2025 "Two Sessions" - implementing reforms as follow-through from the "Third Plenum" in the face of insufficient domestic demand and Trump 2.0
- China Macro Group (CMG)
- Mar 19
- 2 min read
“Let‘s listen to market voices, collaboratively promote policy implementation and guide social expectations in a positive way”
«要注重倾听市场声音，协同推进政策实施和预期引导，塑造积极的社会预期»
— 2025 Premier Li Qiang presenting Government Work Report on 5th March 2025
March 2025 | This new CMG Primer, part of our continued tracking of China's macro policymaking to understand its strategic business context for foreign business, analyzes the key policy priorities presented at the 2025 “Two Sessions” holding the last NPC of the 14th Five-Year-Plan (2021-2025) policy implementation period that is concurrently the first NPC after the introduction of new reform package by the “Third Plenum” in July last year.
It concludes that there are no surprising policy signals – nonetheless, also this NPC leaves a mark with its own prioritization (esp. putting the domestic demand expansion again as the top priority), new concepts (e.g. “anti-involution” (反内卷) or “investing in people” (投资于人)), and especially reiterates the policy for strong monetary easing and fiscal expansion. It also briefly reviews the polity aspects of the "Two Sessions”, consisting of the NPC and the CPPCC meetings, the agenda of 8 busy days and gives face to the key scenic moments of this year's key political happening in Beijing.
It further includes three deep-dives respectively focusing on the policymaking priorities to address the structural issue of “insufficient domestic demand”, to progress on “new-quality productive forces” and to better unleash the non-public economy and improve the overall business environment. Finally, it analyzes China’s macro-economic management measures, the fiscal budget for 2025 and provides a synoptic view of key legislative projects over the past year, and proposes the key take-aways for foreign business.
