China's National People's Congress Concludes Amid Focus on Stability and Tech-Driven Growth

Beijing. China's largest political gathering, the National People's Congress (NPC), is concluding on Thursday. Its broad mandate includes lawmaking, constitutional amendments, and passing the state budget. It primarily serves to rubber-stamp decisions made by the top levels of the Chinese Communist Party.

Nevertheless, the meetings of the NPC and the Chinese People's Political Consultative Conference (CPPCC), also known as the Two Sessions, are closely watched as they signal the priorities for the world's second-largest economy.

Here are the main takeaways gleaned from the proceedings:

China Aims to Portray Itself as a Symbol of Stability

- Laura Bicker, China Correspondent

China's bid to become the world's leading superpower hinges largely on one thing: President Xi Jinping's ability to manage its economy.

To achieve this, Xi appears to be seeking more certainty in an extremely uncertain world, grappling with an unpredictable US presidency and the war in the Middle East.

His policies encouraging the Chinese people to spend more money are driven by the goal of stabilizing a faltering domestic economy.

His emphasis on technological supremacy is an attempt to win the future and force others to come to China's doorstep for the latest factory robots or Artificial Intelligence (AI) models.

His continued push to increase China's renewable energy production will help the country become more self-sufficient. China no longer needs as much oil and gas from countries like Iran as it once did. And of course, there is the excellent choreography of such a large political event, from the familiar tune of the band to the diligence of the delegates sitting through speeches and turning pages in unison.

The calm, highly controlled, and carefully staged politics seen in the Great Hall of the People stand in stark contrast to the aggressive posture of the White House, which has unnerved allies and shaken markets with its threats of an attack on Iran.

The Chinese Communist Party is trying to show that it is a symbol of stability, focused on improving its economy and future.

Having fought US tariffs in a trade war and eventually reached a truce, Xi may feel China is already in a stronger position. China's commercial dominance is also attracting back previously skeptical customers, including the UK and Canada.

The geopolitical landscape is shifting, and Xi may see an opportunity for China's rise while his rivals in Washington are distracted. But he also knows that much will depend on how his country handles its own economic challenges in the coming years.

China Considers Technology the Cornerstone of Its Future

- Suranjana Tiwari, Asia Business Correspondent

Beijing is betting heavily on technology and innovation to drive the next phase of China's economic growth.

The country's 15th Five-Year Plan outlines accelerating scientific breakthroughs and integrating Artificial Intelligence (AI) across the economy. As tensions with the US rise, technology is now viewed not just as an economic priority but also a strategic one.

Spending on technology research and development is set to increase by nearly 7 percent. Officials have launched an 'AI+' initiative to integrate AI into manufacturing, logistics, healthcare, and education.

China is also investing heavily in emerging fields such as semiconductors, robotics, biotechnology, quantum computing, and 6G communications and brain-computer interfaces.

For decades, China's growth was fueled by real estate and infrastructure projects. Now, policymakers are focusing on technology and industrial upgrading. Leaders have set a GDP growth target of 4.5 to 5 percent—the lowest since 1991—signaling expectations of slower expansion.

Analysts say this plan may struggle unless household spending picks up. Consumer demand in China is lower compared to other major economies, and the real estate slump has eroded both wealth and confidence.

To help with this, the government plans to expand childcare and elderly care services and implement paid leave, aiming to ease financial pressure and encourage spending.

Leaders have also signaled a willingness to take on more debt to invest in infrastructure, social welfare, and industrial projects—a departure from the caution previously adopted regarding rising debt levels.

However, there are risks involved. State-backed investment has already drawn criticism, and some industries, like electric vehicles, suffer from overcapacity. This has fueled price wars domestically and trade tensions abroad.

Experts warn that if consumers remain hesitant to spend, technology alone may not deliver the high-quality growth Beijing hopes for.

For now, Beijing appears confident that AI, emerging industries, and innovation can power the next phase of the economy. But success may ultimately depend on whether the average Chinese household feels secure enough to spend.

China Announces Plans to Boost Spending, But Details Are Sparse

- Stephen McDonell, China Correspondent

For years, economists have called for China to improve the overall health and long-term sustainability of its economy by boosting domestic consumption and reducing its heavy reliance on exporting manufactured goods.

Therefore, the pronouncements by NPC leaders promising a strong push to boost consumer demand would be welcomed. But many analysts are questioning whether the proposed measures are substantial enough to truly make a difference.

The Chinese people traditionally prefer to save for hard times rather than spend. And now, with falling home prices and high levels of youth unemployment, they are even more hesitant to spend.

So how do you get Chinese consumers to buy more?

One way is to increase incomes. NPC spokesperson Lou Qinjian said plans would be implemented to achieve this in the future. But he offered no detailed specifics.

One specific measure announced is increasing government spending on childcare. Such support could give people more disposable income, which could theoretically free them up to buy necessary household goods.

Minimum retirement benefits (pensions) for rural and non-working urban residents have been increased, but only by the equivalent of about $3 per month. This has been mocked on Chinese social media as almost nothing.

Most announced measures, such as increasing housing support for first-time married couples, refining maternity leave, or continuing trade-in programs to swap old household appliances for new ones, were given no clear details.

Officials might argue that the NPC only sets the tone, and specific details on household budget support will follow later.

But without the details, it is hard to know if any of these plans will actually lead to a significant improvement in consumption.