China’s Two Sessions 2025
The "Two Sessions" refer to the annual gatherings of China’s highest legislative and political advisory bodies: the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) National Committee. Both institutions operate on five-year terms and convene a plenary session each year. The current 14th NPC consists of nearly 3,000 deputies, while the 14th CPPCC National Committee includes over 2,000 members.
The NPC functions as China’s top legislative body and holds the power to elect national leaders, approve government budgets, and endorse national development plans, among other responsibilities, while the CPPCC plays a key role in China's system of multiparty cooperation and political consultation under the leadership of the Communist Party of China (CPC), and its members advise on major national policies and key issues spanning economic, political, cultural, social and ecological development.
In 2025, the NPC and CPPCC National Committee sessions commence on March 4 and 5, respectively, in Beijing, with an expected duration of about a week.
Economic Growth and Fiscal Policies
Key goals, including those for GDP growth and inflation as measured by the consumer price index (CPI), are expected to be unveiled when Premier Li Qiang delivers the government work report at the opening session of the NPC.
China is anticipated to set a Gross Domestic Product (GDP) growth target of approximately 5% for 2025, maintaining the previous year's objective. To achieve this target, the government plans to implement more proactive and effective macroeconomic policies, including increasing the budget deficit to 4% of GDP, up from 3% in the prior year. Additionally, authorities plan to issue 3 trillion yuan in special treasury bonds, significantly higher than the previous year, with funds allocated for consumer subsidies, business equipment upgrades, and strategic investment projects. Local government special bonds issuance is also expected to increase, with estimates ranging from 4.5 to 4.7 trillion yuan. These measures aim to stimulate domestic demand and counteract external economic pressures.
Financial Sector Support
In a concerted effort to bolster the private sector, China's central bank and financial regulators have pledged to enhance financial support for private enterprises. This initiative includes increasing lending and expanding fundraising channels, with major financial institutions committing substantial investments. For instance, the Industrial and Commercial Bank of China (ICBC) has pledged no less than 6 trillion yuan for private enterprises over the next three years. These efforts underscore the importance of private sector innovation for China's technological advancement.
Technological Innovation and Artificial Intelligence
Technological innovation, particularly in artificial intelligence (AI), is expected to be a significant focus during this year's "Two Sessions." The emergence of DeepSeek, China's generative AI chatbot, has highlighted the nation's advancements in AI technologies. Over the past month, DeepSeek has made notable impacts across the global AI industry, capital markets, and various sectors, owing to its impressive inference performance, cost-effectiveness, and open-source advantages. Domestically, companies such as Tencent, Baidu, and BYD have begun integrating DeepSeek's models into their products, reflecting China's commitment to leading in technological advancements. Discussions are expected to focus on building innovation platforms, promoting deeper industry integration, and improving policy frameworks to support the burgeoning AI industry.
Foreign Policy and Global Relations
The foreign minister's press conference during the "Two Sessions" is anticipated to be a focal point, especially in light of recent geopolitical developments. This event will provide insights into China's diplomatic strategies and its approach to current global challenges, including its relations with the United States, Europe, Russia, and the Global South. Given the evolving international landscape, the foreign minister's briefing will be among the most closely watched events, offering a window into China's foreign policy priorities.
Leadership Engagements
During the "Two Sessions," Chinese leaders, including President Xi Jinping, will participate in deliberations with NPC delegations and CPPCC committees. These interactions offer insights into the central leadership's strategic thinking and priorities for the year. For instance, President Xi's recent meetings with top entrepreneurs from high-tech sectors underscore a focus on technological self-reliance and supply-chain security. The speeches delivered by members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee during these group activities often reveal the central leadership's strategic thinking for the year.
Implications and Outlook
The "Two Sessions" serve as a platform for setting China's policy trajectory, with economic stability, technological innovation, and geopolitical positioning as central themes. The legislative and advisory discussions during these sessions will provide key insights into the country's strategic priorities for 2025 and beyond, influencing both domestic policies and China's role on the global stage.