China’s political calendar is again focusing on one of the most anticipated events of the year, the Two Sessions. To be held from March 5, these annual meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) are a chance to see where the country is heading strategically. With Beijing encountering more and more difficult international relations, this year’s sessions will focus on both domestic and international issues, especially against the background of the protectionist trade policy and erratic diplomacy of U.S. President Donald Trump. What China does at the Two Sessions will not only define its own economic growth but also influence the world economy as a whole.

The main event of the Two Sessions will be the Government Work Report delivered by Premier Li Qiang. This report will present the main objectives, economic goals, and policy objectives for the next year. Since 2025 marks the end of the 14th Five-Year Plan in China, much attention will be paid to how effective Beijing has been in achieving its objectives in the previous plan and what adjustments it will make in drawing up its next development plan. The discussions and reports that will be made available during the sessions will help to reveal the general vision of the leadership towards the 15th Five-Year Plan, which will define the future of the country’s economy and technology for several years.

China’s economic performance remains central to these deliberations. The country is still expected to account for 21 percent of global growth in the next five years. As the world’s biggest trading partner and an innovative power, its policies are significant for the whole world. But the new economic confrontationalism from Washington—the restriction on Chinese technology  firms, the increase of tariffs on electric vehicles, and the pressure on allies to reduce economic links with Beijing—has left China with no choice but to readjust its strategy to maintain its momentum despite these headwinds.

Among the subjects to be discussed, China’s strategy of technological self-reliance will be one of the most important. At least twice in the past year, President Xi Jinping has stressed that the country needs to become a technological powerhouse to ensure its long-term economic success. The United States and its allies have restricted semiconductor exports and advanced technology transfer, so Beijing has increased its efforts to develop its own capabilities. Policy measures related to the improvement of the country’s AI, chip manufacturing, and other high-tech industries are likely to be revealed during the Two  Sessions.

The government is also expected to introduce new incentives and regulatory frameworks to support private-sector players in these areas, reinforcing their role in driving China’s technological transformation. In recent months, Xi has personally engaged with major business leaders, including Alibaba’s Jack Ma, Huawei’s Ren Zhengfei, and Xiaomi’s Lei Jun, to assure them of the government’s commitment to fostering an environment that enables private enterprises to thrive. These efforts are part of a larger effort to revitalize confidence in China’s economic model as foreign investment is coming under more scrutiny due to geopolitical tensions. New policy measures that will improve market access, decrease bureaucratic delays, and ensure equal treatment are likely to be revealed during the Two Sessions in an attempt to counter the  negative impact of Trump’s increasing trade restrictions.

Beyond domestic economic policies, the leadership will also address mounting fiscal challenges.  The real estate sector, which used to be an engine of growth, has been in a slump for the past few years. Beijing has already been making serious efforts to stabilize the market through the implementation of various stimulus measures, but more policies may be announced to boost this sector. Similarly, the issue of local government debt will be on the main agenda. Since many provincial and municipal governments have financial challenges, the central government will have to find new ways of addressing the debt levels as it continues with the infrastructure spending.

Another important area of focus will be the expansion of the domestic market. Having assessed the world’s slow growth and trade risks, Chinese leaders understand the need to accelerate internal demand growth as a shield against the external shocks. The Central Economic Work Conference (CEWC) in December underscored this priority, calling for aggressive measures to encourage consumer spending, which could include tax cuts, subsidies, or other measures that increase income and consumer confidence. The success of these measures will be closely watched, as China seeks to move from an export-led growth model to one based on domestic consumption.

In the political sphere, China is prepared for the continued deterioration of relations with the United States. The return of Trump to the White House has already instigated a new round in the trade war, with his administration imposing new tariffs and compelling its allies to  distance themselves from Beijing and its financial projects, including the Belt and Road Initiative. The recent action of Panama severing ties with the BRI at the behest of the United States reveals this  larger geopolitical contest. China will now try to find new trade partners and diversify its economic relations to reduce the risks that come with Washington’s hostile posture.

As the world’s second-largest economy, China’s policy choices carry global significance. Many developing nations are looking toward Beijing for leadership in the fight against Washington’s protectionism and the promotion of a new, fairer world economic order. Against this background, the Two Sessions are not only a domestic policy-setting event but also a message to the international community that China is ready to lead in ensuring economic stability, innovation, and cooperation. The challenge for China lies in sustaining robust growth while managing an increasingly hostile global environment. The decisions made during the Two Sessions will determine the direction of the country for the next few years; whether it will keep rising as one of the world’s economic powers or whether it will experience some setbacks due to pressures from the outside environment.

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