global prosperity.
The upcoming Two Sessions will offer insights into China’s policy directions beyond 2025.From evaluating the achievements of the 14th Five-Year Plan to setting the foundation for the 15th, from advancing technological self-reliance to strengthening the private sector, and from countering trade restrictions to boosting domestic consumption, China’s leadership will navigate a complex economic and geopolitical landscape.
Beijing’s decisions during this period will not impact China’s trajectory, but will also influence global economic stability and progress. Given the obstacles they face currently, China needs to stay committed to its dedication to creativity, sustainable development and global collaboration so it can keep on being one of the most influential in the world economy.
