Asia Daily Two Sessions Edition: March 7, 2025
Welcome to a special edition of Asia Daily focused on China’s annual Two Sessions (lianghui) meetings! For the next week, The Asia Cable will be providing daily news and commentary updates surrounding the National People’s Congress and the Chinese People's Political Consultative Conference as China sets its legislative agenda for the next year. Today’s schedule can be found here.
History and reality affirm Taiwan is inalienable part of China: FM. Chinese Foreign Minister Wang Yi reaffirmed that Taiwan belongs to China, citing the Cairo Declaration, Potsdam Proclamation, and UN Resolution 2758 as legal foundations. He warned that supporting "Taiwan independence" interferes in China’s internal affairs and destabilizes the Taiwan Strait. Wang declared that reunification is inevitable and attempts to use Taiwan to contain China are futile. Xinhua, March 7
China’s foreign minister criticizes U.S. tariffs and accuses the country of ‘meeting good with evil.’ Wang Yi condemned Washington’s latest tariffs, accusing the U.S. of escalating tensions while ignoring China’s cooperation on fentanyl controls. He warned that no country could suppress China and expect stable relations. Beijing has already imposed 15% duties on U.S. agricultural imports and tightened restrictions on American firms. Simina Mistreanu, AP News, March 7
Several lawmakers, political advisors propose stimulus for childbirth at China’s ‘two sessions.’ Chinese lawmakers and political advisors have proposed expanding maternity leave, offering subsidies shared by employers and the government, and improving fertility protection. Suggestions include increasing maternity leave to 126 days, implementing fertility assessments before marriage, and enhancing childcare services. Officials highlighted existing policies, with 23 provinces already providing birth subsidies and nearly 20 covering assisted reproductive treatments under medical insurance. Global Times, March 7
Xi Jinping calls for education overhaul to ramp up China’s tech ambitions. President Xi Jinping urged reforms in China’s education system to better support scientific innovation and high-tech development. Speaking at the Chinese People’s Political Consultative Conference, he emphasized the need for stronger links between universities, businesses, and local governments to produce skilled talent. Xi also called for expanding digital education and vocational training to address demographic shifts and workforce demands. Liu Zhen, South China Morning Post, March 6
‘Major powers should not bully the weak,’ China foreign minister says. Chinese Foreign Minister Wang Yi warned against global power imbalances, stating that large nations should not exploit smaller ones. He vowed China would “resolutely counter” U.S. tariff hikes and fentanyl-related pressure while positioning Beijing as a stabilizing force amid geopolitical uncertainty. Wang also reaffirmed China’s neutrality on Ukraine and called for stronger Global South representation in international governance. Ryan Woo, Ethan Wang, and Laurie Chen, Reuters, March 7
China determined to ‘resolutely’ keep yuan stable amid U.S. tariff pressure. People’s Bank of China Governor Pan Gongsheng pledged to prevent excessive exchange rate fluctuations, ensuring the yuan remains stable despite U.S. tariff hikes. He dismissed accusations of currency manipulation and cited external economic pressures as key factors affecting the exchange rate. Officials reaffirmed China’s commitment to market-driven policies while warning of potential countermeasures against Washington’s trade actions. Sylvia Ma, South China Morning Post, March 6
China to host SCO summit in Tianjin this autumn: FM. Chinese Foreign Minister Wang Yi announced that China will host the Shanghai Cooperation Organization (SCO) summit in Tianjin this autumn. As the rotating president, China is organizing over 100 events under the theme “Upholding the Shanghai Spirit: SCO on the Move.” Wang emphasized that the summit will strengthen regional cooperation and further the organization's long-term development. Xinhua, March 7
Achieving ‘dragon and elephant dance’ as mutually supportive partners only correct choice for China, India: FM. Chinese Foreign Minister Wang Yi emphasized the need for stronger China-India ties, highlighting last year’s Xi-Modi meeting as a step toward stability. He called for cooperation over competition, stressing that border issues should not define bilateral relations. Wang also urged both nations to oppose hegemonism and lead the Global South in shaping international norms. Global Times, March 7
8 takeaways from China’s top diplomat Wang Yi at the ‘two sessions.’ Foreign Minister Wang Yi positioned China as a stabilizing global force while vowing to counter U.S. containment efforts. He reaffirmed strong ties with Russia, defended China’s stance on Taiwan, and called for deeper Global South cooperation. Wang also warned the Philippines over South China Sea disputes and criticized Trump’s Gaza plan. On Europe, he urged dialogue amid trade tensions. Dewey Sim, South China Morning Post, March 7
‘Two sessions’ 2025: how can China get its private sector back on track? Despite Beijing’s push to revitalize private investment, obstacles remain, as seen in China’s first privately funded high-speed railway, which struggles under state control. Premier Li Qiang pledged policy support, but regulatory barriers and monopolistic state firms deter investors. Analysts urge Beijing to open key industries and strengthen legal protections to restore business confidence. Frank Chen, South China Morning Post, March 7
China’s Two Sessions 2025: key takeaways from the Government Work Report. Premier Li Qiang delivered the 2025 Government Work Report, maintaining a 5% GDP growth target and outlining key economic policies. Priorities include boosting domestic consumption, stabilizing real estate, and attracting foreign investment. Fiscal measures will raise the deficit to 4% of GDP, with increased infrastructure spending. China also aims to advance green development and technological innovation while managing financial risks. Qian Zhou, Arendse Huld, and Giulia Interesse, China Briefing, March 5
Economic-themed press conference during Two Sessions: full transcript & highlights. At the Third Session of the 14th National People's Congress, top Chinese officials outlined economic policies, including a National Venture Capital Guidance Fund to support tech innovation, expansion of trade-in subsidies, and financial reforms to stabilize markets. Measures to counter U.S. tariffs were also discussed. The People’s Bank of China pledged to adjust monetary policy to support growth while controlling risks. Fred Gao, Inside China, March 6