Last week, China wrapped up one of its most important annual political gatherings, the Two Sessions. An air of realism permeated this year’s meetings—compared to the guarded optimism exhibited in 2021, the Chinese leadership painted a more somber picture of the myriad headwinds facing the country.
For decades, Chinese leaders have sought to balance the perpetual and sometimes conflicting objectives of economic growth, reform, and stability. This year’s meetings made clear that stability is paramount for 2022.
Premier Li Keqiang noted that China is under multiple pressures exerted by shrinking demand, disrupted and vulnerable supply chains, and weakening expectations. Although praise was given to the accomplishments of the past year, the government identified numerous challenges ahead, from maintaining economic momentum to building technological self-sufficiency and improving social equity.
Our latest report on China’s political environment looks at this year’s Two Sessions and what it means for businesses engaging with China.