By Sheriff Ghali Ibrahim, Abuja
In thematic interpretation it is a political and socio-economic engagement where members of the two bodies meet in a series of discourses, the highest law-making body of China which is the National People’s Congress (NPC) and the highest advisory body of China, the Chinese People’s Political Consultative Conference (CPPCC) to present the previous year’s report alongside the economic outlook of the current year. Usually holds in the month of March, with delegates from across the country. In this year’s opening session which spurred delegates spirited participation saw the highly anticipated Government Work Report (GWR) presented by Premier Li Qiang on behalf of the State Council which enveloped policy framework for the year ahead, prioritized economic outlines and regulatory measures that will influence investment decisions.
The teleological position of the two sessions, 2025, is hinged on the 2025 GWR, the 5 percent GDP growth target, industry and essential measures to be adopted in upscaling consumption and investment attraction. It was brazed with green transition for perpetual China’s modernization goal and modus for mitigating financial risks. The 2025 GWR highlighted stability in the previous year economic performance particularly with the year-on-year GDP growth and mitigated level of inflation and unemployment. China’s development in its economy showcases theoretical justification of juxtaposing economic advancement by containing two most economic evils (inflation and unemployment) and by sustaining GDP growth at a stable percentage.
The 2025 GWR has designated China’s Economy in 2024, with GDP growth of RMB 134.9 trillion (US$19 trillion) which justified +5 percent increment; 12.56 million new urban jobs; 5.1% surveyed urban unemployment rate; +0.2% of Consumer Price Index (CPI). China was able to record over US$3.2 trillion Foreign Exchange reserves with +5.1% increase in disposable income per capita. The report has shown a significant performance made by China in the year 2024, especially in production and industry. It achieved grain production output of over 840 million metric tons; over 13 million Electric Vehicles produced; +8.9% added value in high-tech manufacturing; +7.7% added value to equipment manufacturing; -3% energy consumption per unit; +10.9% added value in transmission software and IT services; +10.4% added value in leasing and business services and +370 million kilowatts of renewable energy installed capacity. This has utterly shown the unflinching nature of the Chinese leadership spirit of resilience and doggedness in advancing the national economy and developing the people.
The political economy of Chinese structural reform and policy development is discernible from the lens of invariable plan which is theoretically and practically executed through the leadership of the CPC and implementing instruments of government agencies, companies and other stake holders. It is also notable that 2025 marks the final year of the 14th Five-Year Plan, in which balanced approach has been adopted with the purpose integrating stability with incrementalism in economic progress and development. This notion goes in tandem with implementing emerging development concepts, speeding up in shaping a new development pattern and aiming at high quality growth. The notion of balanced approach depicts what has become part of the Chinese political culture of deepening reform, greater level of opening, modern industrial base development and securitizing the developmental tracks of the nation.
China seeks to secure its developmental journey by stimulating domestic demand, harmonization of industrial and technological innovation, harmonizing the real estate market and ultimately containing major risks and external shocks to avoid uncertainties by sustaining economic recovery and raising the living standards of the people as the country lays a drastic and solid foundation for the beginning of the 15th Five-Year Plan.
In dealing with fiscal measures, the GWR 2025 provided insights in the efforts made by the government in optimizing spending structures, prioritizing measures that enhance social welfare and consumption for the entirety of the Chines population and by ensuring that fiscal resources are allocated efficiently. The report suggests upscaling deficit ratio from 4% in 2024 up 1 percent. Deficit scale: RMB 5.66 trillion (US$776 billion), up by RMB 1.6 trillion (US$219 billion) from 2024. General public budget expenditure: Set at RMB 29.7 trillion (US$4.07 trillion), an increase of RMB 1.2 trillion (US$164 billion) from 2024. Ultra-long-term special government bonds: Planned issuance worth RMB 1.3 trillion (US$178 billion), an increase of RMB 300 billion (US$41 billion) from 2024. Special government bonds: Planned issuance worth RMB 500 billion (US$68 billion) to support capital replenishment for large state-owned commercial banks. Local government special-purpose bonds: Planned at RMB 4.4 trillion (US$603 billion), an increase of RMB 500 billion (US$68 billion) from 2024. Total new government debt: Projected at RMB 11.86 trillion (US$1.62 trillion), an increase of RMB 2.9 trillion (US$397 billion) from 2024.
The report captured monetary environment as one of the salient areas of concern. The report suggests government intervention in structural monetary policy, which will further support healthy development in key sectors like real estate, technology, green industries, consumption, and small and micro enterprises. These measures are designed to lower financing costs and enhance the availability of financial services, thereby contributing to a more stable and dynamic economic environment. The 10 key development tasks according to the report for 2025 include measures as follows:
Boosting consumption: Implement special actions to boost consumption, improve investment efficiency, and expand domestic demand.
Developing and upgrading industry: Cultivate and expand emerging and future industries, promote the transformation and upgrading of traditional industries, and stimulate the innovation vitality of the digital economy.
Developing science and innovation: Accelerate the construction of a high-quality education system, promote high-level scientific and technological self-reliance, and comprehensively enhance talent.
Promote implementation of landmark reform measures: Effectively stimulate the vitality of various business entities, deepen the construction of a unified national market, and deepen the reform of the fiscal, tax and financial systems.
Expand high-level opening up: Stabilize foreign trade development, encourage foreign investment, promote the “Belt and Road” Initiative, and deepen multilateral, bilateral, and regional economic cooperation.
Prevent and resolve risks in key areas: Continue efforts to stabilize the real estate market, resolve local government debt risks, and actively prevent risks in the financial sector.
Promote rural revitalization: Ensure stable production and supply of important agricultural products such as grain, consolidate and expand achievements in poverty alleviation, and promote rural reform and development.
Promote new urbanization and regional coordinated development: Implement the new urbanization strategy action and increase the implementation of regional strategies.
Promote carbon reduction, pollution control, green expansion, and growth: Strengthen pollution prevention and control and ecological construction, accelerate the development of a green and low-carbon economy, and actively and steadily promote peak carbon emissions and carbon neutrality.
Ensuring and improving people’s livelihoods while enhancing social governance efficiency: Stabilize and expand employment, strengthen basic medical and health services, improve social security and service policies, strengthen the construction of spiritual civilization, and maintain national security and social stability.
In developing new quality productive forces and promoting industrial upgrading, the government seeks to upgrade productive traditional sectors, and grow the digital economy, which will help transform and modernize traditional industries through digitization, connectivity, and smart upgrades. In realizing the goals of digital economy, the report outlines initiatives such as “AI+ action” (employing AI to boost efficiency in the real economy), and calls for better combining digital technology with manufacturing and markets, supporting the wide use of large AI models, and developing smart devices such as connected electric vehicles, AI phones and computers, robots, and smart manufacturing equipment. The report mentions the need to expand 5G use, accelerate the growth of the industrial internet, improve the national computing power system, and improve the data system, by making better use of data and improving cross-border data transfer regulations.
The 2025 GWR reflected on the significance of implementing the “new urbanization strategy action,” which will see the gradual integration of rural populations into cities, continued urban renewal, and the renovation of old residential areas for the betterment of the lives of the Chinese people, which according to President Xi Jinping, all efforts should be geared towards serving the people. The 2025 GWR of the Two Sessions is promising for not only China’s economic growth and development, but will co-opt Africa and the entire world, as China pursues a global policy for building a community with a shared future for humanity, this will be extended to all continents, regions and countries of the world as China produces not only for itself, but for the entirety of human race.
Prof Sheriff Ghali Ibrahim is the Director, Center for Contemporary China-Africa Research in Nigeria and Head of the Department of Political Science and International Relations at the University of Abuja.
