China’s ‘Two Sessions’ Wraps Up, Reinforcing Political and Economic Priorities

China concluded its annual political gathering, known as the “Two Sessions,” on Tuesday, solidifying its strategic goals across governance, economy, military, and foreign policy. The tightly orchestrated meetings saw delegates approve seven proposals, including a revision requiring national and local congress representatives to uphold “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era.”

A notable absence at the closing ceremony was Zhao Leji, China’s No. 3 official and chairman of the National People’s Congress (NPC) Standing Committee, due to a reported “respiratory infection”—a rare occurrence in recent years. Despite this, the event largely proceeded as expected, though it provided key insights into Beijing’s positioning on economic growth, technological advancements, military expansion, and U.S.-China tensions.

One of the most discussed topics was the rise of domestic artificial intelligence. AI startup DeepSeek captured significant attention after being praised for its open-source model. While Premier Li Qiang’s government work report emphasized China’s “new achievements” in AI without directly naming DeepSeek, investor enthusiasm soared, reflected in Alibaba’s stock surge following the launch of its own AI model. Tech leaders like Xiaomi CEO Lei Jun and XPeng CEO He Xiaopeng were prominently featured, underscoring Beijing’s renewed focus on self-reliance in advanced industries.

On the economic front, the government set a GDP growth target of around 5% for 2025, maintaining the same goal as last year. Various stimulus measures were announced, including consumer subsidies and increased state bank funding, but analysts viewed them as modest. Despite officials’ optimistic outlook, concerns over deflation and the ongoing trade conflict with the U.S. cast uncertainty over China’s economic trajectory.

Military expansion remained a priority, with defense spending set to rise by 7.2%, outpacing economic growth. Premier Li’s report emphasized combat readiness, while President Xi Jinping expressed dissatisfaction with current military management, calling for better oversight and efficiency. Meanwhile, rhetoric on Taiwan intensified, with a military spokesperson warning that “separatists” would face increasing pressure.

Food security was another key focus, particularly as China retaliated against U.S. tariffs with duties on American agricultural imports. Despite record grain production, Agriculture Minister Han Jun stressed the need for self-reliance, cautioning that China still depends on imports to maintain supply stability.

In foreign affairs, Foreign Minister Wang Yi reaffirmed China’s alignment with Russia and its leadership in the Global South, while extending diplomatic overtures to Europe and India. His remarks on U.S.-China relations were firm, dismissing Washington’s stance on trade and fentanyl as “groundless” while emphasizing the need for coexistence between the two global powers.

As China tightens its control over domestic affairs and prepares for external challenges, the “Two Sessions” reinforced Beijing’s priorities: strengthening self-sufficiency, asserting its military posture, and carefully navigating its relationship with Washington amid rising geopolitical tensions.