Dear Focus reader,

This week, China wrapped its annual Two Sessions, the plenary meetings of the National People's Congress and the Chinese People's Political Consultative Conference, setting economic targets and signaling policy priorities for the year.

As expected, the meetings were largely aimed at stabilizing growth and balancing China's priorities with engagement in global trade. They also continued Beijing's emphasis on technology, innovation, and domestic stability, with the Chinese leadership outlining plans to expand six emerging industries (semiconductors, aerospace, bio-medicine, low-altitude economy, new energy storage, and intelligent robots), accelerate AI development, and strengthen social provisions to encourage consumer spending.

Delegates highlighted the importance of maintaining China's manufacturing base, which analysts have described as a 'strategic asset in great power competition,' while setting a lower GDP growth target of 4.5–5 percent to allow room for structural reforms.

On foreign policy, Chinese Foreign Minister Wang Yi said the conflict in Iran "should never have happened," reflecting China's caution amid regional instability. Wang also underscored the importance of managing U.S.–China relations, calling on both sides to act "with sincerity and good faith" as the countries prepare for President Trump's visit later this month. China emphasized pragmatism and regional stability in its response to the Middle East crisis.

At the same time, high‑level U.S.–China trade discussions have entered a critical phase ahead of President Trump's anticipated visit to Beijing in late March, with U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng slated to meet in Paris this weekend. The leaders are expected to address tariff imbalances, potential Chinese purchases of U.S. agricultural and industrial goods, as well as U.S. exports of soybeans and Boeing jets, and broader structural issues in the bilateral economic relationship.

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