China's national "two sessions," a key political event shaping the country's policy direction, are set to convene in Beijing next week against the backdrop of a complex and challenging domestic and global environment.

The annual session of the top political advisory body, the Chinese People's Political Consultative Conference National Committee, will commence on Tuesday. The session of the top legislature, the National People's Congress (NPC), will open on Wednesday.

The Chinese premier, top legislator, top political advisor, chief justice, and top procurator will present work reports. Lawmakers will review the government's annual budget and development plan. They will deliberate an amendment to the law on deputies to the NPC and local people's congresses.

On the sidelines of the event, ministers from various government departments will engage with the public through interviews and press conferences, clarifying policies and responding to pressing concerns.

The "two sessions" serve as a critical window to observe China's development plan for the coming year. Decisions and policy announcements made here will not only affect the lives of 1.4 billion Chinese but also have an impact outside the country's borders.

So, what can be expected from this year's "two sessions"?

A journalist works at a press center for China's annual "two sessions" in Beijing, capital of China, Feb. 27, 2025. (Xinhua/Chen Yehua)

GROWTH TARGET FOR 2025

Typically, the GDP growth target set in the government work report is one of the most closely watched figures. As China's economy shifts toward high-quality development, GDP is not the sole measure of the economy. But it remains an important indicator.

In 2024, China achieved its growth target of around 5 percent, thanks in large part to a series of significant macroeconomic measures introduced to offset economic downturn pressure.

GDP growth serves as a cornerstone metric with profound and wide-ranging significance. Despite the challenges China's economy has faced in recent years, it is projected to contribute about 30 percent of global economic growth in 2024, making it the largest source of growth for the world economy.

Customers apply for trade-in subsidy from the government at a cashier in Fuyang, Hangzhou, east China's Zhejiang Province, Oct. 31, 2024. (Xinhua/Xu Yu)

INCREMENTAL POLICIES

To achieve its growth target, China will roll out more targeted policies to stimulate economic activity. The government work report is expected to announce policy measures to ensure the goal is met.

China has already signaled a shift in its macroeconomic stance. At the Central Economic Work Conference last December, policymakers pledged to roll out more proactive macro policies in 2025. Notably, they decided to adopt a "moderately loose" monetary policy, marking a significant departure from the "prudent" approach over the past 14 years.

The meeting outlined nine key priorities, with boosting consumption at the forefront. This reflects China's emphasis on domestic demand as a top economic priority. In 2025, large-scale equipment upgrades and consumer goods trade-in programs are expected to be promoted with greater intensity and in a broader scope.

According to Finance Minister Lan Fo'an, China in 2025 will actively use the room for a higher deficit, increase the issuance of local government special-purpose bonds, continue to issue ultra-long special treasury bonds, and increase transfer payments from the central government to local governments. The specifics of these plans will also be a key focus of this year's "two sessions."

INTERACTIONS BETWEEN LEADERS, LEGISLATORS, ADVISORS

During the "two sessions," Chinese leaders, who are NPC deputies themselves, will interact with their fellow lawmakers at group deliberations. They will also interact with political advisors to discuss hotspot topics that matter most to state governance.

These interactions serve as a window for observing how the central leadership stays informed about grassroots realities. This is a defining feature of Chinese democracy, often described in contemporary discourse as whole-process people's democracy.

In recent years, President Xi Jinping, a deputy of Jiangsu Province's delegation to the 14th NPC, has typically participated in the delegation's deliberations.

Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, also attended the meetings of the NPC delegation of the armed forces and joined group discussions of political advisors from various sectors.

During these interactions, Xi emphasized key priorities such as supporting the growth of the private sector and private enterprises, accelerating digital economy development, and advancing high-level opening-up -- all crucial to China's economic and social progress.

Robots weld bodyshells of cars at a workshop of Chinese electric vehicle (EV) maker Li Auto Inc. in Changzhou, east China's Jiangsu Province, Jan. 10, 2024. (Xinhua/Ji Chunpeng)

FOREIGN POLICY

The "two sessions" also shed light on China's foreign policy, as the foreign minister typically holds a press conference on the sidelines of the meetings.

Last year, Foreign Minister Wang Yi answered 21 questions during a 90-minute press conference, with journalists from across the world participating.

The foreign minister touched on various regional and international hotspot issues, such as the Ukraine crisis and the Palestinian-Israeli conflict. He also expounded on China's foreign policies toward Russia, the United States, Europe, and Global South countries.

During this year's "two sessions," China's propositions on international relations are particularly noteworthy against the backdrop of a rapidly changing and turbulent global landscape.

Humanoid robots from Chinese company Unitree Robotics are seen at the backstage of China Central Television (CCTV) Spring Festival Gala in Beijing, capital of China, Jan. 28, 2025. (Xinhua)

AI, INNOVATION

Without a doubt, technological innovation will be a key focus during this year's "two sessions," with the artificial intelligence (AI) industry very likely to take center stage.

Over the past month, Chinese tech start-up DeepSeek sent shockwaves through the global AI industry and capital markets by introducing an open-source and popular chatbot.

Domestically, companies such as Tencent, Baidu, and BYD have begun integrating DeepSeek into their products. Some local governments have also announced collaborations with the DeepSeek AI model to enhance public services, while others have organized training sessions to help officials and business professionals better understand the development and applications of DeepSeek and other AI technologies.

In fact, AI has already emerged as one of the hottest topics at many of this year's provincial-level "two sessions." Many AI-related plans mentioned in provincial government work reports focus on building innovation platforms, promoting deeper industry integration, and improving policy frameworks.

It's important to note that the rise of innovations like DeepSeek reflects China's commitment to taking the lead in technological advancements and its broader strategic focus on talent cultivation, innovation-friendly environment, business environment improvements, and the nurturing of non-public investments. These elements are expected to be underscored during the "two sessions."

Additionally, the sessions provide a crucial platform for lawmakers and political advisors to offer suggestions and foster broad consensus on national development. Some of them are corporate executives and leading researchers. What AI-related proposals and suggestions they will present will be a major point of interest for China watchers.