China's annual major political event, the National People's Congress, is set to begin this week, gathering the nation's top leaders and thousands of provincial officials to endorse decisions made by the Chinese Communist Party. While the Congress is largely ceremonial, it serves to signal the government's priorities for the coming year and disseminate instructions to party members and officials nationwide.
This year, the focus remains on fostering innovation and boosting domestic consumption. Analysts anticipate an economic growth target of around 5%, despite challenges in the real estate sector and consumer spending. Trade tensions with the U.S. under President Trump add another layer of uncertainty, with forecasts projecting a lower growth rate of 4.6%.
The government's priorities include enhancing domestic demand, promoting innovation in science and technology, and supporting the private sector for economic growth. President Xi Jinping's recent meetings with business leaders signal high-level support for the private sector.
China's economy is increasingly geared towards technology and industry, emphasizing self-reliance over household incomes and middle-class expansion. The Congress is expected to maintain this focus on innovation rather than shifting towards boosting consumption.
Foreign policy discussions, particularly regarding U.S.-China relations and Taiwan, will be closely watched. China's response to U.S. tariffs and its stance on global issues like the Ukraine war will be key points of interest.
The National People's Congress, comprising nearly 3,000 delegates, does not have legislative power but provides insights into the government's priorities and future policy direction. The concurrent meeting of the Chinese People's Political Consultative Conference adds diversity to the discussions during the 'Two Sessions' event.
