Lay Out Vision For Economy, Diplomacy

China’s much-talked-about ‘Two Sessions’ commenced on Tuesday amidst the complex geopolitical and economic challenges. The assemblies of top legislative and advisory bodies have deliberated on the country's accomplishments last year and drawn up a blueprint of economic development for 2025. The parallel sessions of the National People’s Congress (NPC) and Chinese People's Political Consultative Conference (CPPCC) provide a rare opportunity for the grassroots delegates from across the country to discuss burning national and regional issues with the heads of state and government in a candid manner. These consultative conferences serve as the Chinese version of democracy in which public opinions are aired in a way elected representatives do in electoral democracies.  

The most important aspect of the annual event is the government work report (GWR), which Premier Li Qiang presented in the opening session of NPC Wednesday, unveiling the country’s new economic vision and plans. President Xi Jinping has interacted with representatives of both state’s organs on various matters at 10-day long sessions. Chinese Foreign Minister Wang Yi highlighted the foreign policies of the second largest economy at a time when the international diplomacy is undergoing seismic shifts with the election of Donald Trump as the US President. 

Resilient economy 

With a 5 per cent year-on-year Gross Domestic Product (GDP) growth rate, China’s economy has remained robust, resilient and vital engine of global growth, according to the report. In 2024, China’s GDP stood at RMB 134.9 trillion (US$19 trillion), the number of urban jobs was 12.56 million, the urban unemployment rate was 5.1 per cent, foreign exchange reserves were over US$3.2 trillion, and disposable income per capita was 5.1 per cent. The report seeks to boost domestic consumption, modernise industry, attract foreign investment, develop science and innovation, implement landmark reform measures, expand high-level opening-up, prevent and resolve risks in key areas and promote rural revitalisation. Other goals include new urbanisation and regional coordinated development, carbon reduction and green expansion and growth, improvement of people’s livelihoods and social governance efficiency. 

Despite global turbulence, the basic trends of the Chinese economy remain unchanged. China has made unprecedented achievements in the fields of global trade, railway transportation, telecommunication infrastructure, artificial intelligence, tourism and industrial growth. Its high-speed railway networks, which cover 45,000 kilometres, have become a conveyor of the domestic economy. Its 4.5 million 5G base stations have catapulted it into a global leader in technology. It has been the largest trading partner of over 140 countries, contributing around 30 per cent to global growth. The value of ‘new trio’ exports – electric vehicles, lithium-ion batteries and solar panels – crossed 1 trillion RMB in 2023, putting China at the forefront of green globalisation. 

The inbound foreign visitors surged by 150 per cent during the 2025 Spring Festival, with visa-free entry for scores of Asian and European countries. Last year, around 13 million university youths joined the workforce, adding fresh vigour to its economy and technological development. Under the socialist market economy, the Chinese government has promoted the private sector as the driving force for the growth of export and innovation. It has offered tax incentives, simplified regulations and extended financial support to private businesses. The RMB has increasingly become an international currency as its use in Belt and Road transactions has grown rapidly. More than 150 countries have been part of the Belt and Road Initiative (BRI).

China’s foreign policy has again come into the spotlight given the US’s unexpected rapprochement with Russia and the new round of trade war with China. Some have speculated that Russia might sacrifice China and Iran for the sake of a peace deal with the US on Ukraine. This was signalled by Trump's special envoy, Keith Kellogg, in Munich recently. He said that the US hoped to ‘force Putin’ to take actions that are uncomfortable for him, including breaking alliances with Iran, North Korea and China. Similarly, in Riyadh, Secretary of State Marco Rubio hinted at the possibility of future geopolitical and economic cooperation between Moscow and Washington, which might alienate the allies of both global powers.

However, Chinese foreign minister Wang has brushed off such speculations at a press conference held on the sidelines of Two Sessions on Friday. “No matter how the international landscape evolves, the historical logic of China-Russia friendship will not change, and its internal driving force will not diminish,” he said, adding that Sino-Russia ties were mature and resilient and were a stabilising force in the world. Highlighting China’s foreign policy, he noted that his country would provide certainty to this uncertain world, implying that China will step up to the plate as the US is withdrawing its engagements from major multilateral agencies. 

Neighbourhood diplomacy 

It is interesting to see how Sino-U.S. relations move as Trump is pushing his American First agenda. While criticising the USA for 'suppressing' China's development on several occasions, China's top diplomat stressed mutual respect as the basic principle governing their relations and cooperation to bring about mutual benefits. As China stands for the cause of the countries in the Global South, there is a need for greater cooperation among them. 

China's neighbourhood diplomacy is characterised by 'amity, mutual benefit and inclusiveness.' In line with this diplomacy, China has opened up new prospects in developing friendship and cooperation with neighbours. China's thriving and buoyant economy is an opportunity for Nepal, a next-door neighbour, as it faces massive unemployment, slow growth, brain drain and dwindling manufacturing and agriculture, among others. Hidden geopolitical obstacles have come in the way of the implementation of BRI projects agreed upon by both nations. Nepali political parties require forging common understanding to secure Chinese support to open export-oriented industries in Nepal to create employment opportunities and revitalise the national economy. 

 (The author is Deputy Executive Editor of this daily.)