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China’s Two Sessions: Economy, AI Race, and Global Impacts
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China’s Two Sessions: Economy, AI Race, and Global Impacts

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Last updated: March 3, 2026 9:35 pm
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Published: March 3, 2026
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Tiananmen Square, typically bustling with millions of tourists annually, stands nearly deserted. Authorities have sealed off the area as the Great Hall of the People in Beijing hosts thousands of delegates for China’s premier political gatherings, known as the Two Sessions or liang hui.

Contents
Heightened Security MeasuresKey Meetings UnderwayTechnology Push and Rare Earth DominanceEconomic Challenges AheadGeopolitical Tensions: Iran and TradeMilitary Purges in Focus

Heightened Security Measures

Security intensifies in central Beijing for these key meetings. Police presence surges, facial recognition scans visitors at checkpoints, and officers patrol with sniffer dogs amid festive Spring Festival decorations on Qianmen Street. A temporary ban on drones enforces added vigilance.

Key Meetings Underway

The Chinese People’s Political Consultative Conference (CPPCC), featuring about 2,000 advisory members, convenes on Wednesday. The National People’s Congress (NPC), with 3,000 delegates, follows on Thursday. Attendees span beyond politicians to include basketball star Yao Ming and Xiaomi CEO Lei Jun this year. Actor Jackie Chan has participated in the past.

These sessions serve as prime venues for policy reveals and economic targets, drawing global media attention. Premier Li Qiang delivers the government work report Thursday, outlining policy priorities and socioeconomic aims.

Technology Push and Rare Earth Dominance

China asserts leadership in AI and controls vital rare earth minerals, essential for high-tech advancements. This dominance bolsters its position amid U.S. tariff tensions, regardless of trade outcomes.

“People will be watching to see where China places priority in terms of its economy and social growth,” states Jia Wang, senior fellow at the University of Alberta’s China Institute.

The latest five-year plan, formally adopted at the Great Hall, emphasizes self-reliance in AI and green energy transitions.

Economic Challenges Ahead

President Xi Jinping highlighted economic expansion goals for the next five years during a recent Politburo meeting. Yet, a slumping property sector fuels low domestic demand. Despite 5% GDP growth last year, projections point to 4.5% in 2026, per International Monetary Fund analysis, amid mounting pressures despite resilience to shocks.

Logan Wright, partner and director of China markets research at Rhodium Group in Washington, D.C., describes the technology focus as a “security-focused strategy” rather than broad growth, noting it employs few workers. China leans on discounted exports to counter stagnant demand, sparking overcapacity concerns globally.

Analysts anticipate a 4.5% to 5% growth target announcement, signaling a shift to high-quality development.

Geopolitical Tensions: Iran and Trade

Discussions likely address Iran’s conflict, a major oil supplier to China. “Any disruption in the Strait of Hormuz will hurt not only China but other countries as well,” warns Huiyao Wang, founder of the Beijing-based Center for China and Globalization. Short-term resilience holds, but long-term risks loom.

Beijing showcases strengths post-U.S. tariff battles and recent leader summits, including with Prime Minister Mark Carney. Upcoming Trump visit underscores shifting dynamics.

Military Purges in Focus

Seating charts at the NPC draw scrutiny amid high-level changes. Top general Zhang Youxia faces investigation after ousting, part of President Xi’s crackdown on party violations. “There are a lot of senior military officers we haven’t seen in a while,” notes Dennis Wilder, former CIA deputy assistant director for East Asia and the Pacific. Observers tally purge impacts on military operations and regional stability.

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