For those closely observing Chinese politics, this year’s annual parliamentary meeting conveyed a significant message: Beijing is set to increase investments in high technology, support its struggling economy, and prepare for a more adversarial geopolitical landscape.
The week-long session of the National People’s Congress (NPC), which concluded this week, featured rhetoric depicting China as a stable entity amid global chaos and celebrated technological advancements in artificial intelligence by companies like DeepSeek.
“This is the ‘DeepSeek congress’,” remarked Kerry Brown, director of the Lau China Institute at King’s College in London.
Brown noted that the timing of the NPC session, coinciding with the unpredictable trade and foreign policies of US President Donald Trump, heightened the pressure on Chinese leaders to distinguish themselves from the US.
For Beijing, it was a realization of the complex global situation they had been discussing for years, which has now become a reality, necessitating a mature response while other global players seem to be losing their grip.
During a press conference at the NPC, Foreign Minister Wang Yi emphasized China’s steady approach.
“The world today is woven with turmoil, and certainty is becoming increasingly scarce globally,” Wang stated. “Chinese diplomacy will firmly align with the right side of history and human progress. We aim to provide stability in this uncertain world.”
The NPC session is held in Beijing’s Great Hall of the People © Qilai Shen/BloombergEach spring, approximately 5,000 delegates and members convene in Beijing for the meetings of both the NPC and the advisory Chinese People’s Political Consultative Conference, collectively referred to as the “Two Sessions”.
These sessions are closely monitored by investors for indications of Beijing’s economic and strategic objectives, with analysts scrutinizing the Communist Party’s official speeches and documents for insights.
In recent years, Beijing has prioritized national security over traditional “development”—often equated with economic growth, according to analysts. However, last September, in response to a sharp decline in GDP growth attributed to a prolonged property sector crisis, leaders shifted their focus toward boosting consumption, announcing monetary stimulus packages and rekindling private sector activity.
In his “work report,” delivered at the start of the NPC, China’s second-ranking official, Premier Li Qiang, emphasized the necessity of “better ensuring both development and security.”
He also highlighted the crucial role of bolstering domestic demand—this year’s work report mentioned “consumption” 32 times, up from 21 mentions in 2024, even surpassing references to “technology,” which was mentioned 29 times.
Li also introduced the term “embodied AI” into the work report lexicon for the first time, referring to AI-powered robots and machines.
China has been suffering from weak consumption © Raul Ariano/Bloomberg
The central government’s budget for 2025, as unveiled during the NPC session, indicated an 8.3 percent year-on-year increase in spending on the technology sector—nearly double the increase in general fiscal spending and exceeding that for social welfare.
Delegates expressed strong support for Li’s focus on technology, with several interviewed by the Financial Times advocating for “embodied AI” and emphasizing the need to intensify investments in semiconductors.
“Humanoid robots have great potential,” said delegate Jiang Yuanxun during the NPC’s closing session at the Great Hall of the People, the vast political complex located in Tiananmen Square, Beijing. “DeepSeek is transforming our lives.”
CPPCC member and expert at the Chinese Academy of Sciences, Zhang Yunquan, noted that “the American technology chokehold” has hindered local AI pioneers like DeepSeek from accessing sufficient computing power.
“China will undoubtedly allocate more funds, talent, and teams to the development of its own high-end computing chips,” Zhang stated. “Eventually, we will overcome the computing power constraints.”
In discussions with provincial delegations, senior leaders emphasized the challenging economic conditions and global environment.
They frequently referenced “a complex and severe situation of increasing external pressure,” according to Manoj Kewalramani, who authors a newsletter that offers daily interpretations of the Communist Party’s flagship People’s Daily.
“They were signaling that challenges lie ahead . . . and we must adapt to this reality,” he remarked.
People lay flowers near the site in Zhuhai city where a man rammed his vehicle into a crowd, killing 35 people © Ng Han Guan/AP
For certain NPC delegates, the fragility of China’s domestic economy, grappling with deflationary pressures, emerged as a more urgent concern than global unrest.
“This year, consumer spending is notably weak, even more so than last year,” stated delegate Li Dexiang, who also serves as chair of retailer Guizhou Heli Supermarket Group. “I sense that the average consumer is becoming increasingly hesitant to spend.”
On the topic of real estate, Premier Li candidly acknowledged the sector’s downturn, asserting that the government would “stem the decline and restore stability in the real estate market.” In previous remarks, he had merely mentioned “defusing risks in real estate.”
The work report was also more straightforward regarding the government’s struggles with foreign direct investment, which has experienced significant declines in recent years. This year, it focused on “stabilizing” FDI, whereas in 2024 it had only mentioned “attracting” more foreign investment.
Discussions at the NPC also touched on concerns regarding social stability—an issue that gained prominence last year due to instances of mass violence.
The Supreme People’s Procuratorate’s work report, presented to the NPC, specifically cited two individuals convicted of mass murders in Zhuhai and Wuxi.
Kewalramani noted that a meeting between President Xi Jinping and the People’s Liberation Army delegation conveyed a critical message. During this meeting, Xi, who has been advocating for a comprehensive anti-corruption campaign within the PLA, urged “the establishment of a robust and effective oversight system to thoroughly investigate and address corruption” within the armed forces.
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Kerry Brown from King’s College remarked that while the NPC session conveyed a “relatively friendly tone towards foreign investment and China’s role as an internationally responsible player,” it revealed little about how Beijing plans to take advantage of opportunities presented by Trump’s confrontational stance toward third countries.
However, Foreign Minister Wang’s press conference provided a glimpse into Beijing’s strategic perspective. Wang highlighted a plan to enlarge the BRICS group of emerging nations and alluded to China’s aspirations for the “global south”—the numerous developing nations that Beijing has been engaging with in an effort to diminish US influence worldwide.
“We will continue to broaden equal, open, and cooperative global partnerships,” Wang asserted, expressing hopes to “forge a new chapter of unity . . . with the global south.”
Additional reporting by Wenjie Ding in Beijing
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