China’s annual Two Sessions reinforced a clear message: steady growth, controlled stimulus, and a full-state effort to fortify national security and self-reliance.
The government set a 5% GDP target, pledged stronger support for private and foreign firms, and prioritized AI, semiconductors, and green tech. But beyond the rhetoric, challenges remain. Can targeted interventions—including a higher fiscal deficit, looser monetary policy, and consumption stimulus—stabilize growth, or will debt, local government pressures, and a fragile property sector hold it back?
Meanwhile, self-reliance and security concerns continue to drive economic strategy, from supply chains to financial markets, as Beijing seeks to guard against external pressures while keeping policy options open in an unpredictable global landscape.
Execution will be key. The test now is whether these policies restore consumer and investor confidence and translate into long-term economic resilience.
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