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THIS WEEK:

Two Sessions come to a close, Wang Yi pushes back on U.S. policies, climate takes a backseat, huge pressure on employment, and China reaffirms AI ambitions

1. Two Sessions Wrap Up

What Happened: China’s annual Two Sessions concluded on March 11 with calls for consensus-building and collective efforts to advance “Chinese-style modernization.” Xi Jinping’s engagements emphasized regional economic development, high-tech innovation, education, military modernization, and engagement with non-CCP senior advisors.

Why It Matters: Beijing relies on the Two Sessions to solicit “bottom-up” feedback to foster national consensus around its priorities. According to an online survey conducted by the Chinese Communist Party, netizens identified “people’s livelihood,” “anticorruption,” and “social governance” as their top three concerns. Beijing’s pledge to boost consumption and enhance subsidies for childcare, healthcare, and pensions at the Two Sessions could help deliver the quality of life many Chinese citizens are hoping for.

By Lobsang Tsering, Senior Research Associate, Center for China Analysis

Learn More: In a collection of incisive essays, “Key Takeaways from China’s Two Sessions in 2025,” CCA experts analyze what the meetings mean for Chinese politics, the economy, and climate.

2. Wang Yi Pushes Back on U.S. Policies

What Happened: During a Two Sessions press briefing, Foreign Minister Wang Yi criticized U.S. trade policies targeting China and said Beijing is a “source of stability” to “anchor the world.” He also called out U.S. “containment” strategies and doubled down on China’s relationship with Russia, calling it “mature, resilient, and stable.”

Why It Matters: Wang’s press conference offered an unusually aggressive response to U.S. pressure. He accused the United States of a “two-faced approach” that “not only undermines the stability of bilateral relations, but also fails to build mutual trust.” This harder line is likely part of a dual-track approach to Washington: signal toughness while leaving open the possibility of negotiations.

By Lyle Morris, Senior Fellow on Foreign Policy and National Security, Center for China Analysis (@LyleJMorris)

Learn More: Explore more of Lyle’s analysis of the Two Sessions in “Military Modernization Stays Apace amid Complex International Environment.”

3. Climate Takes a Backseat at the Two Sessions

What Happened: Economic growth was reaffirmed as the top priority at the Two Sessions, putting environmental goals on the backburner. The Government Work Report set an energy intensity reduction target of around 3% for 2025 and altogether omitted a carbon intensity target. Reflecting on 2024, non-fossil fuels accounted for close to 40% of total electricity generation, while the average concentration of fine particulate matter fell by 2.7%.

Why It Matters: The absence of a carbon intensity target and the underwhelming energy intensity reduction target reinforce that climate action was deprioritized at the Two Sessions. Still, the real test for China’s climate ambitions will be revealed when its Nationally Determined Contribution is announced later this year.
 
By Taylah Bland, Fellow on Climate and the Environment, Center for China Analysis (@Taylahbland)
 
Learn More: Read “Climate on the Backburner, but Real Test Is China’s Nationally Determined Contribution” by CCA Senior Fellow Li Shuo.

4. Pledge to Relieve “Huge” Pressure on Employment

What Happened: Minister of Human Resources and Social Security Wang Xiaoping told a Two Sessions press briefing that “the pressure on employment remains huge and structural contradictions are sharper” as new technologies shake up the labor market. Li Qiang noted in his Government Work Report that the unemployment rate was 5.1% in 2024, and officials would ensure it stays below 5.5% in 2025.

Why It Matters: A lack of employment opportunities, low wages, and poor working conditions for gig workers have been major sources of public dissatisfaction. Adding to the pressure on Beijing to do more, 12 million university graduates will enter the workforce this year, and most are unlikely to find jobs that meet their expectations.

By G.A. Donovan, Fellow on Chinese Society and Political Economy, Center for China Analysis (@GA_DonovanASPI)

Learn More: Job worries are one of the many “Signs of an Unsettled Society” that G.A. wrote about in his contribution to CCA’s post–Two Sessions coverage.

5. Two Sessions Reaffirms AI as a National Priority

What Happened: During the Two Sessions, while China’s leaders were reaffirming that Beijing is going all in on technology and emphasizing AI-driven economic transformation, the country’s latest AI agent, Manus, was released. Manus is drawing comparisons to DeepSeek, but it is more of a usability breakthrough — it makes AI feel more interactive and intuitive — rather than a technological leap.

Why It Matters: Manus may not be a game-changing innovation, but it signals a shift. Its rise underscores China’s growing strength in autonomous AI agents, a key battleground in the global AI race. Comparisons to DeepSeek highlight U.S. concerns that China is rapidly closing the gap with Western AI leaders, while questions about data security and Manus’s opaque data practices add to broader anxieties about China’s AI ambitions.

By Lizzi C. Lee, Fellow on Chinese Economy, Center for China Analysis (@wstv_lizzi)

Learn More: Investment in AI is just one area where Lizzi shared her insights in “Recalibrating State-Private Relations.”