Wang Yi. AP
The PRC maintains a course of expanding openness to the outside world and removing barriers to cooperation
Last week, Beijing hosted sessions of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC). In Chinese terminology, these “two sessions” determine the direction of the country’s development and are the most important political events of the year. A distinctive feature of Chinese democracy is that in the run-up to the Two Sessions, NPC deputies and government agencies collect suggestions and comments from citizens and organizations. Moreover, this process is actively encouraged. For example, the State Council of the PRC provides an opportunity on its website for anyone to express their views and opinions. These contributions are then analyzed, consolidated, systematized and used in the work of the two sessions.
The NPC session heard the report of State Council Premier Li Qian and the development plan for the current year. The Premier said that in 2024, «the trend of economic stabilization has continued to strengthen». China’s GDP reached 134.9 trillion yuan, an increase of 5%, allowing the country to take a leading position among the world’s major economies in terms of growth rates, while its contribution to global economic growth remained around 30%. Similar growth rates are planned for the current year, although this is a challenging task in the context of deteriorating relations with the United States. Several Western institutions, notably the International Monetary Fund and the World Bank, have forecast a slowdown in China’s economic momentum this year to 4.6% and 4.5%, respectively — but they were already pessimistic on this point.
The two sessions clearly showed that China recognizes its problems and knows how to solve them. Domestically, there is insufficient demand to support economic growth and drive development through innovation. In the global marketplace, companies face intensifying trade disputes, rising protectionism, and a new wave of technological revolutions that are transforming industries, production models, and lifestyles.
China’s leaders have made it clear that the various challenges of development can only be addressed through steady reform and openness. In his report, Li Qian echoed a phrase used by Chinese President Xi Jinping in recent years: «The pace of change in the world is accelerating at an unprecedented rate». Hence, the Chinese response: to become less dependent on external circumstances, it is necessary to rely on its own strength and domestic market. China’s leaders are planning various measures to stimulate domestic demand-existing programs will be intensified, and new ones will be developed. The primary strategy, however, is to improve the well-being of the people, especially the underprivileged, reduce the debt burden, and expand social support. In this context, considerable attention has been paid to the development of China’s rural regions.
Other key objectives include increasing investment efficiency, developing production, improving the quality of education, reforming the budget, tax and financial systems, stabilizing foreign trade, attracting foreign investment and reducing carbon emissions.
Overall development will be based on the creation of «new quality productive forces». This broad concept includes the use of the latest technologies and the implementation of scientific achievements — such as artificial intelligence and autonomous systems — in production, services and everyday life. It includes 5G and 6G connectivity, robotics, «new» energy, and much more. Among the «industries of the future» that will receive special state support and increased attention from the Communist Party leadership and the government, Li Qiang highlighted biotechnology, quantum technologies, embodied artificial intelligence, and the deployment of 6G networks.
The government also plans a more accommodative monetary policy than in 2024. Budget spending will increase by 1.2 trillion yuan, reducing the deficit to 4%, and credit will be expanded through federal and regional bonds. At the same time, inflation is expected to fall from 3% to 2%.
Western commentators have particularly focused on the information revealed at the NPC session about a 7.2% increase in defense spending. However, this dynamic is within the traditional range — last year saw a similar increase, and military spending does not exceed 1.5% of GDP. As a result, the PRC’s defense budget will be $330 billion, compared to the Pentagon’s budget of nearly $900 billion.
In other words, China is not planning to militarize and, contrary to the claims of many propagandists, is not “preparing for war. Although its armed forces are actively modernizing and equipping themselves with the most advanced weaponry-now all of Chinese design and production, much of which has no counterpart anywhere in the world-China remains committed to a defensive posture.
Regarding Taiwan, Li Qiang stated, as he has in previous years, that the reunification of the motherland is one of the most important tasks. However, this does not mean immediate action, especially not by military means.
The Chinese leadership’s commitment to peaceful coexistence will manifest itself this year in the expansion of China’s openness and the creation of even more favorable conditions for foreign investment. Their cumulative volume has already reached $1.2 trillion. This is not only an opportunity for foreigners to benefit from China’s development, but also a guarantee for peaceful relations with other countries. «Regardless of changes in the external environment, we must always firmly adhere to a policy of openness to the outside world», the Chinese government report said. Numerous calls from the NPC podium urged other countries to expand cooperation not only in trade but also in other areas. China, for its part, will remove investment restrictions, lower tariff barriers, develop free trade and introduce visa-free entry.
Creating favorable external conditions for development is the primary task of Chinese diplomacy, Chinese Foreign Minister Wang Yi said at the NPC session. He criticized the protectionist policy of the United States, which is carried out from a position of strength without considering the interests of other countries. As for Sino-Russian relations, the head of Chinese diplomacy assessed that they meet the core interests of the peoples of both countries and remain resilient to changing circumstances. «We have decided to be good neighbors and friends forever, and to develop comprehensive strategic interaction and mutually beneficial cooperation… Mature, steadfast and sustainable Sino-Russian relations are non-cyclical; no matter what happens around us, they are not influenced by external factors, and have withstood both international turbulence and geopolitical games», Wang Yi said.