China’s 2025 Two Sessions: 6 Key Takeaways 

This piece was prepared by APCO’s Greater China team.

The annual meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), known as the “Two Sessions,” took place in Beijing from March 4 to 11. Thousands of delegates convened for this annual political gathering to review the progress made in 2024 and set targets for 2025, the final year of the 14th Five-Year Plan. Premier Li Qiang presented the Government Work Report (GWR) on March 5, establishing the key policy priorities for this year. The Two Sessions also included ministerial press conferences on the economy (March 6), foreign relations (March 7) and people’s livelihood (March 9).

1. The government projected confidence in China’s economic growth this year despite rising U.S.- China trade tensions.

   China has set an ambitious GDP growth target of “around 5%” for the year, aligning with its goal to double the economy’s size by 2035. Economists, however, project a more modest 4.5-4.6% growth, citing weak domestic demand and trade tensions as key challenges. Commerce Minister Wang expressed confidence in achieving the target, highlighting market diversification and strong global demand for Chinese exports. To bolster growth, the government plans increased fiscal spending, raising the deficit-to-GDP ratio to 4% and issuing more special bonds. Additional measures may be introduced as needed to sustain economic momentum.

2. Boosting consumption is the top-priority task for 2025.

   The GWR prioritizes boosting consumption, reflecting concerns over sluggish consumer spending and weak confidence, with retail sales growth slowing to 3.5% in 2024. The government aims to address root causes, including job market challenges and real estate instability, by increasing incomes, expanding employment and reducing financial burdens. Efforts to stimulate immediate consumption focus on trade-in programs and service sectors like tourism, with trade-in funding doubling to RMB 300 billion. While early data shows success of the last year’s trade-in programs, broader measures may be needed to significantly impact overall consumption, with a new action plan expected soon.

3. Scientific and technological innovation remains a top priority, with a focus on integrating it into various industries.

   At the Two Sessions, China emphasized enhancing competitiveness in cutting-edge technologies. The GWR designates developing new quality productive forces as a major task for 2025, focusing on biomanufacturing, quantum technology, embodied AI and 6G telecommunications. The government expects the private sector to drive technological innovation, highlighted by President Xi’s meeting with business leaders. The GWR pledges support for “unicorn and gazelle companies” and announces a RMB 1 trillion national venture capital fund. Additionally, it stresses upgrading traditional industries and expanding AI applications through the “AI Plus” initiative.

4. Beijing will take steps to help exporters weather a tougher external environment.

   The GWR highlights the importance of exports, which contributed significantly to China’s growth in 2024. However, 2025 poses challenges, including new U.S. tariffs imposed by President Trump. Commerce Minister Wang warned of severe foreign trade conditions. To stabilize trade, the GWR plans to expand export credit insurance, improve financial services and boost cross-border e-commerce. Geographical diversification and new trade agreements are also priorities. Additionally, the GWR addresses production capacity and price competition, pledging to reduce steel output and promote orderly development in key industries like electric vehicles and solar.

5. China will double down on efforts to attract foreign investment, especially reinvestments.

   The GWR pledges to vigorously encourage foreign investment amid a 27% drop in 2024. Emphasizing reinvestments, it outlines measures to improve the business environment, such as enhancing free trade zones and ensuring equal treatment for foreign enterprises. The GWR highlights the Hainan Free Trade Port and sectors like telecommunications, healthcare and internet-related industries. Efforts to attract foreign talent include optimized visa policies and better support services.

6. China is committed to being a global force of stability but will retaliate against any trade barriers.

   At the Two Sessions’ press conference on foreign affairs, Foreign Minister Wang Yi emphasized China as a stabilizing global force, contrasting it with the current U.S. administration. He criticized “profit-driven” “major powers” and highlighted China’s commitment to multilateralism and global development. Wang reiterated China’s stance on U.S. tariffs and fentanyl, warning of countermeasures if trade barriers persist. In contrast, he adopted a conciliatory tone towards the European Union (EU), expressing hopes for closer ties and resolving issues amid global complexities, suggesting opportunities for China in strained U.S.-EU relations.

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