Asia Daily Two Sessions Edition: March 5, 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. Tomorrow’s schedule can be found here.
China targets economic growth of around 5% in 2025. China has set an economic growth target of approximately 5% for 2025, according to a government work report presented to the National People’s Congress. The plan also aims to maintain an urban unemployment rate of around 5.5%, create over 12 million new jobs, and keep inflation at about 2%. Officials emphasized boosting domestic demand, advancing AI-driven manufacturing, and issuing 300 billion yuan in special bonds to support consumer spending. Xinhua, March 5
China maintains defense spending increase at 7.2% amid roiling geopolitical tensions. China has announced a 7.2% increase in defense spending for 2025, maintaining last year’s growth rate as tensions persist over Taiwan and regional military activities. The government’s annual budget report highlights continued military modernization, with investments in new missiles, ships, and surveillance technology. It also stresses combat readiness and efforts to improve "political conduct" within the People’s Liberation Army following recent corruption scandals. Laurie Chen, Joe Cash and Greg Torode, Reuters, March 5
Hong Kong can handle pressure, Beijing official says, hailing stock market rally. Xia Baolong, Beijing’s top official for Hong Kong affairs, praised the city’s stock market rebound and expressed confidence in its ability to withstand external economic pressures. Speaking at a closed-door meeting with National People’s Congress deputies, Xia emphasized the importance of supporting local governance under the "one country, two systems" framework. The Hang Seng Index has surged 14% this year, boosting market confidence. Willa Wu, South China Morning Post, March 5
China ramps up stimulus to guard economy from changes 'unseen in a century'. China has announced increased fiscal stimulus to support consumption and shield its economy from global trade disruptions, particularly U.S. tariffs. Premier Li Qiang, speaking at the National People's Congress, pledged to boost household spending and raise government debt to fund growth. Measures include $179 billion in special treasury bonds and expanded consumer subsidies. China maintains a 5% growth target despite economic headwinds. Antoni Slodkowski, Laurie Chen, Jing Xu and Eduardo Baptista, Reuters, March 5
Hong Kong’s global gateway role ‘irreplaceable,’ nation’s top legislature says. China’s top legislative body reaffirmed Hong Kong’s critical role as the country’s global gateway, pledging further support for its integration into the Greater Bay Area. National People’s Congress spokesman Lou Qinjian highlighted Hong Kong’s importance in China’s economic strategy, citing its robust infrastructure and financial services. Officials also emphasized Beijing’s commitment to addressing Hong Kong’s housing and land supply challenges. Willa Wu and Vivian Au, South China Morning Post, March 4
Previewing China’s annual ‘Two Sessions.’ Experts from the Center for Strategic and International Studies analyzed China’s annual legislative meetings, highlighting economic growth challenges, AI advancements, and foreign policy strategies. Discussions emphasized China’s efforts to boost consumption, expand its technological capabilities, and navigate U.S. trade tensions. Officials are expected to focus on stabilizing the economy while reinforcing national security measures. Center for Strategic and International Studies, March 3
‘Two sessions’ 2025: can China boost investment narrative as AI sweetens economic outlook? As China’s annual legislative meetings convene, policymakers aim to restore investor confidence amid economic uncertainty. Advances in AI, including the development of DeepSeek-R1, have fueled optimism, with financial institutions predicting a market rebound. However, concerns over geopolitical tensions, foreign investment restrictions, and economic stagnation persist. Analysts remain cautious about long-term growth prospects despite short-term enthusiasm. Luna Sun, South China Morning Post, March 4
Breakdown of Wang Huning's CPPCC speech: China prioritizes ideological unity and economic reform. Wang Huning opened the Chinese People’s Political Consultative Conference by reaffirming the central role of Xi Jinping’s leadership and the Communist Party’s authority over policymaking. He outlined four main themes for the CPPCC’s work: ideological unity through Xi Jinping Thought, strengthening national confidence, advancing economic reforms, and enhancing the role of special committees. Wang emphasized the need for high-quality development, deeper political education, and expanded diplomatic outreach while aligning policies with the 14th Five-Year Plan’s final year. Manoj Kewalramani, Tracking People's Daily, March 4
Breakdown of Li’s government work report and China’s budget report. Premier Li Qiang’s annual government work report outlined China’s 2024 economic performance and policy priorities for 2025. Key achievements included 5% GDP growth, record-high foreign trade, and expanded high-tech manufacturing. For 2025, Li set a 5% GDP growth target, pledged fiscal stimulus, and emphasized innovation in AI, biotech, and 6G. The budget report detailed increased defense spending, local debt restructuring, and consumer stimulus programs. Li reaffirmed Xi Jinping’s leadership and China’s commitment to economic reform and national security. Manoj Kewalramani, Tracking People's Daily, March 5