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SCMP Reporters

This live blog has been made freely available as a public service to our readers. Please consider supporting SCMP’s journalism by subscribing. New users who download our updated app get a seven-day free trial.
Premier Li Qiang presented the annual government work report at the opening ceremony of China’s top legislature, the National People’s Congress (NPC), on Wednesday.
The annual meetings of the top legislature and the top advisory body – together known as the “two sessions” – are being held amid global chaos that has erupted since US President Donald Trump returned to the White House.


More from our reporting:
– As Trump pursues isolationism, China vows to spend more and open to the world
– Everything at stake at China’s ‘two sessions’, as Trump 2.0 shapes the world
Reporting by Jane Cai, Frank Chen, Yuanyue Dang, Ji Siqi, Xinlu Liang, Josephine Ma, Sylvia Ma, Luna Sun and Enoch Wong.


China may be stunned by Trump’s lack of caution and understanding: ex-diplomat Kerry Brown

Why Trump’s trade war could fuel China’s ascent as a global power

Beijing’s top man in Hong Kong says city remains ‘safest’ in ‘chaotic world’

China’s economic successes are reshaping the Western media narrative

Two Sessions 2025 (Lianghui)

‘Two sessions’ 2025: Beijing to boost future tech, foreign investment, support Hong Kong – as it happened

Chinese Premier Li Qiang at the opening session of the National People’s Congress (NPC) in Beijing on Wednesday. Photo: AFP

News

China

Premier Li Qiang delivers highly watched annual work report, touching on GDP growth targets, foreign investment, future industries and more


Premier Li Qiang delivers highly watched annual work report, touching on GDP growth targets, foreign investment, future industries and more.


Liveblog

National People's Congress (NPC)

Chinese People’s Political Consultative Conference (CPPCC)

China economy

Live

Many are watching to see if Li will reveal details on new stimulus measures to boost China’s economy.
These would add to plans announced by the NPC Standing Committee in November to increase the quota for local special bonds by 6 trillion yuan (US$838.1 billion) over the next three years.
Separately, a total of 4 trillion yuan has been reallocated from local government budgets to swap out hidden debts over five years, with 800 billion yuan used annually through 2028.



Stimulus watch

The fiscal revenue of China’s local governments has declined in recent years amid a property crisis and pressure to repay interest on debt. This has raised questions about whether they are even capable of carrying out support policies called for by top leaders.
The policy package rolled out last year came with pledges of more “forceful” fiscal support measures to underpin China’s economic growth.
These debt-swap moves were intended to help the world’s second-largest economy reduce the mountain of local debt by 12 trillion yuan by 2028.


Tackling local debt

Li might provide clues about how China plans to support the private sector.
In a meeting with the country’s top entrepreneurs on February 17 – the first of its kind since 2018 – President Xi Jinping sent a clear signal of Beijing’s support for the private sector, particularly the tech industry.
China has moved quickly to follow through on Xi’s pledge. The National Development and Reform Commission vowed to accelerate updates to the country’s negative list, while the central bank pledged to lower funding costs and expand fundraising options for private firms.



Help for entrepreneurs

Li’s report could also reveal clues about China’s plans for science and tech development.
Finance Minister Lan Foan said last month that fiscal efforts to support Chinese tech breakthroughs were a government priority.
In an article in the Communist Party mouthpiece People’s Daily, Lan said his ministry would “focus on enhancing technological innovation capabilities, increase central government funding for science and technology, and fully support breakthroughs in critical core technologies” this year.


Tech support

Li is expected to announce a GDP growth target of 5 per cent for this year.
Goldman Sachs said in a report on Monday that this goal, combined with an inflation target of “around 2 per cent” and an official deficit ratio of 4 per cent of GDP appeared to be the “market consensus after rounds of policy communications”.



‘Market consensus’

Many onshore investors have expressed low expectations for other fiscal figures, including the issuance quotas for central and local government special bonds, according to Goldman Sachs
The investment bank said on Monday that investors were also interested in a detailed implementation strategy to boost consumption, normalise inflation, stabilise the property sector, and push forward AI-related investment and adoption.


Investor expectations

Jacob Gunter, lead analyst for economic research at Mercator Institute for China Studies, said on Thursday that Beijing had “consistently demonstrated a high pain threshold” for a prolonged economic slowdown.
“[It takes] a sledgehammer to the troublesome real estate sector, rather than resorting to large-scale demand stimulus to prop up growth,” Gunter said.
“As Xi continues to message that the nation must endure a protracted struggle with the US and its allies, the likelihood of major social and economic reforms to get money to consumers is low.”



‘High pain threshold’

Li’s government work report is expected to propose new remedies to bolster employment and set a target for the unemployment rate.
According to official data, China’s overall urban unemployment rate was 5.1 per cent in 2024, down one-tenth of a percentage point from 2023.


Boosting employment

Unemployment has been an especially tricky issue for China’s young people.
In December, the unemployment rate for those aged 16 to 24 was 15.7 per cent, an improvement from 16.1 per cent in November.
The jobless rate for this age group has steadily grown since 2020, hitting a historic high of 21.3 in June 2023.
According to China’s Ministry of Education, 12.22 million people will graduate from universities or colleges this year – 430,000 more than last year – bringing expectations of tougher competition for jobs.



Youth unemployment

NPC deputies are taking their seats in the main hall of the Great Hall of the People ahead of Li’s speech.


Deputies take their seats

Li’s work report will not cover figures for military spending. Those numbers will be announced in a separate budget report, also to be unveiled on Wednesday.
China said last year that its military spending would grow by 7.2 per cent to 1.69 trillion yuan, or US$235 billion.
A People’s Liberation Army delegation spokesman said at the time that China would direct much of its growing defence budget to combat readiness and “preparation for war”.



Military spending

Li begins delivering the annual government work report at the opening ceremony of the National People’s Congress.



Premier Li speaks

China has set a GDP growth target of around 5 per cent for this year. The target is in line with market expectations and unchanged from last year’s actual growth rate.
It has also set a deficit ratio of around 4 per cent, up from last year.
Beijing has set a surveyed unemployment rate target of 5.5 per cent, unchanged from last year.



China sets GDP target

China’s military expenditure will go up by 7.2 per cent in 2025 – the same as the increase for the last two years, according to a government budget document. The defence budget for this year is 1.784 trillion yuan (US$245.2 billion).



Military spending up 7.2%

China’s public security spending at the central level will rise to 242.83 billion yuan, up 7.3 per cent from 226.26 billion yuan last year.
This figure covers China’s spending on maintaining social order and funding law enforcement agencies.
Last year, China saw a number of fatal “lone wolf” attacks, including several that killed and injured foreigners.


Public security

This is Li’s second government report. He wins applause before he starts speaking.
He describes 2024 as a “remarkable year”, with achievements including the celebration of the 75th anniversary of the founding of the People’s Republic of China, which he says has inspired patriotism.


‘Remarkable year’

Li says the government has rolled out measures to stabilise the real estate market and lower interest rates for homebuyers.



Real estate market

Li pledges to deepen reforms, remove market barriers and boost private sector growth. He says China will expand zero-tariff treatment for the least developed countries and it will also expand visa-free entry to more countries.


Deepening reforms

Li says China has strengthened macroeconomic regulation to support recovery, focusing on key issues with targeted policies.
He highlights Beijing’s fiscal and monetary measures, including two reserve requirement and policy rate cuts.
China has also lowered mortgage rates and down payment ratios to stabilise the property sector, he says.
It has also expanded financial tools and raised the local government special debt quota by 6 trillion yuan to swap hidden debts, Li adds.



Supporting recovery

Li says China promoted technological transformation and manufacturing upgrades last year, with emerging industries and core digital industries accounting for 10 per cent of GDP.
He also says China’s new energy vehicle production surpassed 13 million units last year.



Tech and manufacturing upgrades

Li says China has increased student assistance, benefiting 34 million, and raised pension payments while giving subsidies to 11 million Chinese in need.
He also highlights strong tourism growth and celebrates China’s best-ever overseas Olympic performance in Paris.


More assistance

China has increased its opening-up efforts by granting zero-tariff treatment to all products from the least developed countries that have diplomatic relations with China, Li says.
The country has also expanded its list of visa-free nations and extended the transit visa exemption period to 240 hours, contributing to a continued rise in inbound tourism, he says.



Opening up

Li says China has strengthened its diplomacy, with President Xi Jinping attending the Shanghai Cooperation Organisation summit and Brics leaders’ meeting.
Beijing also hosted major events like the China-Africa Cooperation Forum, strengthening global partnerships and stability.
Li says China plays an active and constructive role in addressing global challenges and resolving international and regional hotspot issues.


World stage

Without naming the United States, Li acknowledges the challenges China feels on trade because of international pressure.
He says China will defuse risks in key areas to counter external shocks.



‘International pressure’

Li sends his “heartfelt gratitude” to people in Hong Kong and Macau, as well as to compatriots in Taiwan and international friends, noting the challenges posed by increasingly complex international relations that will affect China’s trade.
He says the world is undergoing accelerated changes unseen in a century.
The external environment is becoming increasingly complex, Li says, and potentially posing greater impacts on the country’s trade, technology and other sectors.


Challenges ahead

Li Qiang acknowledges rising global challenges, including trade and tech pressures, from protectionism to unilateralism.
Domestically, he cites an unstable recovery, weak demand, job pressures, and inefficiencies in governance.
He warns of bureaucratic inefficiency and corruption but stresses confidence in China’s long-term growth.
With institutional strengths, a vast market, and strong industries, he says China’s economy will stay on course.


Global challenges

Li says the GDP growth target of about 5 per cent is meant to stabilise employment, prevent risks and benefit people’s livelihood.
It is also intended to support economic growth potential and favourable conditions and link to China’s medium and long-term development goals, he says.



Growth potential

Li says China will improve contingency plans for handling external shocks to effectively safeguard financial security and stability. Domestically, the government will replenish the deposit insurance fund, the financial stability fund and other resources to help defuse financial risks.


Financial risks

Li says China will implement a moderately loose monetary policy, optimising and innovating structural monetary policy tools to more effectively support the healthy development of the housing and stock markets.
The country will also ramp up efforts to bolster technological innovation, green development, consumer spending, and the growth of private and small businesses, he says.



Monetary policy

Li announces a 4 per cent deficit target for 2025, with a total deficit of 5.66 trillion yuan. China will issue 1.3 trillion yuan (US$178.6 billion) worth of ultra-long term special treasury bonds in 2025. It will also release 500 billion yuan of special treasury bonds to support state-owned commercial banks.
Local government special bond issuance has been set at 4.4 trillion yuan, bringing total new government debt to 11.86 trillion yuan – 2.9 trillion yuan more than last year.


Special treasury bonds

Li announces China will earmark 735 billion yuan in the central government budget for investment, with a focus on key infrastructure projects.
China will optimise local government bond management and expand opportunities for private investment, he adds.



735 billion yuan for investment

Li says China will unleash the creativity of the hi-tech sector and boost AI, smart terminals and the Internet of Things, while 5G tech will be applied on a large scale.
He says Beijing will establish a mechanism for “future industries” to support hi-tech fields including biomaterials manufacturing, quantum technology, embodied intelligence and 6G.



‘Future industries’

Li says Beijing will strengthen legal protections and policy support for private enterprises, ensuring their legitimate rights.
He also vows to curb profit-motivated law enforcement against private companies, and says China will build a “unified market” and fight competition.


Private enterprises

Li pledges to expand “high-level opening-up” and stabilise foreign trade and investment. He says China will improve financial services, expand export credit insurance and support cross-border e-commerce and overseas warehouses. He highlights efforts to strengthen trade cooperation zones, integrate domestic and foreign trade, and develop green and digital trade.
He also vows to encourage foreign investment and expand pilot programmes in telecoms, healthcare and education. The premier says Beijing will improve services for foreign firms, upgrade free-trade zones and deepen market reforms. He pledges a better business environment and stronger cooperation under the Belt and Road Initiative.


More for foreign firms

Li pledges to advance tech self-reliance and accelerate major science projects.
China will reform research institutes, strengthen collaboration between industry and academia and give firms a bigger role in innovation, he says.
He adds that China will build an environment for innovation.
China will support young scientists, create a top-tier talent pool, and reform evaluation systems to encourage long-term research.
Li also vows policy support for tech commercialisation.


Innovation environment

Li stresses the importance of rural revitalisation and food security, vowing to stabilise grain production and improve quality. He says China will protect arable land, expand good quality farmland, and push forward innovation in the seed industry.
He calls for faster adoption of modern agricultural technology and equipment. “All regions must take responsibility for national food security to ensure a stable grain supply,” he says.



Food security

Li says China will continue to crack down on “illegal financial activities” and cope with external risks to maintain financial security and stability.


Security and stability

Li calls for regional development strategies to be leveraged to foster the drivers of new growth, highlighting the role of the Greater Bay Area. He urges major economic provinces to take the lead while encouraging all regions to develop their strengths and deepen industrial cooperation.



Greater Bay Area

Li says China will carry out a series of “major projects” to combat climate change, adding that the country will “actively participate in and lead global governance” on climate change.
Many have speculated that China will play a bigger leadership role on climate change since US President Donald Trump moved to withdraw the US from the Paris Agreement soon after his return to the White House.



Climate leadership

Li vows that China will curb profit-motivated law enforcement against private companies.
Over the past year, Beijing has worked to crack down on what it says are “illegal” investigations targeting private business and police activities that harm the business environment.


Profit-motivated policing

China will continue to create new jobs to stabilise employment and provide targeted support for key industries, grass-roots government as well as small and micro businesses, Li says. He also pledges to provide targeted help for fresh graduates, migrant workers and those who need it most.


Jobs and business support

Beijing will persist with “one country, two systems” and support Hong Kong and Macau to improve their economies, Li says.
Beijing will allow patriots in Hong Kong and Macau to govern themselves while supporting integration with the mainland to maintain long-term prosperity, he adds.



Hong Kong and Macau

Li reaffirms the ruling Communist Party’s absolute leadership over the military and vows to advance Xi Jinping’s military strategy. He pledges to strengthen combat readiness, safeguard national sovereignty, and push forward military-civilian reforms.
He calls on all levels of government to support national defence and military development. His remarks receive prolonged applause from the audience.



Military strategy

Li says Beijing will “resolutely oppose” Taiwan independence and interference by “external forces” in the island’s affairs.
Beijing will also promote the “peaceful development of cross-strait relations” as well as economic and cultural exchanges between the mainland and Taiwan, according to Li.



Taiwan

As Li concludes his work report, the Shanghai Composite Index drops 0.22 per cent and the CSI 300 Index loses 0.12 per cent.
The Hang Seng Index in Hong Kong gains 1.37 per cent.


Market reactions

Li gets a final round of applause as he wraps up his speech by rallying the country to strive for national rejuvenation.



Li wraps up speech

For the key takeaways from Premier Li Qiang’s work report, read our report here.
