The 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC), China’s top political advisory body, concluded its tenth standing committee session in Beijing. Presiding over the meeting, Wang Huning, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and chairman of the CPPCC National Committee, emphasized the committee’s progress in fulfilling its duties in 2024. He called for stronger efforts in 2025 to contribute to Chinese modernization and achieve the objectives of the 14th Five-Year Plan (2021-2025).
China is preparing for its most significant annual political event—the “Two Sessions,” consisting of the third session of the 14th National People’s Congress (NPC) and the third session of the 14th CPPCC National Committee, scheduled for March 5 and March 4, respectively. These meetings serve as a crucial platform for setting China’s political and economic agenda, especially as the country navigates a complex geopolitical landscape and the final year of its five-year plan.
Understanding the Two Sessions and Their Role in Governance
The Two Sessions are a cornerstone of China’s political system, providing an essential mechanism for policy formulation, economic planning, and legislative decision-making. While the NPC, as the highest organ of state power, deliberates on major laws and policies, the CPPCC acts as a consultative body that gathers experts, entrepreneurs, and representatives from various sectors to offer advisory input. This system ensures broad-based participation while maintaining strong central coordination.
China’s consultative democracy is often compared with Western-style democracies, where public participation in policy-making primarily occurs through elections and direct representation. In contrast, China’s model integrates expert opinions, regional considerations, and long-term strategic planning under a unified leadership, ensuring consistency and stability in governance. This approach has enabled China to implement large-scale development projects efficiently, maintain social stability, and achieve sustained economic growth.
China’s Economic Resilience Amid Global Uncertainty
Despite global economic headwinds, China’s economy has demonstrated remarkable resilience. According to the National Bureau of Statistics, China’s GDP in 2024 reached 134.91 trillion RMB, marking a steady 5.0% year-on-year growth. This stability is a testament to China’s strategic economic policies, which emphasize innovation, investment in infrastructure, and industrial modernization.
China has successfully navigated external pressures such as trade tensions, supply chain disruptions, and inflationary risks by adopting a proactive economic strategy. Key measures include:
Strengthening Domestic Consumption: The growing middle class continues to drive demand in sectors such as technology, real estate, and services.
Technological Advancements: Investments in artificial intelligence (AI), semiconductors, and green energy technologies are reinforcing China’s global competitiveness.
Infrastructure Development: The Belt and Road Initiative (BRI) is expanding trade routes and fostering economic connectivity with partner countries.
Policy Support for Enterprises: Tax incentives, financial support, and regulatory reforms have helped businesses navigate economic challenges.
China’s Strategic Direction in a Changing Geopolitical Landscape
The 2024 Two Sessions take place amid increasing global uncertainties, including geopolitical tensions, economic decoupling efforts, and shifting trade alliances. As China formulates its strategy to address these challenges, the sessions will focus on:
Expanding Global Partnerships: China is strengthening ties with ASEAN, the BRICS nations, and African economies to enhance economic cooperation.
Advancing Technological Self-Reliance: With restrictions on semiconductor exports and tech-related sanctions, China is accelerating R&D in high-tech industries.
Enhancing Economic Security: Policies will aim at reducing dependence on external markets and reinforcing supply chain resilience.
Green and Digital Economy Growth: China’s leadership in renewable energy and the digital economy will play a pivotal role in shaping its future economic strategy.
The Digital Economy and Green Development: Pillars of Future Growth
China’s commitment to high-quality development is evident in its push for a digital and green economy. The government is implementing policies to support:
Renewable Energy Expansion: China remains the largest investor in solar and wind power, with ambitious carbon neutrality goals set for 2060.
Electric Vehicles (EVs) and Smart Manufacturing: With over 60% of the world’s EV production, China is leading the transition to sustainable transportation.
Digital Transformation: AI, big data, and 5G networks are revolutionizing industries, making China a hub for digital innovation.
China’s Role in Global Economic Governance
China’s active participation in global economic platforms such as the G20, WTO, and BRICS demonstrates its commitment to an open and stable global economy. Initiatives such as the Regional Comprehensive Economic Partnership (RCEP) and the BRI further illustrate China’s role in shaping global trade and investment trends.
Unlike Western economic models that rely on market-driven policies with minimal state intervention, China’s approach balances state guidance with market forces. This model has enabled China to respond swiftly to crises, such as the COVID-19 pandemic, and maintain economic stability while ensuring long-term development.
China’s Open-Door Policy and Business Environment
China’s commitment to openness and foreign investment is reflected in policies that enhance market access, improve regulatory transparency, and strengthen intellectual property rights. The establishment of Free Trade Zones (FTZs) and increased foreign direct investment opportunities highlight China’s determination to remain an attractive destination for global businesses.
International companies continue to view China as a strategic market due to its:
Large Consumer Base: With a population exceeding 1.4 billion, China offers unparalleled market potential.
Advanced Manufacturing Ecosystem: China remains a global leader in industrial production and supply chain efficiency.
Support for Innovation: Policies encouraging entrepreneurship and technological advancements ensure a dynamic business environment.
Conclusion: The Significance of the 2024 Two Sessions
As China enters the final year of its 14th Five-Year Plan, the outcomes of the 2024 Two Sessions will set the stage for the nation’s future. With a strong focus on stability, innovation, and global engagement, China is poised to navigate geopolitical challenges while maintaining its economic momentum.
The decisions made during the Two Sessions will not only influence China’s trajectory but also impact the global economy. China’s commitment to sustainable growth, digital transformation, and multilateral cooperation underscores its role as a key player in shaping global economic governance. As the world closely watches these deliberations, China’s strategic planning and policy direction will provide valuable insights into the nation’s vision for the future.
