China's 2025 "Two Sessions": Key Economic Policy, Legislative Billions, and Global Impacts. With the early March 2025 timeframe fast approaching

China will hold its end-of-year "Two Sessions" (两会, Liǎnghuì), a single event in China's political calendar. The period is the joint sessions of the National People's Congress (NPC) and Chinese People's Political Consultative Conference (CPPCC), two bodies crucial in deciding China's policy direction over the next twelve months.

Understanding the "Two Sessions"

"Two Sessions" is a term used for the concurrent sessions of:

1. National People's Congress (NPC): As China's highest state organ and its only legislative chamber, the NPC possesses great power, such as power to revise the constitution, enact laws, and appoint major state officials. The 14th NPC, which is now in session, consists of almost 3,000 deputies from different places and fields from all over China.
2. Chinese People's Political Consultative Conference (CPPCC): As a political consultative body, the CPPCC consists of over 2,000 representatives from multiple political parties and groups. Despite it not having the legislative power, the CPPCC provides constructive views and advice on significant political and social issues and contributes to the consultative democracy mode initiated by the Communist Party of China (CPC).

Both sessions operate on a five-year cycle, convening once a year to share and determine national priorities. The CPPCC session for 2025 is set to open on March 4, and then the NPC session opens on March 5.

Main Agendas of the 2025 "Two Sessions"

The 2025 "Two Sessions" will address some significant topics:

1. Economic Targets and Policies

• GDP Growth Target: Possibly the most highly awaited announcement is the GDP growth target annually. For 2025, the target is expected to be a relatively high target of around 5%, a reflection of a guarded but hopeful projection in the face of economic uncertainties globally. citeturn0news35
• Fiscal Policies: In an effort to spur economic growth, the budget deficit will increase to 4% of GDP from last year's 3%. The government also plans to sell 3 trillion yuan worth of special treasury bonds, significantly higher than last year, with the proceeds being used in consumer subsidies, renewal of business equipment, and strategic investment schemes. citeturn0news35
• Employment and Inflation: Employment remains at the top, with a focus of creating about 12 million new city jobs and cutting down the target of unemployment by around 5%. China further wants to cut down its target for inflation by around 2% because last year, consumer prices rose just slightly. citeturn0news35

1. Legislative Reforms

• Law Amendments: Lawmakers will deliberate on an initial draft amendment to the Law on Deputies to the National People's Congress and Local People's Congresses at All Levels, its fourth such amendment since its enactment in 1992.
• Legislative Calendar Plan: Annual Legislative Plan is a work plan that will be presented by the Standing Committee of the NPC. The plan of legislation for the year could comprise the passage of or amendment of significant laws on civil affairs, supervision, foreign investment, among others.

1. **Judicial Oversight

• Work Reports: The Supreme People's Court and the Supreme People's Procuratorate leaders will submit their respective work reports, providing an overview of China's judicial and procuratorial organs' performance and priorities.

1. Foreign Policy

• Press Conferences: Top government officials, such as the Foreign Minister, will hold press conferences on the sidelines of the "Two Sessions," and introduce China's foreign affairs stances and policies. These meetings are closely watched for hints at China's diplomatic strategies and responses to global affairs.

Recent Developments and External Views

Some of the recent developments are expected to influence deliberations at the 2025 "Two Sessions":

• Military Representation: The NPC military delegation to the NPC has been in decline following a series of corruption cleanses during President Xi Jinping's reign, with the delegation now standing at 267 from its 281 members in 2023. This is an expression of Xi's ongoing concern to keep the military in check in the wider drives to maintain discipline in the Communist Party. citeturn0news34
• Economic Outlook: China's economy grew 5.0% in 2024, as predicted by the government and higher than analysts' expectations. Industrial output and retail sales were the prime movers, both outpacing expectations. Weaker domestic demand and potential U.S. trade tariffs, though, are concerns for 2025. citeturn0news35
• Technological Competition: As China's leaders formulate policy for 2025, competition with the US has become different – technology and manufacturing, rather than GDP, are now the main battlefield.

Implications for Global Stakeholders

The "Two Sessions" decisions have significant implications far beyond Chinese shores:

• World Markets: Individuals all over the world closely monitor China's economic policies, because its growth targets, fiscal policies, and industrial policies influence world commodity prices, trade patterns, and investment plans.
• Global Politics: The orientations of China's foreign policy, as reflected in the sessions, provide an insight into its stand on global issues, including trade disputes, global warming, and geostrategic tensions.
• Technological Advancements: Emphasis on technological advancement and autonomy is indicative of China's need to restrict dependence on foreign technology, with implications for international tech industries and supply chains.

Conclusion

The 2025 "Two Sessions" are a barometer of China's policy agenda and the course it will follow in the coming year. The decisions it makes in these few weeks will not only decide what occurs at home but also ripple through the international economic and political landscape. So, players all over the world wait with bated breath to find out what emerges from these momentous sessions.