China’s Two Sessions and the Path to a Stronger Future

by Muhammad Asif NOOR

China’s Two Sessions is unfolding at a critical moment, shaping the direction of its economy, governance, and international posture. The meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) offer an insight into the country’s evolving policies. At a time when the world is navigating economic uncertainty, strategic realignments, and technological transformation, China’s focus is clear. It is advancing toward an economic structure that is driven by technological self-reliance, industrial modernization, and increased domestic consumption, while ensuring political stability and national security. The gathering of thousands of delegates in Beijing is not just about legislative approvals; it is about reinforcing China’s policy framework to adapt to shifting realities.

The economic agenda remains a central theme. Unlike previous years, when growth was driven by large-scale infrastructure projects and property expansion, the government is now pushing for a new economic model. The GDP target of around 5 percent indicates that stability is the priority, but it is also a recognition that the country is undergoing a fundamental transition. The Chinese leadership is emphasizing “new quality productive forces,” aiming to shift from traditional engines of growth to high-tech industries. This includes investments in AI, quantum technology, and automation, ensuring that economic momentum is not dependent on construction booms or credit expansion. The issuance of ultra-long-term treasury bonds and an increase in the fiscal deficit signal a willingness to deploy financial tools to maintain stability.

Regulatory tightening on the private sector  had caused uncertainty, but the introduction of the Private Economy Promotion Law is an attempt to provide reassurance. The emphasis on supporting private enterprises, addressing delayed payments, and offering a more stable business environment indicates a course correction. The leadership is aware that economic growth cannot be sustained without a thriving private sector, and these measures are intended to create conditions for long-term investment and entrepreneurship.

The ongoing Two Sessions also indicate a shift in financial strategies, with a focus on strengthening capital markets, encouraging patient capital, and expanding the role of local government special bonds. Unlike in previous years, when financial policies were primarily directed at controlling debt and mitigating financial risks, the current approach seeks to channel financial resources into strategic sectors. The increased issuance of ultra-long-term treasury bonds and the expansion of funding for emerging industries reflect a broader effort to create a financial ecosystem that supports technological innovation and sustainable economic development. China is also taking steps to deepen its financial reforms by improving credit access for private enterprises and small businesses, recognizing that inclusive financial policies will be key to long-term economic resilience.

Technology is taking center stage in China’s policy outlook. The recent success of DeepSeek has bolstered confidence in the country’s AI capabilities, reinforcing the belief that technological independence is achievable despite external restrictions. AI-driven industries are expected to play a bigger role, with applications in manufacturing, finance, and governance. The AI+ initiative, which encourages integration of artificial intelligence across different sectors, is a reflection of this push. 

While much attention has been given to China’s economic and technological ambitions in the two sessions, the discussions in Beijing also show aim of the country’s commitment to playing a more proactive role in shaping global institutions and trade mechanisms. The push for AI regulation, increased participation in WTO negotiations, and leadership in green finance initiatives signal that Beijing is positioning itself as a key architect of future global economic and technological frameworks. The world is witnessing a China that is not only strengthening its domestic foundations but also extending its influence in shaping the rules of global engagement in a way that fosters stability and cooperation.

The international landscape is shaping many of the discussions. The return of the Trump administration and its approach to trade have added a layer of complexity to China’s external economic strategy. The imposition of new tariffs on Chinese goods is not unexpected, and the diversification of supply chains, domestic innovation, and strengthened trade partnerships give Beijing more options. China’s engagement with the Global South, including infrastructure investments and trade agreements, has provided alternative avenues for economic cooperation.

Social policies are also under review. The declining birth rate is a structural issue that China is addressing with caution. The expansion of social security, improvements in healthcare, and support for families are being framed as part of a broader effort to enhance quality of life.

For partners like Pakistan, the developments in the Two Sessions are important. The China-Pakistan Economic Corridor remains a central pillar of economic cooperation, but its next phase must align with China’s priorities. The shift towards high-tech industries means that future collaboration should focus on digital trade, AI integration, and industrial modernization. The opportunities are significant, but they require strategic alignment. Pakistan needs to engage with China on emerging economic trends, ensuring that its own policies complement Beijing’s evolving priorities.