China's legislature debates economic growth and AI amid challenges

In Beijing, nearly 2,900 delegates of China's National People's Congress have gathered for their annual session, which is largely ceremonial but significant for outlining government priorities. The session comes at a critical time as the Chinese economy grapples with sluggish consumption, a prolonged property crisis, and rising government debt. Premier Li Qiang is expected to set an economic growth target of around 5%, mirroring the targets from previous years, as the government prepares to unveil measures to stimulate consumption. Additionally, the session will see discussions on the potential for harnessing artificial intelligence, with the Chinese government showcasing its DeepSeek AI model, signaling ambitious goals in innovating and incorporating technology into the economy. Concurrently, the Chinese People’s Political Consultative Conference is meeting to advise on various matters involving business leaders, athletes, and academics. Lou Qinjian, the spokesperson for the National People's Congress, highlighted the increasing difficulties faced by the economy due to external and internal challenges. The ongoing trade tensions between the United States and China are further exacerbating the situation, with China’s recent tariff announcements in retaliation to U.S. import tariffs on Chinese products adding more pressure. While the meetings primarily serve to lay out government policies, the focus will likely be on improving market conditions for private enterprises, showing the government’s willingness to support the private sector as a means of enhancing domestic economic stability. The discussions are underscored by a realization at the highest political levels, particularly by President Xi Jinping, who recognizes the necessity of the private sector in maintaining economic growth and technological advancement. A law aimed at creating a favorable environment for private companies will potentially be reviewed, reflecting a strategic approach to strengthen economic resilience. As the world watches, the defense budget for 2025 will also be unveiled, following last year's significant increase, which positions China as a key player in global military expenditures. All these developments underscore the complexity of managing an economy that is under strain from multiple fronts, necessitating a delicate balance of internal reforms and external relations.