China s Two Sessions to focus on tackling wobbly economy amid growing trade war with US

BEIJING – China’s major annual political gathering kicks off on March 4, with all eyes on plans to reinvigorate its faltering economy in the face of domestic headwinds and an escalating trade war with the US.

Thousands of delegates from all over the country are gathering in Beijing to attend the Lianghui or Two Sessions – parallel sets of annual meetings of the National People’s Congress (NPC),or Parliament, and of the Chinese People’s Political Consultative Conference (CPPCC),a top advisory body of experts, business leaders, celebrities and representatives from political parties other than the ruling Communist Party of China.

The Two Sessions typically lasts about a week, with the CPPCC meetings starting on March 4 and the NPC ones the day after.

When the NPC meetings open on the morning of March 5, most economists expect Premier Li Qiang to announce a 2025 growth target of around 5 per cent – which would be similar to the target set for the past two years.

Mr Li will deliver the government work report, which consists of a recap and evaluation of efforts made in 2024 and a blueprint for the priority areas in the coming year.

The Chinese government is also expected to announce a larger fiscal deficit in 2025 of about 4 per cent of gross domestic product, compared with 3 per cent the year before, in order to fund measures such as those designed to boost household consumption.

UBS chief China economist Tao Wang said in a note that the government is likely to prioritise “stabilising growth” as the central task in 2025 and to boost domestic demand with more supportive macro policies.

With inflation barely growing in 2023 and 2024, many economists expect Beijing to revise down its ceiling for inflation, measured by the consumer price index,