As China continues its march on the road to becoming a “great modern” socialist nation by mid-century, the 2025 “Two Sessions” offer a key moment in its political calendar.
This annual conclave — comprising the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) — is slated for March 4, 2025, and will serve as a platform for China’s top leaders to chart a course for their country to navigate domestic and global challenges, from economic growth strategies to foreign policy stances, as well as technological ambitions. This year’s grand event – which is taking place amid global political and diplomatic uncertainties and domestic challenges – will not only chart China’s short-term roadmap but also strengthen its long-term vision.
China’s economic outlook is likely to be the dominant topic at this year’s “Two Sessions.” At the previous NPC, Prime Minister Li Qiang called for a cautious but optimistic stance toward the economy. Despite global economic turmoil and internal structural challenges, such as an aging population and rising geopolitical tensions, Beijing has been upbeat about its ability to bounce back. In 2023, China topped its GDP growth target, posting a growth rate of 5.2%, proving itself as the engine of global economic recovery.
China is expected to pursue a proactive economic policy, laying stress on fostering domestic demand, expediting technological innovation, and modernising infrastructure. The government is likely to initiate steps that further integrate the “dual-circulation” strategy in an attempt to boost both domestic consumption and international trade. Being the largest contributor to GDP, domestic consumption will be the main focus, with more targeted policies to invigorate spending. Also, China may announce expanded fiscal measures to stimulate growth, such as issuance of more local government bonds and higher transfer payments from the central government to localities.
Another important economic priority is likely to be investment in emerging industries, especially Artificial Intelligence (AI), new energy vehicles (NEVs), and biotechnology, which are considered as crucial for China’s long-term competitiveness, especially in the face of growing global competition. NEV is a term used in China for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs). AI is expected to be the key talking point during the “Two Sessions,” especially in the backdrop of the spectacular rise of firms like DeepSeek, which has shook the AI industry worldwide. The “Two Sessions” are likely to reiterate China’s commitment to becoming a global leader in AI technology. In the same context, local governments are also planning innovation platforms, industrial integration, and regulatory frameworks to augment AI’s growth.
China’s growing emphasis on technological self-reliance and innovation will also figure prominently at the “Two Sessions.” The country has made leap-frog progress in high-tech industries, such as AI, semiconductors, quantum computing, and robotics, over the past few years. These sectors are expected draw huge investments in the face of growing competition from the US and other Western countries. The R&D funding is expected to go up by 10% in 2025, while new policy frameworks will also be put in place to promote innovation. Beijing is aiming to build a healthy ecosystem where AI, 5G, and green technologies together propel economic growth.
China – which is committed to carbon neutrality – is already making huge investments in green technologies which, it says, will play a huge role in its growth trajectory. Therefore, the “Two Sessions” are expected to give a further fillip to the nation’s push for the adoption of renewable energy, electric vehicles, and energy-efficient technologies. The country believes that integration of green development goals with AI and digital technologies is the key to building high-tech industries. The Chinese company BYD has emerged as the world's largest manufacturer of NEVs. The rollout of NEVs, especially by BYD, will be one of the major drivers of this green push. All these plans will serve as the building blocks of Beijing’s strategy to tackle both domestic environmental challenges and international climate commitments.
The “Two Sessions” will also set the tone of China’s foreign policy priorities in an increasingly complex global geopolitical and geostrategic landscape exasperated by economic uncertainties. China is likely to accentuate its role as a stabilizing force on the precarious global political stage. Foreign Minister Wang Yi will explain China’s diplomatic approach vis-à-vis ongoing conflicts such as Ukraine and Gaza and other global crises.
China has consistently called for multilateralism and diplomatic dialogue in its foreign policy dealings. This year’s “Two Sessions” are expected to reaffirm China’s stance on international issues, promoting peaceful conflict resolutions rather than unilateral use of force. This strategy is consistent with China’s vision of peaceful coexistence. The Chinese leadership will likely reiterate its principled stance on the Ukraine conflict, calling for dialogue to end the fighting, as well as renewing its call for a two-state solution to the Israeli-Palestinian issue.
China’s roller-coaster relations with the US will receive particular attention. As simmering tensions between the two largest economies of the world continue to escalate, especially in areas such as trade, technology, and military security, Beijing’s stance on crucial issues like Taiwan, technology, and trade will be thoroughly analysed. Although China believes in peaceful coexistence, its unequivocal stance on sovereignty, particularly regarding Taiwan, will be a central theme during the “Two Sessions.” This geopolitical dynamic, coupled with China’s pursuit of a more resilient economy, will determine the country’s broader diplomatic efforts.
The 2025 “Two Sessions” will also discuss China’s defence strategy. Beijing continues to pursue a defensive military posture despite hikes in defence budget — with a proposed 7.2% rise for 2025. The People’s Liberation Army has steered clear of foreign conflicts as, unlike America, it is focused on safeguarding national interests rather than projecting power abroad. Nonetheless, as global tensions escalate, particularly in the Indo-Pacific region, China is expected to continue modernization of its military.
The “Two Sessions” participants are likely to underline the need for a credible defence to safeguard national sovereignty, especially in the backdrop of rising defence spending by other nations. While China seeks to stay away from unnecessary brinkmanship, its increasing defence capabilities show the nation’s focus on strategic deterrence. The “Two Sessions” are expected to underpin this defensive stance.
The writer is a student and freelance contributor.
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