China’s ‘Two Sessions’: Key Issues for Regime’s Annual Parliamentary Meetings

China’s rubber-stamp Congress holds its annual plenary sessions, known as the Two Sessions, which are expected to focus on the economy.

A police officer stands guard outside the Great Hall of the People in Beijing, China, on March 10, 2022. Kevin Frayer/Getty Images

China’s rubber-stamp Congress is scheduled to hold its annual plenary sessions, known as the Two Sessions, in early March in Beijing. The regime’s work report, which is expected to focus on economic issues, is to be delivered by the state’s premier.

The Chinese People’s Political Consultative Conference (CPPCC) and the National People’s Congress (NPC) constitute the two “houses” of China’s rubber-stamp congress. The CPPCC and NPC are often viewed as political formalities, given the regime’s firm grip on power.

The Two Sessions will convene on March 4 and 5 in Beijing, where delegates appointed by the Chinese Communist Party (CCP) from various provinces of China will gather for meetings.

Traditionally, the seven members of the CCP’s Politburo Standing Committee will engage in discussions with delegations from various regions and sectors. The issues during these discussions are often seen as indicators of the policy direction for the year.

Future of China’s Economy

During the Two Sessions, all eyes will be on the delivery of the work report by the state premier, Li Qiang, with particular interest in how the regime will determine the economic growth target.

Some observers believe China’s economic growth target for 2024 may continue to be set at around 5%, consistent with 2023.

However, official data released by the CCP in 2023 indicated that 17 out of 31 provinces in China failed to achieve their targeted growth rates, with investments declining in 9 provinces. The worst-performing provinces were Tianjin, Guangxi, Heilongjiang, Yunnan, and Qinghai, all characterized by high debt levels. The investment growth in these regions may remain constrained this year due to local debt risks.

At the national level, the investment growth target set by most provinces for 2024 is lower than that of 2023, and heavily influenced by efforts to prevent and resolve local debt risks.

China’s stock market is also facing a downturn, and despite repeated market rescue policies by the Chinese regime since the beginning of this year, significant improvements have yet to be seen.

During such challenges of economic downturn in China, the Two Sessions will serve as an indicator of the CCP’s corresponding policies to restore market confidence. Fiscal policies aimed at easing liquidity pressure on real estate enterprises, resolving local government debt, and supporting consumption are widely expected to be introduced.

China’s New Chief Diplomat

This year’s Two Sessions will also place a special focus on new personnel appointments. Following the dismissals of former Minister of Foreign Affairs Qin Gang and former Minister of National Defense Li Shangfu in 2023, observers will be closely watching whether the Two Sessions will fill the vacancies left by these two officials.

Since Mr. Qin was relieved of his foreign minister position, the role has been temporarily assumed by Wang Yi, director of the CCP’s Central Committee Foreign Affairs Commission Office. There has been speculation for some time that Liu Jianchao, currently serving as the head of the International Department of the CCP, may become the new foreign minister.

On Feb. 27, the Standing Committee of the NPC held its final meeting before the Two Sessions. A subsequent announcement stated that Mr. Qin “resigned” as a “delegate” of the NPC.

According to the announcement, a total of 4 people, including Mr. Qin, resigned from their positions as NPC delegates, while 7 others were dismissed from their positions, totaling 11 NPC delegates whose appointed positions were terminated.

Mr. Qin disappeared from public view in late June 2023. He was relieved of his position as foreign minister in late July, becoming the shortest-serving foreign minister in the history of the CCP. In late October, he was also dismissed from his position as a state councilor. The reasons for his dismissal have been widely speculated upon, with rumors even circulating about his death. However, the regime has yet to provide an explanation.

China's Foreign Minister Qin Gang attends a press conference at the Media Center of the National People's Congress (NPC) in Beijing, on March 7, 2023. Noel Celis/AFP via Getty Images

Dong Jun, who was appointed to replace Li Shangfu as minister of national defense at the end of 2023, is still awaiting confirmation of his state councilor status.

Currently, Mr. Qin is still technically a member of the CCP Central Committee. On the other hand, Mr. Li’s name was removed from the list of members of China’s Central Military Commission on Feb. 26, but he still retains the titles of NPC delegate and Central Committee member.

Defense Budget

The CCP is also expected to announce this year’s defense budget during the Two Sessions.

Since 2000, China has maintained its defense budget at approximately 2 percent of the country’s GDP. However, in pursuit of the so-called “2035 comprehensive military modernization goals,” there has been a notable increase in defense expenditure in recent years, with an annual growth rate exceeding 7 percent. Currently, China’s military spending is the second highest in the world, trailing only the United States.

Amid China’s current economic downturn and increasing fiscal pressures, the question of whether the CCP can continue to sustain high levels of military spending has become another focal point of this year’s Two Sessions.

Provocations Against Taiwan

The Two Sessions will also likely provide insights into the CCP’s Taiwan strategy.

Chinese leader Xi Jinping discussed cross-strait relations during the Two Sessions in 2015, 2016, and 2019. Following the presidential elections in Taiwan at the beginning of 2024, observers are keenly watching to see whether Xi will comment on Taiwan-related issues this year.

Wang Yang, chairman of the National Committee of the CPPCC responsible for Taiwan affairs, will participate in discussions with the NPC’s so-called “Taiwan delegation,” which is not elected by the people of Taiwan.

The regime’s annual work report also mentions Taiwan. During the press conference with domestic and foreign journalists before the end of the Two Sessions, there will typically be one or two questions related to Taiwan.

In January, Wang Yi, China’s acting foreign minister, stated after the Taiwan election that Taiwanese independence would be “harshly punished” by law. It remains unclear what actions the CCP intends to take that could be considered punishment by law.

Pro-Taiwan independence activists displaying placards calling for a referendum during a rally in Taipei, on Oct. 20, 2018. Sam Yeh/AFP/Getty Images

Delaying Retirement Age

The CCP may also announce a delay in the retirement age for Chinese people during the Two Sessions.

In recent years, the topic of delaying retirement has been prominent during the Two Sessions, with issues such as retirement age thresholds and the implementation of gradual retirement plans being of significant public concern.

As the 2024 Two Sessions event approaches, the topic will once again become a focal point. However, unlike previous years, policies in the current year seem to have already taken shape.

Chinese state media have cited a recent report from the Chinese Academy of Social Sciences, stating that a delay in the retirement age is imminent and that 65 may become the new retirement age for Chinese people.

Currently, the statutory retirement age in China is 60 for all men, 55 for white-collar women, and 50 for blue-collar women.

In recent years, the CCP has consistently signaled the need to delay the retirement age due to China’s aging population and shrinking workforce. However, each proposal has been met with a backlash and criticism from the Chinese public.