China's Two Sessions to Unveil Xi's Economic and Defence Strategy Amid Military Purge
China's Two Sessions: Xi's Plans Amid Military Purge

President Xi Jinping is set to attend the Two Sessions, concurrent gatherings of the National People's Congress and the Chinese People's Political Consultative Conference, an advisory body. This annual event serves as a critical platform for unveiling Beijing's policy directions and strategic priorities.

Significance of the Two Sessions in Chinese Politics

Thousands of delegates will converge in Beijing this week for China's annual Two Sessions, one of the most pivotal events in the nation's political calendar. It offers a rare glimpse for global media into the workings of China's top lawmakers and decision-makers.

The Two Sessions comprise the National People's Congress, China's legislature, and the Chinese People's Political Consultative Conference. While the NPC holds formal powers such as amending the constitution, appointing officials, enacting laws, and approving budgets, real authority resides with the Chinese Communist Party, which conducts separate meetings. Historically, the NPC has never rejected any agenda item, functioning largely as a rubber-stamp body.

Economic and Strategic Priorities for the Coming Year

This year's sessions are particularly crucial as they will officially launch the 15th five-year plan, outlining Beijing's economic and strategic goals for 2026-2030. The government's annual work report, released during the NPC, will set the GDP growth target, expected to drop below 5% for the first time, reflecting a shift towards technological self-reliance over rapid expansion.

Ruby Osman, a senior policy adviser at the Tony Blair Institute for Global Change, notes that the Two Sessions will reveal both short-term objectives and a broader strategy for navigating geopolitical and technological shifts. She highlights a potential mismatch between annual priorities and long-term goals, emphasising Beijing's focus on innovative capacity and resilience against US pressures.

Military Ambitions and the Shadow of Purges

The 2026-2030 period is key for China's strategic aims, including military readiness for potential actions regarding Taiwan, which Beijing claims as part of its territory. The five-year plan is anticipated to prioritise industrial self-reliance, particularly in advanced semiconductors, to counter US sanctions and bolster capabilities in artificial intelligence and defence applications.

However, recent high-level military purges loom over these plans. President Xi has placed top general Zhang Youxia under investigation for corruption, part of a broader trend where over 100 senior officers have been purged since 2022. The NPC recently revoked the membership of nine military delegates, underscoring the emphasis on political loyalty. Neil Thomas of the Asia Society thinktank remarks that these purges serve as a stark reminder of the non-negotiable nature of allegiance to the top leadership.

Economic Indicators and Domestic Challenges

Beyond defence, the Two Sessions will disclose key economic indicators, with the GDP growth target projected around 4.5%. Analysts interpret this as Beijing prioritising technological independence, even at the cost of slower growth. Yet, domestic issues such as high youth unemployment and an ageing population persist, and a focus on niche sectors may not address broader economic weaknesses, including struggles in real estate.

In summary, the Two Sessions will highlight China's dual focus on economic resilience and military preparedness, set against a backdrop of internal political scrutiny and global competition.