By Mewati Sitaram
China’s leadership has laid out a strategic roadmap for economic transformation during the recent “Two Sessions” meeting in Beijing. Thousands of delegates approved measures designed to establish China as a global technology leader while stimulating economic growth amid domestic and international headwinds.
Despite February’s consumer price index showing a concerning decline that highlights persistent deflationary pressures, Premier Li Qiang reaffirmed China’s commitment to achieving its ambitious 5% growth target through innovation and resilience.
Artificial intelligence has emerged as a centerpiece of China’s strategy. The success of DeepSeek, a Chinese AI firm whose language model competes with Western counterparts despite U.S. trade restrictions, has bolstered confidence in domestic innovation. In response, China announced a state-backed fund estimated at 1 trillion yuan ($138 billion) to support AI and other advanced technologies over the next two decades.
The government is also prioritizing emerging industries like biomanufacturing, quantum computing, and 6G technology, while encouraging private enterprises to lead technological advancements—signaling a potential shift from recent regulatory crackdowns.
To fuel economic expansion, China is increasing government spending with a budget deficit set at 4% of GDP, its highest level in decades. Policymakers are focusing on boosting consumer spending through job creation, wage increases, social welfare enhancements, appliance trade-in programs, and real estate reforms.
Throughout the gathering, China projected confidence in overcoming economic obstacles and geopolitical tensions. Foreign Minister Wang Yi took a firm stance against U.S. tariffs, emphasizing China’s commitment to technological independence and global economic leadership.
Editor in Chief : Mewati SItaram
