China’s Two Sessions, or Lianghui, is a cornerstone of the country’s political calendar, bringing together the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC). These meetings, held in Beijing every March, set the stage for China’s policy priorities and economic direction for the year ahead.
As 2025 approaches, analysts are closely watching for signals on how China plans to navigate its domestic challenges and global ambitions. Here’s a breakdown of what to expect from China’s Two Sessions in 2025.
For a thorough post-event analysis and interactive Q&A session featuring a panel of industry experts, we recommend CBBC’s upcoming “Two Sessions Debrief” on 13 March 2025. Experts including Su Yue, Principal Economist at the Economist Intelligence Unit, and Feng Chucheng, Partner, Hutong Research, will discuss the outcomes from this year’s Two Sessions and provide analysis on the political and economic implications for UK business. Sign up here.
What are the Two Sessions?
The Two Sessions are a key platform for China’s political decision-making. The NPC, China’s top legislative body, reviews and approves major policies, the national budget, and government reports, including the Premier’s work report. The CPPCC, an advisory body, gathers representatives from various sectors to provide recommendations on policy issues. Together, these meetings offer a comprehensive roadmap for China’s governance and strategic priorities.
In recent years, the Two Sessions have focused on economic recovery, technological self-reliance, environmental sustainability, and social welfare. Against a backdrop of global uncertainty and domestic pressures, the 2025 meetings are expected to address these themes while reinforcing China’s long-term goals.
Economic stability and growth
Economic policy will take centre stage at the 2025 Two Sessions. China’s leadership is likely to prioritise measures to stabilise growth and boost consumer confidence. In 2024, China set a GDP growth target of around 5% and it is likely that this will be maintained in 2025.
To achieve this growth, China is expected to implement a more proactive fiscal policy. For example, the fiscal deficit ratio may be increased to approximately 4% of GDP, surpassing the traditional 3% threshold. This move would allow for greater government spending on infrastructure projects, social welfare programs, and initiatives aimed at stimulating domestic consumption.
Other analysts have pointed out that China’s property market, which has been a significant drag on economic growth, will be a focal point. The government may introduce further measures to stabilise the sector, including support for affordable housing and reforms to address local government debt.
Technological innovation and self-reliance
Technological self-reliance will be another major theme.
The emergence of Chinese AI company DeepSeek has garnered substantial attention in recent months. DeepSeek’s recent achievements have positioned it as a formidable opponent to Western tech giants like competitor OpenAI, highlighting China’s growing prowess in the tech sector.
Nevertheless, China continues to face challenges in achieving self-sufficiency in semiconductors and other critical technologies. The 2025 Two Sessions may unveil new policies to support research and development, as well as incentives for domestic companies to reduce reliance on foreign technology.
Green transition and climate goals
China’s commitment to achieving carbon neutrality by 2060 will remain a key focus. According to The Guardian, the 2025 Two Sessions are expected to outline plans for expanding renewable energy projects, including wind, solar, and nuclear power. The government may also introduce policies to promote energy efficiency and reduce emissions in heavy industries.
Others suggest that China’s carbon trading market is set to play a larger role in achieving climate goals. The 2025 meetings may include announcements on enhancing the market’s scope and encouraging green finance initiatives to support the transition to a low-carbon economy.
Demographic challenges
China’s ageing population and declining birth rate pose challenges to the country’s long-term economic stability, and policymakers are likely to propose reforms to try to slow their effects. For example, a member of the CPPCC has recently proposed lowering the legal marriage age from 22 to 18 for men, and from 20 to 18 for women, to encourage earlier family formation.
Additionally, the government may introduce incentives for families, including financial subsidies, tax breaks and enhanced access to childcare services. These measures aim to alleviate the financial burdens associated with raising children and to promote a more family-friendly environment.
Geopolitical considerations
The Two Sessions will also provide insights into China’s approach to international relations. Amid the constantly-evolving situation of the war in Ukraine, and with tensions persisting between China and the West, particularly over trade, the 2025 meetings may highlight efforts to strengthen ties with emerging markets and regional partners.
As such, Chinese state media have reported that the Belt and Road Initiative (BRI) will remain a cornerstone of the country’s foreign policy. The 2025 Two Sessions may announce new infrastructure projects and partnerships, as well as reiterate China’s commitment to multilateralism and global governance.
Predictions for 2025
The 2025 Two Sessions will need to achieve a balancing act between addressing immediate challenges and advancing long-term goals. Key themes will include economic stability, technological innovation, environmental sustainability, and social welfare.
While the meetings are largely scripted, they offer valuable insights into the priorities of China’s leadership. As the country navigates a complex domestic and international landscape, the decisions made at the 2025 Two Sessions will have far-reaching implications for China and the world.
