The Two Sessions: A Window into China’s Governance and Future

Introduction to the Two Sessions

Every year, Beijing hosts one of China’s most significant political events: the Two Sessions. This gathering includes the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC). The NPC, often described as a rubber-stamp parliament, comprises nearly 2,900 delegates who convene to discuss and approve major policies. The CPPCC, an advisory body, includes diverse members ranging from business leaders to academics. Together, these meetings set the tone for China’s political and economic agenda for the year. While largely ceremonial, the Two Sessions provide crucial insights into government priorities and challenges.

Economic Struggles and Measures

China’s economy is currently facing significant challenges, including sluggish consumption, a prolonged property crisis, and rising government debt. To address these issues, Premier Li Qiang is expected to announce a 5% economic growth target, aligning with recent years. The government plans to boost consumption by increasing the deficit ratio from 3% to 4%, although massive stimulus is unlikely. These measures aim to stabilize the economy without resorting to drastic interventions, reflecting a cautious approach to recovery.

The Focus on Artificial Intelligence

Artificial Intelligence (AI) is emerging as a key area of focus for China. The DeepSeek AI model, launched earlier this year, exemplifies China’s commitment to technological innovation. This model competes with global counterparts, signaling China’s push for technological self-reliance. The government is expected to announce policies supporting AI development, aiming to drive innovation across sectors like healthcare and technology. This strategic focus highlights China’s ambition to be a global leader in AI.

Trade Tensions with the United States

Trade relations between China and the US are under strain. China has imposed tariffs of up to 15% on US agricultural products in retaliation against US tariff increases. These tensions could escalate into a trade war, impacting both economies. The situation underscores the challenges China faces in stabilizing external demand, complicating efforts to boost economic growth. Understanding these trade dynamics is crucial for grasping China’s economic strategy.

Support for Private Enterprises

The Chinese government is signaling strong support for private enterprises, recognizing their role in driving growth. President Xi Jinping’s meetings with business leaders like Jack Ma and Ren Zhengfei highlight this strategy. By supporting private sector innovation and technology, the government aims to foster self-reliance andodářství growth, indicating a strategic shift in leveraging private sector energy for national goals.

The Defense Budget Announcement

China is expected to unveil its 2024 defense budget, following a 7.2% increase last year. As the second highest spender after the US, this increase reflects China’s focus on regional security and military modernization. The budget announcement will be closely watched for insights into China’s strategic priorities, indicating how it plans to maintain its global standing and address security challenges.

This structured approach provides a comprehensive overview of China’s current political and economic landscape, highlighting key areas of focus and the strategies being employed to address challenges.