China’s two sessions set economic course amid global tensions

2026-03-03 - 10:32

Thousands of delegates are gathering in Beijing for China’s annual “Two Sessions,” a key political event expected to define the policy direction of the world’s second-largest economy. The meetings of the National People's Congress and the Chinese People's Political Consultative Conference will focus on economic targets, legislative approvals and the launch of the country’s 15th Five-Year Plan covering 2026–2030. President Xi Jinping is set to attend, as in previous years, while Premier Li Qiang will deliver the government work report. Structure and decision-making process The National People’s Congress (NPC), composed of 2,878 deputies serving five-year terms, formally opens on March 5. It reviews draft laws, national budgets and development plans submitted by its Standing Committee. Parallel sessions of the CPPCC bring together representatives from business, academia and non-Communist parties in an advisory capacity. While the NPC convenes annually, its Standing Committee meets bi-monthly and holds authority to enact legislation and remove officials. Observers note that the agenda is typically finalized in advance and that voting outcomes overwhelmingly endorse submitted proposals. Political dynamics under Xi Since Xi took office in 2013, approval rates for legislation and official reports have consistently exceeded 90%, with recent years surpassing 95%. Analysts suggest this trend may reflect both broad alignment with central policies and stricter political vetting of delegates. The format of the meetings has also evolved: sessions have become shorter since 2020, and traditional post-NPC press conferences by the premier have been discontinued since 2024. Meanwhile, Xi’s anti-corruption campaign has led to the removal of senior military figures, although the People’s Liberation Army continues to be represented among NPC deputies. Economic priorities and the five-year plan This year’s highlight is the unveiling of the 15th Five-Year Plan, which is expected to prioritize “high-quality growth,” innovation and technological sovereignty. After achieving GDP growth of around 5% in recent years, Beijing is widely anticipated to set a more moderate target in the mid-4% range. Analysts argue the strategy signals a deliberate shift away from property-driven expansion toward industrial upgrading, green transition and research intensity. With rising geopolitical tensions and economic headwinds, the Two Sessions are poised to reaffirm China’s emphasis on self-reliance, employment stability and long-term structural reform.