China's upcoming "Two
Sessions," set to convene next week in Beijing, is a critical political
event that will shape not only the country's domestic policies but also have significant
global implications. Given China’s economic scale, technological advancements,
and diplomatic reach, the decisions made during this event will influence
international markets, geopolitics, and the trajectory of global technological
innovation.
The "Two Sessions" refer to the annual meetings of the Chinese People's Political Consultative Conference (CPPCC) and the National People's Congress (NPC). The sessions are an opportunity for Chinese leadership, including the Premier, top legislator, political advisor, chief justice, and top procurator, to present work reports, review budgets, and deliberate amendments to key laws. Additionally, ministers engage with the public through press conferences, clarifying policy directions and responding to concerns. The significance of this event extends far beyond China's borders, given its economic prominence and diplomatic influence.
A major focal point of the "Two Sessions" is the growth target for 2025. In 2024, China achieved its 5% growth target despite economic pressures. With China projected to contribute approximately 30% of global economic growth in 2024, the policies set during the "Two Sessions" will be crucial for global markets. Countries that rely on Chinese trade, investment, and supply chains will be closely watching policy announcements concerning macroeconomic measures, trade incentives, and industrial policies.
China’s economic policies, particularly its shift toward a "moderately loose" monetary stance, mark a departure from its 14-year "prudent" approach. This change, signaled at the Central Economic Work Conference in December 2024, underscores China's intent to stimulate economic activity. Measures such as increasing the deficit, issuing special-purpose bonds, and boosting transfer payments to local governments will have ripple effects in global financial markets, influencing commodity prices, exchange rates, and investment flows. Given China's role as the world's largest trading nation, these policy shifts will be of particular interest to foreign governments and multinational corporations.
The "Two Sessions" also serve as a platform to observe China's approach to governance and its evolving political structure. President Xi Jinping's direct engagement in discussions with lawmakers and political advisors exemplifies China's whole-process people's democracy, a governance model that contrasts with Western democratic systems. The emphasis on grassroots interactions and strategic policymaking is crucial for understanding China’s long-term developmental trajectory.
Foreign policy remains another key aspect of the "Two Sessions." With heightened geopolitical tensions, China's stance on international conflicts, relations with major powers like the United States, Russia, and the European Union, and its outreach to the Global South will be closely scrutinized. In 2023, Foreign Minister Wang Yi addressed 21 questions during a 90-minute press conference, covering critical topics like the Ukraine conflict, the Israel-Palestine issue, and China's evolving relationships with the West. This year, the foreign minister's statements will be particularly significant, as China continues to assert itself as a key player in shaping global governance.
Another critical domain is technological innovation, particularly in artificial intelligence (AI). The emergence of DeepSeek, a Chinese AI start-up that has made waves in the global AI industry, highlights China’s ambition to lead in next-generation technologies. Major corporations such as Tencent, Baidu, and BYD are integrating AI advancements into their products, while local governments are adopting AI models to enhance public services. The "Two Sessions" are expected to further cement China’s strategic focus on AI, with policymakers likely to introduce measures to foster innovation, improve regulatory frameworks, and enhance industry-academic collaborations. Given that AI is reshaping industries worldwide, China's leadership in this sector will have far-reaching consequences for global competition and technological standards.
Beyond AI, China's economic policy deliberations will also impact global industries such as renewable energy, infrastructure, and digital economy expansion. With China playing a pivotal role in green technologies, supply chains, and digital trade, decisions made during the "Two Sessions" will influence climate policies, international investment trends, and economic partnerships across continents.
Ultimately, the "Two Sessions" are not merely a domestic event; they are a bellwether for global economic and geopolitical dynamics. As China navigates its economic transformation, foreign policy recalibrations, and technological ambitions, the world will be watching closely. Whether it is trade policies affecting global supply chains, AI advancements reshaping the digital economy, or foreign policy stances influencing diplomatic relations, the implications of this annual gathering will be felt worldwide.
Stephen Ndegwa is the
Executive Director of South-South Dialogues, a Nairobi-based communications
development think tank, and a PhD student at the United States International
University-Africa
