China’s 2025 Two Sessions: AI, Trade Wars, and the Future of Innovation
China’s Two Sessions, an annual political meeting shaping national policies, focused in 2025 on AI leadership, economic growth, trade tensions, and military expansion. Explore how these decisions will shape China’s future.
AI
Harriet Comley
3/9/20252 分钟阅读
You may have heard the term “Two Sessions” or seen Chinese government members gathering annually, but what is it really about? The 2025 Two Sessions began on March 4 and will conclude on March 11. This major political event brings together the National People’s Congress (NPC)—China’s top legislative body—and the Chinese People's Political Consultative Conference (CPPCC)—an advisory body consisting of political parties, social groups, and individuals. The NPC alone has nearly 3,000 members.
The Two Sessions serve as a platform for China’s leadership to discuss critical national issues, approve policies, and set the country’s long-term agenda in economic, social, political, and military spheres. The decisions made here influence China's trajectory for years to come.
This year’s Two Sessions are particularly significant, as they take place amid the rise of China’s DeepSeek AI and the election of Donald Trump, a U.S. president known for his tough stance on China. With new U.S. tariffs—raising the minimum import levy to 20%—many tuned in to gauge China’s response and broader economic strategies.
Key Focus Areas of the 2025 Two Sessions
Economic Growth Targets
GDP Growth: Target set at around 5% for 2025.
Fiscal Deficit: Target of 4% of GDP, signalling increased government spending to drive economic recovery.
Support for Private Enterprises
In a rare move, President Xi Jinping hosted a private enterprise symposium on February 17, 2025, attended by top entrepreneurs. This demonstrates the government’s commitment to strengthening the private sector, which plays a key role in innovation and job creation.
Trade and Technology Tensions
China is devising strategies to counter U.S. tariffs while continuing to push for technological self-reliance and innovation.
Climate Goals and Challenges
China missed its 2024 carbon intensity reduction target, achieving a 3.4% decrease instead of the planned 3.9%. The shortfall was attributed to post-COVID economic recovery and extreme weather events.
Defence Budget
Increased military spending, with a focus on enhancing defence capabilities in response to regional tensions in Taiwan and the South China Sea.
Artificial Intelligence: China’s Next Frontier
AI and technological breakthroughs have been at the forefront of the 2025 Two Sessions, largely due to the U.S.-China tech rivalry. Foreign Minister Wang Yi (王毅) emphasised China’s ambition to be a global AI leader, stating that the country is open to sharing advancements with the world.
The following AI-related discussions took place:
Broad AI Applications: The government advocates for AI integration in education, sports, manufacturing, culture, tourism, and traditional Chinese medicine.
Business and AI: China Mobile executive Ma Kui (马奎) stressed the need for deeper corporate AI adoption and better education for small and medium enterprises to leverage AI.
AI in Healthcare: NPC Deputy Zhao Jing (赵静), also Vice Chair of BuChang Pharmaceuticals, proposed expanding AI in traditional Chinese medicine research and manufacturing optimisation.
AI in Sports: AI-assisted training has already benefited Chinese athletes, with short track speed skater Ren Ziwei (任子威) advocating for its future potential in competitive sports.
The 2025 Two Sessions highlight China’s strategic push for economic stability, military strength, and AI leadership, all against a backdrop of rising global tensions. The U.S.-China trade war and technological competition have further fueled China’s drive for self-reliance and innovation.
With AI emerging as a central theme, China’s message is clear: It aims to be a technological powerhouse, not just for its own benefit but as a global AI contributor. The world will be watching how these policies unfold in the months ahead.