 began today at the Great Hall of the People in Beijing, where Premier Li Qiang commenced delivering the annual government work report.){kind=link}
5th March 2025 – (Beijing) The National People’s Congress (NPC) began today at the Great Hall of the People in Beijing, where Premier Li Qiang commenced delivering the annual government work report. This major event, part of the “Two Sessions” meetings, comes amid heightened global uncertainties, particularly following Donald Trump’s return to the White House.
Premier Li outlined China’s economic growth targets, with a projected GDP increase of approximately 5% for the year, aligning with market expectations. Additionally, a deficit ratio of around 4% has been established, a slight increase from the previous year. The Premier’s address also covered spending on public security, which is set to rise to 242.83 billion yuan, reflecting a 7.2% increase from last year’s budget.
China’s new government debt is set to reach 11.86 trillion yuan in 2025, with plans to issue 4.4 trillion yuan (approximately 613.67 billion U.S. dollars) in local government special-purpose bonds. This figure represents an increase of 500 billion yuan compared to last year, as outlined in a government work report presented to the national legislature for review on Wednesday.
China’s central public security spending will increase to 242.83 billion yuan, reflecting a 7.2% rise from last year’s 224.56 billion yuan, which is a decrease from the previous year’s growth of 14.3%, and this budget encompasses expenditures for maintaining social order and funding law enforcement agencies.
Military expenditure is anticipated to mirror this increase, with a proposed budget of 1.784 trillion yuan, reinforcing China’s commitment to national defence amid external pressures. Notably, the specifics of military spending will be disclosed in a separate budget report later in the session.
China aims to promote greater private investment in key infrastructure and public welfare projects. As part of this effort, the government plans to reduce required reserve ratios and interest rates when deemed appropriate in 2025, according to a work report submitted to the national legislature for review on Wednesday.
China plans to issue 500 billion yuan (approximately 69.7 billion U.S. dollars) in special treasury bonds this year to assist major state-owned commercial banks in bolstering their capital reserves, as outlined in a government work report presented to the national legislature on Wednesday. The country will also refine and develop new structural monetary policy tools to enhance support for the stable development of the real estate sector and the stock market.
As part of its initiative to establish a high-quality education system, China will implement a phased approach to promote free preschool education, according to the same report. A three-year action plan aimed at strengthening education will be formulated and executed, focusing on improving the quality and balance of compulsory education while increasing the number of senior secondary school placements.
Furthermore, the report highlights plans to advance the integrated development of vocational and general education, fostering collaboration between industries and educational institutions to enhance the adaptability of vocational training. Reforms in higher education will also be categorised, with efforts to expand quality undergraduate programmes and accelerate the establishment of world-class universities and academic disciplines.
In 2025, China will introduce special initiatives to stimulate consumption, including the issuance of ultra-long special treasury bonds amounting to 300 billion yuan (about 42 billion U.S. dollars) to support consumer goods trade-in programmes. The report emphasizes the advancement of integrated and clustered development of strategic emerging industries, alongside promoting the safe application of new technologies and products in commercial space and low-altitude economies.
China will establish mechanisms to increase funding for future industries, focusing on sectors such as biomanufacturing, quantum technology, embodied artificial intelligence, and 6G technology. The government will also deepen comprehensive reforms in investment and financing within the capital market to encourage the entry of long- and medium-term capital.
Moreover, the report advocates for the healthy development of the platform economy, aiming to enhance its role in driving innovation, boosting consumption, and stabilising employment. Support will be extended to unicorn and gazelle companies in 2025, with an emphasis on nurturing innovative enterprises and promoting the growth of small and medium-sized enterprises that leverage specialised technologies to create unique products.
To safeguard financial security and stability, China will enhance its contingency plans for managing external shocks. Additionally, the government will allocate a larger portion of science and technology expenditures to basic research.
China remains committed to advancing the reunification process, improving institutions and policies to foster economic and cultural exchanges across the Taiwan Strait, and facilitating integrated cross-Strait development for the benefit of people on both sides. Furthermore, the report indicates that city-specific policies will be introduced to adjust or reduce property transaction restrictions, aiming to counteract the downturn and restore stability in the real estate market.
China rejects all forms of unilateralism and protectionism, and will champion international fairness and justice, as stated in a government work report presented to the national legislature on Wednesday for discussion.
The report affirms the country’s commitment to an independent foreign policy focused on peace and a trajectory of peaceful development. Additionally, it outlines plans to implement a series of major projects aimed at addressing climate change and to take an active role in guiding global environmental and climate governance in 2025, as detailed in the same report submitted to the legislature.
The government work report emphasises the need to fully and accurately implement the principles of “One Country, Two Systems,” “Hong Kong people governing Hong Kong,” and “Macao people governing Macao,” along with high degrees of autonomy. It calls for the maintenance of the constitutional order established by the Constitution and Basic Law, and the realisation of the “patriots governing Hong Kong” and “patriots governing Macau” principles. The report supports the economic development and improvement of living standards in Hong Kong and Macau, deepening international exchanges and cooperation, and better integrating into the national development framework to ensure the long-term prosperity and stability of both regions.
Additionally, the report asserts the commitment to uphold the overall strategy of the Party in addressing the Taiwan issue in the new era, adhering to the One China principle and the “1992 Consensus.” It firmly opposes “Taiwan independence” and external interference, promoting peaceful development of cross-strait relations. The report aims to enhance the systems and policies that facilitate economic and cultural exchanges between the two sides, deepen cross-strait integration, improve the welfare of compatriots, and steadfastly advance the cause of national reunification while working together to achieve national rejuvenation.
The “Two Sessions,” involve the gatherings of the Chinese People’s Political Consultative Conference (CPPCC) and the NPC. These meetings are critical for setting the government’s legislative agenda and economic strategy for the upcoming year. Analysts suggest that this year’s focus will include boosting domestic demand and fostering innovation in high-tech sectors, particularly in light of a potential trade war with the United States.
This year’s NPC features a diverse array of participants, including top Chinese leaders and industry representatives. However, notable figures from major tech companies are absent, replaced by leaders from emerging sectors, signalling a governmental shift towards investing in new technologies.
Analysts anticipate that while the Premier will address various foreign policy issues, a clearer picture of U.S.-China relations may emerge during Foreign Minister Wang Yi’s scheduled press conference later in the week.