China’s annual “Two Sessions” – the meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) – are key events that determine the country’s political and economic course for the coming year. In 2025, these sessions took on special significance, considering the completion of several strategic programs and the current global situation.
During the 2025 Two Sessions, China’s leadership presented an ambitious and well-thought-out strategy aimed at ensuring stable and high-quality economic growth amid rising global challenges and uncertainties in world markets. By setting a GDP growth target of around 5%, the Chinese authorities demonstrated a realistic approach that reflects a balanced assessment of external risks while emphasizing the transition from quantitative economic expansion to qualitative transformation through innovation and structural reforms.
The adoption of an unprecedented law on the private economy in the country’s history has become a significant signal for investors and the international community. This law is aimed not only at securing the rights of entrepreneurs but also at restoring the private sector’s confidence in state policies. This initiative marks a crucial step toward enhancing the transparency, predictability, and efficiency of China’s economic system, which is likely to significantly increase its attractiveness for both foreign and domestic investments.
An additional boost to economic development comes from the strategic focus on domestic consumption, which entails actively stimulating demand by expanding public access to financing, improving housing conditions, and implementing comprehensive social support measures. At the same time, the Chinese leadership is significantly increasing investments in advanced technologies such as artificial intelligence, quantum computing, and green energy. This will enable China to strengthen its technological sovereignty and secure a leading position in the global economy of the future.
The set of decisions adopted at the Two Sessions creates conditions for China to continue playing the role of a driver of global economic development and a source of technological innovation.
Among the key decisions of the Two Sessions is the prioritization of sustainable economic development, reflected in the realistic GDP growth target of around 5%. A crucial factor in achieving this goal is reliance on the domestic market, support for private entrepreneurship, and the implementation of innovations, as confirmed by the adoption of China’s first fundamental law on the private economy. Additionally, significant emphasis has been placed on technological leadership, including the active development of artificial intelligence, quantum computing, and green technologies.
Furthermore, Chinese authorities have declared environmental sustainability a priority, planning to reduce GDP energy intensity by approximately 3% and significantly expand support for enterprises adopting environmentally friendly technologies. The social policy decisions within the Two Sessions are also notable for their depth and comprehensiveness—particular attention has been given to modernizing the healthcare system in response to an aging population and providing large-scale support for families with children to stabilize the demographic situation.
Overall, the announced measures highlight the Chinese leadership’s systematic and long-term approach to ensuring stability and growth while demonstrating China’s ability to effectively adapt to new domestic and external conditions.
The economic decisions announced at the 2025 Two Sessions underscore the strategic caution and prudence of the Chinese leadership amid increasing global economic uncertainty. Setting a GDP growth target of around 5% is not merely a compromise between ambition and economic reality, but a deliberate bet on high-quality development that avoids the risks of overheating or a sharp slowdown in the national economy. China is demonstrating its readiness to transition from an extensive growth model to development based on high technology, innovation, and the sustainable use of natural resources.
A particular emphasis has been placed on stimulating domestic consumption as the primary driver of economic growth, aimed at compensating for declining external demand and stabilizing the domestic market. To achieve these goals, a comprehensive package of state support measures has been introduced, including not only tax incentives and subsidies for purchasing high-cost goods but also a significant expansion of public access to financial resources, including consumer loans and preferential mortgage programs. These steps are designed to enhance citizens’ purchasing power, revive consumer demand, and create additional incentives for the development of small and medium-sized businesses.
One of the most crucial decisions was the adoption of China’s first-ever fundamental law on the private economy, aimed at restoring and strengthening entrepreneurs’ confidence in state policy. Experts view this decision as a decisive step toward creating a transparent and predictable business environment, improving the investment climate, fostering domestic entrepreneurship, and attracting long-term foreign investments. In the long run, this will enable the Chinese economy to achieve high-quality and sustainable development while maintaining stability and competitiveness in the face of global challenges.
Technological development and innovation were identified during the 2025 Two Sessions as one of the most strategically significant tasks, on which China’s future position in the global economic arena depends. The authorities have made it clear that achieving technological sovereignty and securing leadership in high-potential, science-intensive fields such as artificial intelligence, quantum computing, and green energy are top priorities.
First, China intends to significantly accelerate the development and implementation of artificial intelligence solutions, which is seen as the foundation for a technological breakthrough and a key factor in enhancing the country’s economic competitiveness in the coming decades. To achieve this, several world-class national technology centers will be established to conduct cutting-edge research and integrate AI advancements into industry, transportation, and healthcare.
Second, particular emphasis will be placed on strengthening China’s position in the field of quantum computing. This sector is expected to secure the country’s leadership in critical technological domains such as information security, ultra-fast data processing, and next-generation communication technologies. To achieve these goals, China plans a substantial increase in both public and private funding for scientific research, as well as the training of highly qualified specialists.
Third, green energy will become a central element of China’s innovation agenda, supported by large-scale investments and dedicated government programs for enterprises developing and implementing environmentally friendly technologies. Special attention will be given to the formation of innovation clusters focused on renewable energy sources, smart grids, and new eco-friendly solutions for industry and urban infrastructure.
Thus, the technological agenda presented at the 2025 Two Sessions demonstrates China’s ambitious intentions to become a leader in breakthrough innovations. The consistent implementation of these measures will allow the country not only to strengthen its position in the global high-tech market but also to ensure sustainable, high-quality economic development amid global competition.
Environmental Policy: A Strategic Shift Towards Sustainability and Leadership
China’s environmental policy, as presented at the 2025 Two Sessions, marks a fundamentally new stage in the country’s development, aimed at deep structural transformations in the economy. Beijing has clearly expressed its determination to reduce the energy intensity of the national GDP by at least 3%, viewing this as a crucial step toward sustainable economic growth and fulfilling global climate commitments.
Achieving this goal will require large-scale industrial modernization, an accelerated transition to renewable energy sources, and the implementation of advanced energy-saving technologies in key industries, including metallurgy, energy, and infrastructure construction.
One of the most ambitious decisions is the significant expansion of “green development” zones. This entails the creation of new industrial and technological clusters that adhere to the strictest environmental standards, where enterprises receive government subsidies and tax incentives for implementing eco-friendly solutions.
China aims to make “green technologies” not just a component of its environmental policy but also a key pillar of national economic competitiveness. Special priority will be given to alternative energy industries, electric transportation, efficient waste recycling systems, and innovative methods for air and water purification.
This large-scale environmental agenda reaffirms China’s strategic commitment to shaping a new economic model based on a balance between economic growth and environmental responsibility. The successful implementation of these initiatives will not only strengthen China’s leadership position in the global green economy but also significantly improve the quality of life for its citizens, minimize the risks of environmental crises, and contribute to solving global climate challenges. This, in turn, will enhance China’s international authority and influence in the field of sustainable development.
At the same time, China has announced a large-scale and well-thought-out reform of its national healthcare system aimed at significantly improving its accessibility, quality, and resilience in the face of rapidly growing demographic challenges, particularly population aging. A key element of this reform is the substantial strengthening of social protection for elderly citizens through a significant increase in government spending on healthcare and social services, ensuring long-term improvements in quality of life and societal stability.
To achieve this ambitious goal, substantial investments will be directed toward upgrading medical infrastructure, introducing new healthcare service standards, expanding access to healthcare in remote and rural areas, and developing a nationwide program to train qualified specialists for elderly care.
These social reforms not only highlight the Chinese leadership’s determination to respond swiftly to demographic challenges but also demonstrate a comprehensive approach to managing the risks associated with an aging population—an approach that could serve as a model for other countries facing similar issues. The implementation of these measures will significantly strengthen social stability and ensure the long-term resilience of China’s development model.
A crucial component of China’s strategic vision, as outlined at the 2025 Two Sessions, is the continuation and expansion of its high-level openness policy. This is particularly relevant in the current context of global instability and geopolitical tensions. Beijing reaffirmed its commitment to deeper integration into the global economy and the development of mutually beneficial partnerships with other countries, guaranteeing foreign investors clear, transparent, and attractive conditions for operating in the Chinese market.
This approach allows China to position itself as a responsible global player—not only maintaining its own economic stability but also contributing to the recovery and growth of the global economy. By doing so, China fosters trust and confidence among its international partners, further solidifying its role in shaping the future of the global economic landscape.
The Role of the Belt and Road Initiative in the Current Global Landscape
In the context of increasing global economic instability, the Belt and Road Initiative (BRI) is taking on an especially important role. China emphasizes that this initiative is not only an economic project but also a key instrument for stabilizing and strengthening regional and global cooperation. Amid the slowdown of the global economy and rising geopolitical risks, the Belt and Road Initiative is becoming even more relevant, allowing partner countries to better cope with challenges and take full advantage of an open global economy.
Moreover, China has expressed its readiness to enhance dialogue and cooperation with developing countries by providing them with access to investments, technologies, and infrastructure solutions. In this context, special attention is being given to the countries of Central Asia, Africa, and Latin America. The Belt and Road Initiative is seen not just as a means of expanding trade and investment but also as a platform for addressing global challenges such as poverty, social inequality, and environmental sustainability.
In the long run, this initiative will help strengthen China’s position on the international stage, reaffirming its reputation as a responsible global player committed to mutual prosperity and stability worldwide.
Looking at the adopted decisions from a long-term perspective, it is clear that China has clearly outlined its strategic priorities for the coming years, demonstrating flexibility and adaptability to current global challenges. The measures introduced at the Two Sessions establish a solid foundation for stable domestic growth, the accelerated development of high-tech industries, and an improved standard of living for citizens. At the same time, the emphasis on international openness and the strengthening of the Belt and Road Initiative suggest that China seeks to play a key role in stabilizing and promoting global economic growth. This approach is likely to have a significant impact on international relations and global trade in the coming years.
China Studies Center
