The 2025 Annual Sessions of the Chinese People's Political Consultative Conference (CPPCC) and the National People's Congress (NPC), held on 3-4 March, provided a crucial lens into the evolving framework of China's political, economic and foreign policy.
As the “Two Sessions” unfolded, the backdrop of a projected GDP growth of 5% for 2025 became a focal point, illuminating strategies to foster domestic consumption, enhance new qualitative productive forces and advance scientific and technological innovation.
Given the current global climate characterized by volatile geopolitics and the intricacies of US-China relations – especially in light of recent tariffs imposed by the Trump administration – the significance of these meetings was amplified.
On 20 March, Chamber leaders who also serve as members of the HKSAR in the CPPCC convened to discuss the key takeaways from these influential meetings.
Meeting 2024’s Targets
In 2024, China made remarkable strides across various sectors, achieving significant milestones that set the stage for future growth. In his Government Work Report, Premier Li Qiang said the economy reached a GDP of RMB 134.9 trillion, marking a growth rate of 5% and contributing approximately 30% to global economic expansion.
“Noteworthy achievements included record foreign trade figures, foreign exchange reserves exceeding US$3.2 trillion, and groundbreaking advancements in technology, epitomized by the Chang’e-6 mission,” said Chamber Chairman Agnes Chan.
The top three actions on the list of 10 tasks within this framework include efforts to boost domestic consumption, which is essential for driving economic activity and ensuring that growth is inclusive. Developing and upgrading industries to enhance productivity and competitiveness is another crucial element, as it positions China to adapt to evolving global market demands. Additionally, advancing science and innovation is paramount, fostering an environment where technological advancements can thrive.
Targeted Measures
To boost consumer spending, authorities have expanded the trade-in programme for used cars and household appliances, an initiative in 2024 to kick-start the economy. Other measures include boosting employment and raising the minimum wage.
Chan said advancing science and technology remains a top priority for the Chinese government, with large-scale AI applications and 5G technology expected to drive innovation across various sectors.
Regarding fiscal policy, China plans to issue ultra-long special treasury bonds totalling RMB 300 billion this year. The deficit-to-GDP ratio is around 4%, reflecting a commitment to maintaining financial stability while encouraging growth.
Chamber Vice Chairman PC Yu stated the Government hit many of its 2024 targets. With the 15th Five-Year Plan coming up in 2026, the announced policies will support traditional industries' long-term development while boosting investment in emerging sectors.
Progress was made in the integrated development of urban and rural areas to tackle poverty and boost livelihoods. By the end of 2024, the urbanization rate reached 67%, compared with 65% in 2023.
Underlining China's ongoing commitment to opening up, he said the Government was actively encouraging foreign investment. The renewed focus on boosting the private sector aims to enhance business confidence, especially with the United States imposing tariffs on Chinese exports.
Promoting the internationalization of the RMB is also a key focus, as it aims to strengthen the currency's global presence and facilitate global trade.
Nick Chan, Chairman of the Chamber's Legal Committee and HKSAR Deputy to the NPC, pointed out that the value added by the core industries of the digital economy accounted for approximately 10% of the country’s GDP in 2024. China leads the global 5G market with over 50% of the world's share.
Additionally, the value of technology contract transactions rose by 11.2%. The national carbon market achieved a historic high with a total annual transaction value of over RMB 18 billion. Regarding the manufacturing sector, China had removed all access restrictions from the “negative list” for foreign investment.
Concerted efforts are underway to enhance cooperation with ASEAN nations and Belt and Road countries to attract foreign investment. He said Hong Kong must consolidate and expand partnerships across the globe, while staying committed to true multilateralism.
Hong Kong’s Role
Former Chamber Chairman YK Pang stated the Two Sessions not only reflect the current state of China's economic and political landscape but also highlight the opportunities and challenges ahead for Hong Kong.
This includes the evolving role of Hong Kong and Macau within the broader national framework while shoring up their economies against external challenges and reinforcing the “One Country, Two Systems” principle.
“The Mainland is the world’s second-largest economy and Hong Kong’s biggest trading partner. Given our city’s role as a super-connector, businesses must remain agile and responsive to these evolving dynamics,” he said.
Furthermore, President Xi Jinping emphasized the need for Hong Kong to continuously innovate and reform, positioning it as an international hub for higher education and technology. This aligns with ongoing efforts to consolidate Hong Kong’s status as a leading hub in aviation, finance, shipping and trade while deepening integration within the GBA.
The call to foster innovation across the city’s industries also resonates with the broader national goals of enhancing technological self-reliance and driving sustainable growth across the country.