The economy and AI are likely to be among the top issues for China’s legislature

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This article was published 04/03/2025 (277 days ago), so information in it may no longer be current.

BEIJING (AP) — Harnessing the power of artificial intelligence and shoring up the economy are among the issues expected to top the agenda when China’s legislature meets Wednesday in Beijing.

Almost 2,900 delegates have arrived in Beijing for the annual session of the largely rubber-stamp parliament, the National People’s Congress. Concomitantly, an advisory body of business leaders, athletes and academics, the Chinese People’s Political Consultative Conference, convened Tuesday. The two bodies’ concurrent meetings are known as the Two Sessions.

The weeklong parliamentary session, though largely ceremonial, helps to signal government priorities for the year. Premier Li Qiang is expected to announce an economic growth target of around 5%, in line with the past couple of years.

The meetings come as China’s economy struggles with sluggish consumption, a lengthy property crisis, ballooning government debt and a possible renewed trade war with the United States. On Tuesday, Beijing announced additional tariffs of up to 15% on imports on U.S. farm products including chicken, pork, soy and beef. The move came in retaliation for an increase in flat U.S. tariffs on Chinese products – from 10% to 20% – that came in effect at the same time.

“Undoubtedly, the adverse impacts brought by the external environment have deepened, and China’s economy still faces some difficulties and challenges,” said Lou Qinjian, spokesman for the National People’s Congress in a news conference ahead of the session.

“Internationally, rising economic and political uncertainties make it harder to stabilize external demand. Domestically, demand is insufficient, and some enterprises are experiencing operational difficulties,” he added.

The government is expected to announce some measures to boost consumption such as increasing the deficit ratio from 3% to 4%, though massive stimulus is unlikely.

Harnessing the power of artificial intelligence may also feature in policy announcements.

Lou described China’s breakthrough DeepSeek AI model, unveiled earlier this year, as an example of the country’s “innovative and inclusive approach to technology.”

The delegates are also set to review a law aimed at improving market conditions for private enterprises, as part of the government’s wider effort to signal support for the public sector to shore up growth.

Chinese President Xi Jinping met in February with business leaders, including Alibaba founder Jack Ma and Huawei CEO Ren Zhengfei, signaling support at the highest level of leadership.

“Xi realizes he needs the private sector to keep his underlying priorities chugging along,” said Neil Thomas, a fellow on Chinese politics at the Asia Society Policy Institute. “Improving China’s innovation capabilities, improving China’s technological self-reliance – the private sector is pretty good at this stuff, and Xi wants to harness rather than set free the private sector energy to achieve these goals.”

Beijing is also expected to unveil its defense budget for 2025. Last year, China announced a 7.2% increase in its defense budget, which is the world’s second-highest behind the United States’.

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Associated Press writer Ken Moritsugu contributed to this report.