China's annual parliamentary session is set to kick off in Beijing, with nearly 2,900 delegates gathering to discuss key issues facing the nation. The agenda is expected to prioritize harnessing the power of artificial intelligence and bolstering the economy.
The National People's Congress, the country's largely ceremonial parliament, will convene alongside the Chinese People's Political Consultative Conference in what is known as the Two Sessions. Premier Li Qiang is anticipated to announce an economic growth target of around 5%, reflecting the government's focus on economic stability.
China's economy is currently grappling with challenges such as sluggish consumption, a property crisis, mounting government debt, and the looming threat of a renewed trade war with the United States. In response to recent U.S. tariffs on Chinese products, Beijing retaliated by imposing additional tariffs on American farm goods.
The government aims to implement measures to stimulate consumption, including potentially increasing the deficit ratio. While significant stimulus is unlikely, efforts to support private enterprises and promote innovation are expected to be highlighted.
China's recent advancements in artificial intelligence, exemplified by the DeepSeek AI model, underscore the country's commitment to technological innovation. President Xi Jinping's engagement with business leaders signals strong support for the private sector, recognizing its role in driving innovation and technological self-reliance.
Furthermore, Beijing is set to unveil its defense budget for 2025, following a 7.2% increase in defense spending last year. The government's focus on economic recovery, innovation, and national defense underscores its strategic priorities for the year ahead.
