China's economic resilience and the global significance of the 'two sessions'

China's economy has demonstrated remarkable resilience and stability despite a challenging global environment. The recently released data from China's National Bureau of Statistics shows that in 2024, China's GDP reached 134.91 trillion RMB, marking a steady 5 percent year-on-year increase. This milestone underscores China's ability to maintain robust economic growth despite external pressures and internal adjustments. The country continues to play a pivotal role in global economic development, serving as a key driver of stability and progress.

The significance of the "two sessions" in the Chinese political system

As China prepares for the annual sessions of its top legislature and political advisory body—the "two sessions"—the world watches closely. The third session of the 14th National People's Congress (NPC) and the third session of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) will commence on March 5 and March 4, respectively. These sessions serve as an essential forum for setting the country's economic and political agenda, which hold immense significance, particularly as China moves towards the final year of its 14th Five-Year Plan (2021-2025).

The "two sessions" are a crucial element of China's governance model, allowing the government to set policy directions, review economic progress, and discuss key legislative matters. The National People's Congress, as the highest organ of state power, deliberates on major policies, legislative changes, and economic plans, ensuring national development remains on track. The CPPCC, as a consultative body, facilitates discussions among representatives from various sectors, providing advisory input on significant national matters. These sessions exemplify China's model of whole-process people's democracy.

At a time of rapidly evolving global geopolitics, the "two sessions" take on added significance. They will provide insights into China's economic policies, international engagements, and strategic initiatives. The decisions taken at these meetings will not only impact China's domestic trajectory but also shape the global economic landscape.

China's economic resilience and stability amid global uncertainty

China's ability to maintain steady economic growth is a testament to its strong policy framework and effective governance. The country has successfully navigated global economic challenges, leveraging innovation, investment in infrastructure, and policy reforms to sustain growth. The government's focus on high-quality development, digital transformation, and green energy has further strengthened economic stability.

China's economic resilience is particularly evident in its response to external pressures such as trade uncertainties and global inflation. The government has taken proactive measures to support businesses, enhance supply chain stability, and promote technological advancements. Additionally, domestic consumption continues to be a key growth driver, with rising incomes and an expanding middle class fueling demand across various sectors.

One of the most promising aspects of China's economic strategy is its emphasis on green development and the digital economy. China has emerged as a global leader in renewable energy, electric vehicles, and environmental sustainability. The country is accelerating investments in solar and wind power, enhancing energy efficiency, and advancing carbon neutrality goals. These efforts align with China's commitment to building an eco-friendly economy and addressing climate change challenges.

The digital economy is another key pillar of China's future growth. With advancements in artificial intelligence, cloud computing, and big data, China is fostering a highly innovative business environment. The rapid expansion of smart manufacturing, digital trade, and financial technology is creating new economic opportunities. The integration of technology into various industries is reshaping business models and enhancing global competitiveness.

Emerging trends such as the rise of smart cities, digital currency initiatives, and 5G-enabled services further illustrate China's forward-looking approach. The government's support for innovation and entrepreneurship is enabling businesses to thrive in the digital landscape, making China a hub for cutting-edge technologies and digital transformation.

China's open-door policies and its role in the global economy

Looking ahead, China's economic growth prospects remain strong. Key factors driving long-term development include continued policy support, structural reforms, and investments in critical sectors such as technology, healthcare, and infrastructure. The country's emphasis on self-reliance in advanced manufacturing and scientific research will further enhance its global position.

Amid growing global economic uncertainty, China's market continues to inspire confidence. The steady expansion of domestic consumption, improvements in the business environment, and enhanced trade partnerships contribute to sustained economic momentum. China's commitment to high-quality development ensures that growth is inclusive, sustainable, and aligned with long-term objectives.

China's economic development presents vast opportunities for global partners. As China deepens trade ties, expands foreign direct investment, and strengthens international collaborations, businesses worldwide stand to benefit. The Belt and Road Initiative (BRI) continues to enhance connectivity, infrastructure development, and trade facilitation, fostering win-win cooperation across regions.

China's growth also has a profound impact on global economic governance. The country plays an active role in multilateral platforms such as the G20, BRICS, and the World Trade Organization (WTO), advocating for open trade, fair economic policies, and global stability. As a key contributor to global supply chains, China's role in promoting economic resilience and cooperation is increasingly vital.

China has introduced a series of policies to enhance openness and improve the business environment for international investors. These policies focus on market access, intellectual property protection, regulatory transparency, and financial sector reforms. The establishment of free trade zones, increased foreign investment allowances, and support for multinational enterprises reflect China's commitment to fostering a conducive business climate.

International investors find China's policies attractive due to their long-term stability and growth potential. The country's proactive approach to reform and opening up ensures that global businesses can integrate into its dynamic market. Areas such as advanced manufacturing, digital economy, green technology, and financial services present compelling opportunities for collaboration.

Conclusion

The "two sessions" serve as a critical platform for shaping China's future direction and engaging with global partners. As the world navigates complex economic challenges, China's commitment to stability, innovation, and openness remains a key source of optimism. The country's achievements in green development, digital transformation, and economic resilience underscore its role as a leader in global progress.

With the final year of the 14th Five-Year Plan underway, China continues to chart a course for high-quality development, fostering economic prosperity and international cooperation. The decisions made at the "two sessions" will not only guide China's future but also influence global economic dynamics. As China strengthens its role in global economic governance, its constructive engagement and forward-looking policies will contribute to shared prosperity and sustainable growth worldwide.

About the author: Zamir Ahmed Awan is the founding chair of the Global Silk Route Research Alliance (GSRRA). He is a sinologist and former diplomat. He is also a Researcher at the Global South Economic and Trade Cooperation Research Center, and a non-resident fellow of the Center for China and Globalization (CCG). (E-mail: awanzamir@yahoo.com).