Inside the Great Hall of the People, the imposing home of the Chinese legislature, with its vaulted roof and marble columns, huge crystal chandeliers, and red flags with five golden stars waving everywhere, there is a mix of solemnity and frenetic activity. Over 3,000 delegates from all corners of the vast Chinese territory occupy their seats in the main hall. From the third amphitheater, where the press is located, one can glimpse the colorful mosaic created by the contrast between the somber dark suits, military uniforms, and traditional folk attire worn by the deputies.
The National People's Congress (NPC) kicked off in Beijing on Wednesday, the annual meeting of the Chinese Parliament, where the political elite has presented part of the agenda that will set the course for the world's second-largest economy, starting with the commitment to allocate more fiscal resources to mitigate the impact of the trade war initiated by U.S. President Donald Trump.
While Washington pursues an isolationist and austerity policy, Beijing promises increased spending and further opening to the world. The Asian giant now advocates for greater trade openness, promoting foreign investment, and leading the fight against climate change, filling the void left by the U.S. after its withdrawal from the Paris Agreement.
During the week-long Chinese conclave, legislators typically put forth thousands of proposals, mostly focused on addressing local issues. However, they have no say in major economic, military, commercial, or environmental policies. These are decided behind closed doors by the core of the ruling Chinese Communist Party (CCP).
The first day was summarized by a one-hour sermon delivered by Prime Minister Li Qian. It is the reading of the "work report," where the Chinese government reveals some of its most important budgets and provides insights into how Beijing plans to boost its economic growth and technological transformation amid the ongoing wave of restrictions from the United States. This year, much attention was focused on the fiscal plans and stimuli to support growth amidst the new trade war with Trump and the significant domestic economic downturn due to weak consumption, investor exodus, deflationary pressure, and the real estate crisis.
The first anticipated announcement was the GDP growth target for this year at around 5%, the same as in the past two years. There were no surprises here. Nor in the increased deficit to 4%. Or the downward revision of the annual target for the consumer price index to around 2%, one point lower than the previous year, implicitly acknowledging a worrying decline in domestic demand. A trend that the government has been trying to reverse for months by subsidizing the purchase of certain goods, from appliances to electric cars, to boost consumption.
In the military field, an expected 7.2% increase in the defense budget was announced, in line with previous years. Li also mentioned that Beijing would boost the private sector, which gained prominence after President Xi Jinping met with major technology entrepreneurs last month to assure them that his government would grant more freedom to a sector that until recently faced a harsh regulatory crackdown.
Many eyes were on the plans for the technological race, especially in the field of AI following the overwhelming debut in January of the DeepSeek model. Also, on the review of the ambitious program launched a decade ago, the so-called "Made in China 2025," which aimed to promote self-sufficiency and innovation in key industries to narrow the gap with the U.S., which recently announced it would further restrict American investment in sensitive technologies in China. Li announced that Beijing will "unleash the creativity of the high-tech sector."
On Tuesday, after Beijing retaliated in Trump's trade war by imposing up to a 15% tariff on U.S. agricultural and food imports - the day before, Washington announced an increase in tariffs on China from 10 to 20% - NPC spokesperson, Lou Qinjian, portrayed his country as a staunch advocate of globalization and a source of stability for the global economy, contrasting with the chaos caused by the Trump earthquake. "China will provide more stability and certainty to the world by promoting the development of artificial intelligence, seeking cooperation with key partners, and supporting the Global South," Lou stated.
In the assembly's opening, Prime Minister Li, without mentioning the U.S., acknowledged the challenges facing his country due to increasing trade pressures. "China will remove market barriers and defuse risks in key areas to counter external shocks," he assured, leading to a standing ovation from those present.
The NPC is portrayed as the opportunity for legislators once a year to openly discuss policies and oversee the government's work. However, their role is essentially to endorse guidelines set by those on the highest stage of the auditorium, the 364 members of the CCP Central Committee. Among this group, the 24 Politburo members stand out, including the seven of the Standing Committee, the top leaders, with Xi Jinping at the helm and Premier Li Qian as number 2 and the main person in charge of economic affairs.
In the Chinese system, the CCP holds absolute power, controlling every government department, military force, court, and parliamentary meeting. The party directs everything in a pyramidal structure, with President Xi - as the party's general secretary, where his real influence stems from - at the top.