The global landscape is pushing nations toward stronger military readiness and self-reliance in technology. Chinese President Xi Jinping underscored this during the opening of the National People’s Congress, framing China’s rise as something to be safeguarded without calling out any single country by name. He warned that a Washington-led Western coalition posed unprecedented challenges to China’s growth and security, emphasizing the need for a robust defense that protects sovereignty and national interests.
Xi described the People’s Liberation Army as a formidable shield guarding China’s borders and strategic priorities. Before thousands of delegates gathered in the Great Hall of the People, he stressed the importance of unity in an unpredictable world where hidden threats require proactive measures. The speech suggested a renewed focus on resilience and self-sufficiency as China navigates external pressures and competition in advanced technologies and global markets.
Historical memories of colonialism and imperialism continue to shape China’s policy posture. The speech linked current tensions with perceived Western interference to those enduring legacies, while acknowledging the complex web of alliances and sanctions that influence Beijing’s strategic environment. Beijing signaled a careful balance between defending national interests and managing tensions with the United States, particularly around technology flow and strategic industries.
Parliament approved a military budget increase of 7.2 percent, a move that carries multiple interpretations. It represents a rise that is modest by some standards yet notable for being among the highest in recent years. The funding comes amid ongoing frictions with Taiwan and perceived American pressure in regional maritime zones. Xi reaffirmed that security forms the bedrock of development, and stability remains essential for prosperity.
Taiwan, short and predictable
The Taiwan issue remains non-negotiable in official discourse and is handled with a tone geared toward peaceful development, opposing independence movements, and advancing reunification efforts in a controlled, measured manner. The rhetoric reflects a shift away from sensational headlines toward steady, policy-focused messaging that positions China as steadfast and orderly. The language signals a preference for resolving differences through stability and gradual progress rather than abrupt, coercive actions.
The congress closed its annual session with resolutions tied to broader national goals. The leadership signaled confidence in continuing the current trajectory, with Xi consolidating his authority for a third term, and Li Qiang taking office as prime minister. The administration projects a more favorable economic outlook, aiming for a growth target around five percent, a modest moderation after years of rapid expansion. In his remarks, Xi touched on the private sector, emphasizing that, while challenges exist, there is room for private enterprise to thrive as policy directions evolve and space opens up for private initiative. The message to business leaders was clear: refining expectations and increasing confidence will help sustain investment and innovation as the economy recalibrates post-zero-COVID policies.
Observers noted that Yi Gang’s term as governor of the central bank concluded without surprises. Having spent years in the United States as a student and professor, he is regarded as one of China’s most accomplished technocrats. His reappointment to a leadership role is viewed by many as a stabilizing move during a period when the Chinese economy seeks steady growth and inflation containment. The broader consensus is that Beijing aims to keep monetary policy aligned with its growth and employment objectives, avoiding sharp shifts that could unsettle markets or undermine consumer confidence.