China’s annual “Two Sessions,” the country’s most significant annual political gatherings which start on March 4 this year, will set out the policy directions that will shape the world’s second-largest economy and its geopolitical stance.
The meetings, comprising the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), allow policymakers to outline their priorities for the coming year. The NPC, China’s top legislative body, and the CPPCC, its highest political advisory body, convene simultaneously in Beijing, and typically last about a week.
During these sessions, top government leaders, legislators political advisors and industry heads discuss and approve policies that impact China’s domestic and foreign agenda. The meetings also include ministerial press briefings, where officials address public concerns and clarify policy directions.
Here’s a look at what’s on the agenda this year, and why it matters.
Economic Outlook
One of the most closely watched announcements during the “Two Sessions” is China’s GDP growth target. In 2024, the target was set at “around 5 percent,” a goal that was met with the help of strategic economic measures. Analysts predict a similar target for 2025, as policymakers aim to balance economic stability with long-term structural reforms.
China’s Central Economic Work Conference in December 2024 signalled a shift in macroeconomic policies, transitioning from a “prudent” to a “moderately loose” monetary policy for the first time in 14 years.
The upcoming government work report is expected to outline fiscal policies, infrastructure investments, and measures to stimulate domestic consumption, which has seen a decline over the past few years. Additionally, the handling of local government debt and industrial restructuring will be key areas to watch.
According to the Asia Society Policy Institute, acknowledging modest domestic demand, Beijing is expected to lower its annual consumer price inflation target to around 2%—its lowest in over two decades—down from 3% or higher in previous years.
Strategic Priorities
Chinese President Xi Jinping and other top leaders will participate in deliberations, engaging with legislators and advisors across different sectors. These discussions often provide insight into the government’s strategic priorities.
Last year, Xi introduced the concept of “new quality combat capabilities” in a military delegation meeting, underlining defence modernization. Similar key concepts may emerge this year, reflecting China’s evolving policy direction.
Foreign Policy
With global geopolitical tensions rising, Chinese Foreign Minister Wang Yi’s press conference during the “Two Sessions” will be a critical event. Given recent shifts in U.S. leadership and evolving dynamics with Russia and Europe, China’s diplomatic approach will be under scrutiny. Wang is expected to address China’s stance on global conflicts, trade policies, and its position in multilateral forums.
Tech And Beyond
China’s advancements in artificial intelligence (AI) have been a focal point of global attention, particularly with the rise of DeepSeek, an AI model that has disrupted the industry. AI and technological innovation are likely to feature prominently in policy discussions, with a focus on fostering domestic innovation, supporting AI-driven industries, and countering U.S. restrictions on tech development.
n recent years, China has made remarkable progress in key technological fields, exemplified by the “Six Little Dragons”—a group of six Hangzhou-based startups, including AI innovator DeepSeek, robotics firm Unitree Robotics, video game studio Game Science, brain-machine interface pioneer BrainCo, and spatial design company Manycore.
Some of the deputies and committee members are corporate executives and leading researchers. AI-related proposals and suggestions presented this year are certain to be a major point of interest for China watchers.
Public And Social Welfare
Beyond economic and geopolitical concerns, the “Two Sessions” will also address social policies, including employment, healthcare, education, and environmental sustainability. Measures to boost domestic consumption and support struggling industries will likely be introduced to ensure economic growth translates into improved livelihoods.
Global Impact
The decisions made during China’s “Two Sessions” not only impact its 1.4 billion citizens but also influence global economic trends, supply chains, and international relations.
As China navigates economic recovery, technological competition, and diplomatic challenges, the policies emerging from these meetings will shape the course of 2025 and beyond.
