China’s Strategic Focus on Political Stability and Sovereignty

Premier Li Qiang introduced the much-anticipated 2025 Government Work Report at the recently held 2025 Two Sessions, in which he laid out the administration’sadministration’s primary policy objectives and strategies for the coming year.

Premier Li Qiang delivered the much-anticipated 2025 Government Work Report (GWR) during this year’s Two Sessions, which are formally known as the consecutive assemblies of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC). These two key political bodies convened on March 5, 2025, when the NPC held its first session of this annual series of meetings. The Two Sessions are of considerable interest to global observers and investors, as they offer valuable insights into China’s political environment, policy goals for the upcoming year, and longer-term governance strategies, https://www.cnn.com/2025/03/10/business/two-sessions-china-key-takeaways-intl-hnk.

In the 2025 GWR, Premier Li Qiang laid out a comprehensive set of economic, political, and developmental priorities. These include a 5 percent GDP growth target, measures to stimulate domestic consumption, strategies to attract more foreign investment, initiatives for advancing China’s green transition, and mechanisms to mitigate financial risks. The report builds on these points, underscoring China’s steadfast commitment to political stability and safeguarding national sovereignty.

Reaffirming Sovereignty and Territorial Integrity

A notable feature of the 2025 GWR is an increase in the national defense budget, which now stands at RMB 1.69 trillion. Although this amount represents about 1.3 percent of GDP—relatively modest compared to many other major economies—it signals Beijing’s perception that international pressures, especially regarding Taiwan and various territorial disputes, pose serious challenges to sovereignty. The report explicitly states that China will ” resolutely oppose Taiwan’s independence and foreign interference,” implying that any threats to territorial integrity will be met with decisive actions.

Reflecting this stance, the GWR echoes previous statements by Chinese foreign ministers in asserting “no compromise” over issues about Taiwan. The overarching message is that Taiwan is considered a strictly domestic matter, and external powers are repeatedly cautioned against “playing with fire” in a domain Beijing regards as integral to China’s national identity and unity.

Beyond Taiwan, the GWR references longstanding positions in regions such as Hong Kong and Xinjiang, where maintaining strict governance and preserving national unity remain central objectives.

Domestic Stability as a Cornerstone of Security

Each year, the Two Sessions highlight the principle of “consultative democracy,” a governance model that blends expert advice, local-level representation, and strong central oversight. In 2025, a consistent theme across policy discussions is “maintaining stability while achieving progress.” This summarizes the final phase of the 14th Five-Year Plan, and also lays emphasis on the robust oversight of local authorities as a critical pillar of national security.

From an economic standpoint, the GWR restates a 5 percent GDP growth target, mirroring last year’s figure. Although less dramatic than past double-digit expansions, this goal remains notable given China’s external pressures. Policymakers view https://asiasociety.org/policy-institute/key-takeaways-chinas-two-sessions-2025    economic growth as vital for job creation—aiming for more than 12 million new urban jobs—alongside a surveyed urban unemployment rate of approximately 5.5 percent and inflation at around 2 percent. The ultimate goal of these metrics is to uphold consumer and investor confidence, thereby reinforcing social and political stability, https://www.economist.com/china/2025/03/05/chinas-leaders-reveal-their-plan-to-cope-with-2025.

Strengthening Economic Resilience Amid External Pressures

The 2025 GWR announces a rise in the fiscal deficit target from 3 percent to 4 percent, despite global headwinds. This shift reflects an intention to allocate more public resources toward infrastructure, social welfare, and strategically significant sectors. Supplementing this expanded fiscal posture, the government plans to increase special local government bonds to RMB 4.4 trillion and issue RMB 1.3 trillion in ultra-long-term government bonds earmarked for major capital projects.

Monetary policy, likewise, is set to become “moderately accommodative,” with possible reductions in reserve requirement ratios (RRR) and interest rates. These measures aim to preserve adequate liquidity within the financial system, allowing the government to protect the economy from trade disruptions, weak global growth, or the fallout of tariff conflicts.

Additionally, the GWR outlines strong support for consumer spending through mechanisms such as wage growth policies, tax relief, and e-commerce expansion. Highlighting “new consumption” areas—digital, green, and smart technologies—demonstrates the leadership’sleadership’s intent to bolster domestic demand and reduce dependency on external markets.

At the same time, the government is accelerating investment in advanced industries such as AI, semiconductors, renewable energy, and 6G communications. By emphasizing “scientific and technological self-reliance,” Beijing aims to minimize vulnerability to external supply chain shocks and overseas export restrictions.

Balancing an Assertive Posture with Global Engagement

On the world stage, China continues to showcase a ” higher-standard opening up,” suggesting it does not plan to isolate itself despite intensifying geopolitical frictions. This orientation is evident in the government’s pledge to pursue pilot programs in core sectors—telecommunications, healthcare, education, and internet services—while upholding rights for foreign investors. Initiatives like negative lists for foreign investment, innovation in Free Trade Zones (FTZs), and explicit commitments to national treatment seek to reassure international businesses that opportunities in the Chinese market remain abundant as long as these do not infringe upon the nation’s core sovereignty concerns.

Global Partnerships and ”Win-Win Cooperation”

The Belt and Road Initiative (BRI) remains the linchpin of China’s outward strategy, bolstering infrastructure development primarily in Africa, Latin America, and Southeast Asia. Through BRI projects, Beijing aims to build stronger economic links with emerging markets and simultaneously lessen exposure to Western economies. China’s active role in multilateral organizations—such as the G20, WTO, BRICS, and the Regional Comprehensive Economic Partnership (RCEP)—further underlines Beijing’s ambition to lead in reshaping global governance. The GWR’s call for “multipolarity” and “universally beneficial, inclusive economic globalization” conveys China’s vision for securing its global interests in tandem with its domestic priorities.

Reinforcing Security in a Complex Environment

The GWR designates “preventing and resolving risks in key areas” as a central priority. Concerns about local government debt and potential real estate market instability are recognized as possible threats to social harmony if not adequately addressed. Consequently, policymakers are combining stricter financial supervision with incremental monetary easing to maintain price stability without undermining long-term structural reforms.

Premiere Li Qiang’s report paints a candid picture of a “fragile recovery” and an “unusually complex international environment,” pointing to challenges such as trade barriers, U.S. tariffs, technology export curbs, and regional disputes. Nonetheless, Chinese leaders remain confident in the country’scountry’s institutional strengths, comprehensive industrial system, and large pool of skilled workers. These advantages, they believe, will help safeguard long-term expansion and sustain domestic calm.

Conclusion

The 2025 Two Sessions highlight China’s determination to link domestic stability with the protection of national sovereignty in an increasingly fragmented geopolitical climate. Premier Li Qiang’s Government Work Report, combined with broader discussions at the NPC and CPPCC, underscores a strategic blend of assertive territorial policies, ambitious economic targets, heightened fiscal and monetary measures, and a principled approach to open engagement.
https://www.reuters.com/business/finance/chinas-icbc-launches-11-billion-technology-innovation-fund-2025-03-12/

From Beijing’s perspective, fostering technological independence, fortifying supply chains, and offering a robust environment for foreign investors are not merely growth-oriented pursuits. Rather, they are integral to safeguarding national security and political unity, especially when faced with trade hurdles, global high-tech rivalries, and escalating tensions over Taiwan. Essentially, the 2025 GWR and the conversations at the Two Sessions provide a blueprint for navigating international uncertainty. Through balancing strong central governance, carefully moderated openness, and unwavering defense of sovereignty, China aims to reinforce domestic stability while gradually shaping the evolving global order in accordance with its own vision.