Why the Chinese Communist Party's annual gathering matters: A Deep Dive
The Stage is Set for a Power Play
As the world's second-largest economy gears up for its biggest political meetings of the year, the atmosphere is electric. With the backdrop of global tariffs, a contracting domestic economy, and a tariff war with the United States, the Chinese Communist Party (CCP) is poised to deliver policy announcements and economic targets that could shape the nation's future. But here's where it gets controversial: the impact of these decisions will have far-reaching consequences for the global economy and the future of technology.
The Annual 'Two Sessions'
The annual 'Two Sessions', or liang hui, are a major platform for policy announcements and economic targets. The Chinese People's Political Consultative Conference (CPPCC), an advisory body with roughly 2,000 members, will kick off its session on Wednesday, followed by the country's legislature, the National People's Congress (NPC), with its 3,000 delegates, the day after. These delegates aren't just politicians; they include industry leaders like basketball legend Yao Ming and Lei Jun, CEO and founder of consumer electronics company Xiaomi.
A Media Spectacle
While the meetings are a major platform for policy announcements, they're also a media spectacle reported on by thousands of journalists. On Thursday, Premier Li Qiang is expected to deliver the annual government work report at the NPC — a blueprint for the country's policy priorities and socioeconomic goals. But here's where it gets thought-provoking: despite the highly orchestrated nature of these meetings, what comes out of them, especially the NPC, will be an indication of where the country is headed.
China's Tech Push and AI Dominance
China is tightening its control over the export of rare earth elements, giving it powerful leverage over the United States. This move is a clear indication of China's dominance in rare earth mineral mining and processing, and its unabashed use of this dominance in its tariff battle with the United States. In fact, China might be winning the AI race, and this could have significant implications for the future of technology.
A Stagnant Economy
However, the country's domestic economy is facing challenges. In part a result of a downturn in its property market, China continues to suffer from low demand. Despite expanding its GDP by five per cent last year, the International Monetary Fund projects 4.5 per cent growth in 2026. This stagnation could have significant implications for the country's future economic growth.
Iran's Oil Exports and Geopolitical Tensions
Another subject expected to feature at this year's meetings is the war in Iran. The country is not only an ally, but the majority of its oil is exported to China. Any disruption in the Strait of Hormuz will hurt not only China but other countries as well. This could have significant geopolitical implications for the region.
Xi's Purges and Military Stability
Journalists and observers will also be looking closely at the seating arrangements at the NPC. China's highest-ranked general, Zhang Youxia, was ousted earlier this year, one of the highest-profile purges following years of Xi's efforts to clamp down on what the party called 'violations of discipline and law'. This could have significant implications for the stability of the region's military.
Tariff Wars and China's Rise
Ultimately, the massive meetings will be a chance to showcase China's strengths. After all, it would appear at this point that Beijing has weathered Trump's trade war fairly well. The Two Sessions will be happening after a parade of world leaders met with Xi in the last few months, including Prime Minister Mark Carney. But here's where it gets controversial: the impact of these decisions will have far-reaching consequences for the global economy and the future of technology.
