Last week, Beijing hosted the conclusion of the “Two Sessions”: the annual meetings of the National People’s Congress (NPC)—China’s highest legislative body—, and the Chinese People’s Political Consultative Conference (CPPCC), which serves as an advisory body. In addition to setting economic, fiscal, and strategic goals, this year’s meetings focused on preparing the market for the upcoming 15th Five-Year Plan, to be launched next year, and shaping technological policies in response to trade pressures and protective measures from the Trump administration amid growing global competition.
Premier Li Qiang unveiled a series of ambitious economic goals, with the central objective being a GDP growth rate of “around 5%,” the same target as last year. To support this, the government increased its fiscal deficit to a record 4% of GDP and lowered the inflation target from 3% to 2%. These measures, alongside encouraging foreign investment, creating over 12 million jobs, and maintaining an unemployment rate below 5.5%, aim to boost domestic demand, reduce dependence on exports, and strengthen the internal economy to withstand external pressures. Additionally, priority will be given to addressing challenges in the real estate sector and improving social systems such as healthcare, pensions, and public security to ensure long-term solidarity and stability.
At a press conference on the sidelines of the meetings, Chinese Foreign Minister Wang Yi emphasized China’s role as a stabilizing force in global affairs. He argued that the aggressive actions and unilateral restrictions imposed by the United States—such as tariffs and sanctions—disrupt global markets and supply chains, while China seeks to provide a stable alternative to maintaining a functional global trade system.
To counter the technological arms race, China aims to accelerate growth through technological innovation, reducing its reliance on U.S. technology. Li Qiang highlighted China’s support for private entrepreneurship and competition among local governments to become technological leaders. As part of this effort, new AI and robotics development hubs will be established to create an independent technological supply chain. Trillions of yuan will be invested in issuing special-purpose bonds for infrastructure development and funding projects in quantum computing and renewable energy.
Notably, during the week-long conference, China’s AI platform DeepSeek was frequently mentioned for its global recognition and its role in driving a market recovery in China and Hong Kong. This highlights China’s commitment to deepening its technological independence and reducing reliance on foreign technologies—an approach that directly responds to U.S. policies and intensifying global competition.
The escalating rivalry between China and the U.S. may also impact smaller countries, including Israel. In the fields of high-tech and innovation, global competition is expected to introduce new players into the market, forcing Israeli companies to compete with an increasing number of international tech giants. Changes in global policies and economic pressures in both China and the U.S. will likely reshape supply chains and trade patterns, requiring Israel to adapt to the shifting landscape and reinforce its competitive advantages.
ByGSpeech
Last week, Beijing hosted the conclusion of the “Two Sessions”: the annual meetings of the National People’s Congress (NPC)—China’s highest legislative body—, and the Chinese People’s Political Consultative Conference (CPPCC), which serves as an advisory body. In addition to setting economic, fiscal, and strategic goals, this year’s meetings focused on preparing the market for the upcoming 15th Five-Year Plan, to be launched next year, and shaping technological policies in response to trade pressures and protective measures from the Trump administration amid growing global competition.
Premier Li Qiang unveiled a series of ambitious economic goals, with the central objective being a GDP growth rate of “around 5%,” the same target as last year. To support this, the government increased its fiscal deficit to a record 4% of GDP and lowered the inflation target from 3% to 2%. These measures, alongside encouraging foreign investment, creating over 12 million jobs, and maintaining an unemployment rate below 5.5%, aim to boost domestic demand, reduce dependence on exports, and strengthen the internal economy to withstand external pressures. Additionally, priority will be given to addressing challenges in the real estate sector and improving social systems such as healthcare, pensions, and public security to ensure long-term solidarity and stability.
At a press conference on the sidelines of the meetings, Chinese Foreign Minister Wang Yi emphasized China’s role as a stabilizing force in global affairs. He argued that the aggressive actions and unilateral restrictions imposed by the United States—such as tariffs and sanctions—disrupt global markets and supply chains, while China seeks to provide a stable alternative to maintaining a functional global trade system.
To counter the technological arms race, China aims to accelerate growth through technological innovation, reducing its reliance on U.S. technology. Li Qiang highlighted China’s support for private entrepreneurship and competition among local governments to become technological leaders. As part of this effort, new AI and robotics development hubs will be established to create an independent technological supply chain. Trillions of yuan will be invested in issuing special-purpose bonds for infrastructure development and funding projects in quantum computing and renewable energy.
Notably, during the week-long conference, China’s AI platform DeepSeek was frequently mentioned for its global recognition and its role in driving a market recovery in China and Hong Kong. This highlights China’s commitment to deepening its technological independence and reducing reliance on foreign technologies—an approach that directly responds to U.S. policies and intensifying global competition.
The escalating rivalry between China and the U.S. may also impact smaller countries, including Israel. In the fields of high-tech and innovation, global competition is expected to introduce new players into the market, forcing Israeli companies to compete with an increasing number of international tech giants. Changes in global policies and economic pressures in both China and the U.S. will likely reshape supply chains and trade patterns, requiring Israel to adapt to the shifting landscape and reinforce its competitive advantages.