THE Two Sessions have formally convened in China as Premier Li Qiang delivered the anticipated 2025 Government Report presenting a policy roadmap for the year ahead.
The Two Sessions, refers to the consecutive meetings of two key political bodies in China, the Chinese People’s Political Consultative Conference (CPPCC) and the National People’s Congress (NPC), China’s legislature.
On Wednesday, March 5, 2025, the NPC held the opening meeting of the annual Two Sessions, where Premier Li presented the 2025 Government Work Report, 2025 GWR on behalf of the State Council.
The report outlines a comprehensive set of economic and development objectives for the year ahead, including China’s GDP growth target and strategies for achieving its economic goals.
Global Political and Economic Turbulence and China’s Consistent Growth
In a highly turbulent global environment, China’s growth of economy remains a crucial centre of attention.
The 2025 GWR has signalled a growth of 5% in the following year.
China has a legacy of meeting its annual growth targets.
Despite facing a challenging external environment, the repetition of the ‘around 5 percent’ figure showcases a position of confidence and a stronger policy support for domestic demand.
The fiscal targets reinforce this outlook, with special local government bond issuance rising by 12.8% from RMB 3.9 trillion to RMB 4.4 trillion, and the ultra-long-term bond issuance target increasing by 30% from RMB 1 trillion to RMB 1.3 trillion.
Additionally, the fiscal deficit target has been raised from 3% to 4% of GDP.
These adjustments signal a more proactive fiscal policy approach this year while maintaining a focus on long-term debt sustainability.
Along with the focus on the domestic economy, China’s focus on opening up also remains consistent.
The GWR specifically mentions in a separate section about high level opening up to the outside world.
There is a signal that suggests policy support for exporters will increase this year, with measures such as expanding cross-border e-commerce and logistics, along with accelerating the construction of overseas warehouses.
Furthermore, China is dedicated to supporting foreign investment by guaranteeing national treatment for foreign enterprises, particularly in resource access, qualifications, and government procurement.
The continued development of Free Trade Zones and the Hainan Free Trade Port plays a crucial role in this strategy.
These zones aim to improve China’s business environment and provide foreign investors with valuable opportunities to expand their market presence.
The GWR also emphasizes the expansion of international partnerships through agreements like the upgraded China-ASEAN Free Trade Area, participation in the Digital Economy Partnership, and the Trans-Pacific Partnership.
These initiatives seek to enhance multilateral trade systems and expand China’s global trade network, further solidifying its role in the global economy.
The report addresses the hurdles the world economy is facing, like the rise in protectionism that leads to disruption in global supply chains and economic cycles.
As international markets experience volatility and investor confidence wavers due to geopolitical tensions, China maintains cautious optimism in the GWR.
The Chinese government maintains confidence in the country’s institutional strengths, market expanse, robust industrial system, and skilled workforce.
These factors, it asserts, will support the long-term stability and growth of the economy despite evolving global dynamics.
Technology remains a central focus
As China strengthens its economic foundations through fiscal and trade policies, technological innovation has surfaced as a key pillar in sustaining long-term growth and global competitiveness.
Recently, Chinese AI firm DeepSeek has recently gained significant prominence, emerging as a strong contender against other tech giants in the market like OpenAI.
Its advancements underscore China’s expanding influence in the global technology sector.
The GWR pledged to enhance technological self-reliance and fast-track major scientific projects.
China will reform research institutions, boost industry-academia cooperation, and empower firms to drive innovation.
Additionally, the report also promises policy support to accelerate the commercialization of technological advancements.
‘Scientific and technological innovation, coupled with industrial advancement, serve as crucial drivers of productivity,’ Xi stated on the sidelines of the annual parliamentary sessions.
This signifies China’s strategic push towards technological advancement aiming to solidify its position as a leader in innovation driven growth.
—Chief of Digital Media & Deputy Editor in Chief of Pakistan Observer
