The Chinese People’s Congress has approved the economic policy plans of the leadership. The country is thus preparing for the trade conflict with the United States – and technological dominance.
With an outstanding majorities of his parliament, China is ready for the fight for technological dominance and the trade conflict with the United States. In Beijing, the Communist Party could be confirmed by the approximately 2,900 delegates at the end of the People’s Congress with thunderous applause. Prime Minister Li Qiang spoke of changes as “could not be seen in a century”.
For the first time in decades, China will increase its budget deficit to four percent of gross domestic product in a year -shaped year. Despite all the imponderables, the party is again an ambitious growth goal of “around five percent” for 2025. The Chinese should therefore buy more again to strengthen the economy. Peking wants to put Beijing into an exchange program from which private individuals and companies get discount on new devices, machines or cars from special bonds from special bonds from special bonds.
More social support
The party also promises to increase the income of low earners. Small grants for health insurance and more childcare and elderly care offers should take pressure from the families. Against the high unemployment among young people, more jobs and over twelve million positions in the cities should arise for university graduates – how, however, leaves the party open.
A fundamental reform of the social systems is also urgently needed, said Jacob Gunter from the China-Thinktank Merics in Berlin: “But the support in China is incredibly limited. If you strengthen them, this could contribute to a rethink of Chinese consumers.” Currently the Chinese would not consume little because they would save for retirement and health care.
Stabilization of the Real estate market planned
The crisis in the Chinese real estate sector, which is still burdening the economy a few years ago, is now to be released. The government plans to take additional measures to stabilize the market this year. According to the current work report, housing projects will be completed in the future reliably and on time. City regulations are also intended to receive more scope in order to adopt and complete projects from real estate developers.
In the People’s Republic, many people bought apartments from their savings – often as an investment. However, with the real estate prices that decreased due to the crisis, consumer confidence was vanished, which impaired consumption.
Support for technology and modernization
The Beijing government will also focus more on domestic technological progress this year. According to the current work report, future industries are to be funded even more intensively financially. The report refers, for example, to intelligent electric cars and smart robots as central technologies that are intended to shape China’s future economic development. One wants to “support the comprehensive use of AI models on a large scale,” it says.
China recently had remarkable success on AI. For example, the Chinese company Deepseek caused a stir with a AI-based voice model-a development that is considered a direct competition with similar US systems. This success is now to be built up.
Second largest military budget in the world
All of these measures should primarily boost the economy in the country. Because in a trade conflict that is expanding with the USA, the second largest economy in the world cannot build on the fact that exports only drive the economic engine. In the meantime, US President Donald Trump demands 20 percent tariffs for Chinese goods, and other countries also protect themselves from cheap products from the Far East. “No country should imagine that it can suppress China and keep good relationships with him in parallel,” said Foreign Minister Wang Yi.
This is how the People’s Republic also wants to show military strength. Your armaments industry develops a lot of war equipment instead of importing it, as can be seen from the report by the Stockholm Peace Research Institute Sipri. The equivalent of 1.78 trillion Yuan (currently more than 225 billion euros) is Beijing 2025 in his defense budget, an increase of 7.2 percent.
Foreign observers assume that the expenditure is much higher: “There are spending areas for defense that are not included in this budget or at least not be shown transparently as part of it,” emphasizes Meia Nouwens from the Thinktank “International Institute for Strategic Studies”. China appeases to spend less than the worldwide average for his military, measured by the gross domestic product. But the defense budget of the People’s Republic is considered the second largest in the world.
With information from Benjamin Eyssel, ARD studio Beijing.
