This week, China concluded one of its most important annual political gatherings, the Two Sessions. The government set an ambitious growth target, laying out plans to transform China’s economy towards an innovation and technology-driven growth model in the face of rising internal and external challenges.
Our latest report looks at this year’s Two Sessions and what it means for businesses engaging with China.
Key takeaways from the meetings include:
- Formalization of Party primacy: The distinction between Party and state faded further with legal amendments increasing the Party’s formal control over the State Council, focusing its role as Party policy executor.
- Significant headwinds: Premier Li Qiang delivered a frank assessment of the challenges facing the country, noting that long-standing issues had become more pronounced as difficult external dynamics continued.
- Cheerleading growth: The meetings set an ambitious yet challenging 5% GDP growth target for the year ahead, while only outlining restricted economic support measures at this time.
- Securing the nation: National security priorities laid out at the 20th Party Congress remain paramount, with this year’s Two Sessions reaffirming an all-of-state strategy to boosting self-reliance and driving innovation.
- New quality productive forces: To drive innovation, a new phrase coined by Xi Jinping—new quality productive forces—was front and center at the Two Sessions. The policy slogan aims to inspire focus on development of emerging industries while not forgetting the manufacturing sector.
- Encouraging foreign investment: Negative impacts on foreign investment were acknowledged as renewed commitments to encourage foreign investment were laid out in line with long-standing themes.
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