China’s Legislature to Focus on AI and Economy

BEIJING – As China’s legislature prepares to convene on Wednesday, several key topics are poised to dominate discussions, with a strong emphasis on leveraging artificial intelligence and revitalizing the nation’s economy. This gathering marks the annual event of the National People’s Congress, which, though it functions largely as a ceremonial body, offers insights into the government’s intentions for the year.

The National People’s Congress, assembling nearly 2,900 delegates, runs in parallel with the Chinese People’s Political Consultative Conference—a body comprising business figures, athletes, and scholars. Collectively, these gatherings are referred to as the Two Sessions, drawing significant attention to their concurrent schedules.

Despite its largely formal nature, the parliamentary session has significant implications for signaling China’s policy directions. Anticipations are high for Premier Li Qiang to present an economic growth target close to 5%, aligning with the goals set in recent years.

This meeting unfolds as China grapples with a variety of economic challenges, including tepid consumer spending, ongoing issues within the property market, mounting national debt, and potential escalations in U.S. trade tensions. In response to the United States raising tariffs on Chinese products from 10% to 20%, China retaliated on Tuesday by imposing additional tariffs of up to 15% on U.S. agricultural imports such as chicken, pork, soybeans, and beef.

Lou Qinjian, a spokesperson for the National People’s Congress, highlighted ongoing economic trials, stating that China faces “adverse impacts” from external factors which have intensified. Furthermore, domestic challenges include insufficient demand and operational hurdles for some businesses.

In a bid to enhance consumption, the government is expected to increment the deficit ratio from 3% to 4%. Nevertheless, expectations for substantial stimulus remain low. The utilization of artificial intelligence technology is anticipated to feature prominently in upcoming policy declarations, notably with China’s advancements like the DeepSeek AI model illustrating the nation’s commitment to technological innovation.

Delegates will also evaluate legislation designed to create a more favorable environment for private companies. This initiative forms part of the government’s broader strategy to bolster the public sector in pursuit of economic growth. In February, President Xi Jinping met with key business figures, including Jack Ma from Alibaba and Ren Zhengfei from Huawei, underscoring leadership support for the private sector’s role.

Expert Neil Thomas, from the Asia Society Policy Institute, asserts that President Xi intends to capitalize on the private sector’s abilities. “Xi acknowledges the necessity of the private sector in advancing his core objectives, like enhancing China’s innovation and technological self-reliance,” Thomas noted, “He aims to harness the private sector’s energies towards achieving these goals rather than liberating them entirely.”

Furthermore, the defense budget for 2025 is anticipated to be disclosed, following last year’s 7.2% increase, positioning it as the second-largest defense budget globally after the United States.