China used its annual “two sessions” meetings to send a clear message: it wants to be seen as steady, forward-looking and in control, even as it grapples with a weak domestic economy and a more volatile world, says BBC.
The National People’s Congress (NPC), China’s legislature, and the Chinese People’s Political Consultative Conference (CPPCC) have now ended. While the NPC has broad formal powers, including approving laws, constitutional changes and state budgets, it largely endorses decisions already taken by the senior leadership of the Chinese Communist Party.
Even so, the meetings are closely watched because they offer one of the clearest signals of Beijing’s policy priorities.
A central theme this year was stability.
President Xi Jinping’s broader ambition of turning China into the world’s leading superpower depends heavily on whether he can keep the economy on course. That challenge has grown more complex in what Beijing sees as an uncertain global environment, shaped by an unpredictable White House and war in the Middle East.
China’s answer appears to be a mix of tighter economic management, stronger domestic demand and a renewed push to dominate future industries.
Measures aimed at encouraging households to spend more are part of an effort to steady an economy that has lost momentum. At the same time, Beijing is pressing ahead with its drive for technological leadership, hoping the rest of the world will increasingly look to China for advanced factory robots, artificial intelligence models and other high-end products.
The government is also continuing to expand renewable energy production, a move that supports its long-term goal of greater self-reliance and reduces the need for imported oil and gas, including supplies from Iran.
The tone of the meetings mattered as much as the policy signals. The carefully choreographed setting inside Beijing’s Great Hall of the People, with tightly managed proceedings and scripted presentations, was intended to project order and discipline. That image stands in deliberate contrast to the turbulence that Chinese officials see elsewhere, particularly in Washington.
Chinese leaders appear to believe the geopolitical balance is shifting in their favour. Xi is likely to see an opening for China as the United States is distracted, even though Beijing remains aware that its own economic problems could still limit its rise.
Technology stood out as the clearest policy priority.
Under the 15th Five-Year Plan, Beijing is betting that scientific breakthroughs and faster adoption of AI will help power the next stage of growth. Officials have introduced an “AI+” plan to spread AI across manufacturing, logistics, healthcare and education.
Research and development spending on technology is set to rise by about 7 per cent. China is also channelling resources into semiconductors, robotics, biotechnology, quantum computing, 6G and brain-computer interfaces.
That marks a deeper shift in China’s growth model. For decades, expansion was driven mainly by property and infrastructure. Now policymakers are trying to replace that engine with technology and industrial upgrading.
The lower growth target of 4.5 to 5 per cent, the weakest since 1991, reflects that slower outlook.
Still, doubts remain over whether technology alone can deliver what Beijing wants.
Analysts say stronger household spending is essential, but Chinese consumers remain cautious. Compared with other major economies, consumption is weak, while the property downturn has damaged household wealth and confidence. High youth unemployment has added to that unease.
Beijing has acknowledged the problem and promised to “vigorously stimulate consumer demand”. Officials have pointed to future plans to raise incomes, but offered no specifics.
Some measures were outlined. Government spending on childcare will increase. Authorities also said they would expand childcare and eldercare services and enforce paid leave, steps meant to ease financial pressure on families and encourage spending.
Minimum retirement benefits for rural and non-working urban residents were raised, but only by the equivalent of $3 a month, a move mocked on Chinese social media as insignificant.
Other proposals, including more support for housing for first-time married couples, adjustments to parental leave and continued trade-in schemes for household goods, were mentioned without detail.
Beijing has also signalled greater willingness to borrow to fund infrastructure, welfare and industrial projects, a noticeable shift from earlier caution over debt.
But that approach carries risks. State-backed investment has already drawn criticism for overcapacity, especially in electric vehicles, fuelling domestic price wars and trade friction abroad.
For now, China is betting that stability, innovation and industrial policy can carry the economy forward. Whether that strategy works may depend less on official plans than on whether ordinary households feel confident enough to spend.
