Key Takeways from China's Two Sessions

The 14th National People's Congress (NPC) and the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) concluded their 4th annual session in Beijing on March 12 and 11.

Here're the main documents adopted:

Outline of the 15th Five-Year Plan (2026-2030) for national economic and social development

The plan revolves around four pillars of national strategy:

⭐New Quality Productive Forces: The focus is on applying AI, quantum computing, and semiconductors across the entire manufacturing chain to ensure industrial self-reliance.

⭐Strengthening Domestic Demand: A pivot toward a “strong domestic market” to counter external volatility. This includes increasing the household consumption rate and building a National Unified Market to eliminate local protectionism.

⭐Common Prosperity: Addressing the “old and young” by raising rural pension benefits, increasing nursing-care beds to 73% in elderly institutions, and fostering a birth-friendly society.

⭐Coordinating Security and Development: Setting “bottom-line” targets for resource security, including a grain production capacity of 1.45 trillion jin and energy production of 5.8 billion tonnes of standard coal.

Major indicators are identified, including:

⭐Economic Growth: A flexible GDP growth target for 2026 has been set at 4.5% to 5%. Rather than a fixed five-year rate, annual targets will be adjusted to ensure per capita GDP doubles 2020 level by 2035.

⭐Innovation Intensity: R&D spending is projected to grow by at least 7% annually, maintaining the momentum of the previous plan.

⭐Digital Economy: The value-added of core digital economy industries is targeted to reach 12.5% of GDP

⭐Green Transition: A cumulative 17% reduction in CO2 emissions per unit of GDP by 2030.

⭐Livelihood: Average life expectancy is targeted to reach 80 years, and the average years of schooling for the working-age population will rise to 11.7 years.

109 major projects are proposed in six areas, based on a full consideration of their strategic value, guiding role and continuity:

⭐To steer the development of new quality productive forces, 28 projects are focused on enhancing China's foundational industrial capacity and industrial competitiveness, developing new industries and new arenas of growth, making breakthroughs in frontier science and technology, and bolstering foundational innovation capacity.

⭐To modernize the infrastructure system, 23 projects target the development of a national comprehensive and multidimensional transportation network, a new type of energy system, new types of infrastructure and platforms for opening up.

⭐To promote integrated urban-rural development, 9 projects are focused on new urbanization and agricultural and rural modernization.

⭐To ensure and improve public well-being, 25 projects are designed to foster a thriving socialist culture, build a high-quality education system, advance the Healthy China Initiative, and upgrade elderly care, childcare and social care services.

⭐To promote the green and low-carbon transition, 18 projects are proposed with the aim of achieving peak carbon emissions and carbon neutrality, improving the environment and promoting ecological conservation and restoration.

⭐To ensure security in key areas, 6 projects are centered on food and energy security.

2026 Government Work Report 

Update on China's trade statistics in Jan-Feb

China's foreign trade up 18.3% in Jan-Feb to 7.73 trillion yuan. Exports rose 19.2% to 4.62 trillion yuan, while imports increased 17.1% to 3.11 trillion yuan. Trade with the EU expanded 19.9% to 998.9 billion yuan. Private firms led growth with a 22.8% increase, while foreign-invested enterprises rose 15.3%. Mechanical and electrical product exports surged 24.3% to 2.89 trillion yuan, dominating outbound shipments. Imports of mechanical and electrical products grew 21.3% to 1.21 trillion yuan.

Ecological and Environmental Code

Second major code following the Civil Code, the Ecological and Environmental Code was adopted by the NPC. 

• At the domestic governance level

For a long time, China's ecological and environmental legal system has consisted of more than 30 separate laws, over 100 administrative regulations and more than 1 000 local regulations.

The code integrates existing regulations and constructs a scientific system of "five in one" – general provisions, pollution prevention and control, ecological protection, green and low-carbon development and legal liabilities, promoting a profound transformation of ecological and environmental governance from fragmentation to systematization, from siloed approaches to coordination and from end-of-pipe treatment to source prevention and control.

• At the global governance level  

The code fully aligns with the United Nations 2030 Sustainable Development Goals, systematically implements the requirements of the Paris Agreement, incorporates climate change mitigation and adaptation, nationally determined contributions, carbon market mechanisms and green technology innovation into the legal framework, and delivers China's carbon neutrality commitments through stable and predictable institutional arrangements, injecting certainty into the achievement of global climate governance goals.  

More importantly, the code has blazed a modern path of coordinated development and protection and clearly proposes to deepen international cooperation and build a global environmental governance system.

Click here to learn more.

Ethnic Unity and Progress Promotion Law

The Ethnic Unity and Progress Promotion Law, a fundamental law on ethnic affairs in China, will take effect on July 1, 2026.

The law dedicates chapters to fostering a shared sense of belonging for the Chinese nation, promoting interaction, exchange and integration, and advancing common prosperity and development among all ethnic groups.

Development in ethnic minority regions should not just rely on temporary assistance but also on sustained policy support guaranteed by the new law.

Specific provisions direct central and local governments to strengthen infrastructure, foster industrial growth, ensure better access to public services, and intensify efforts to protect the environment, among other measures.

The new law provides that the state shall promote the standard spoken and written Chinese language. The right to study and use ethnic minority languages shall also be respected and safeguarded, according to the law.

The new law stipulates that upholding national unity and ethnic solidarity is the responsibility of all Chinese citizens, and prohibits discrimination and suppression against any ethnic group.

It also combats violent terrorism, ethnic separatism and religious extremism, saying organizers, planners, perpetrators, instigators and funders of these activities may face criminal liability.

Quotes on the Two Sessions

Beyond the Headlines

Ambassador Cai Run: China’s 15th Five-Year Plan Opens a New Chapter of China-EU Cooperation

Regarding the prospects for the development of China-EU relations, Ambassador Cai emphasizes his confidence in the future of China-EU relations. In the face of an uncertain and turbulent international situation, China-EU relations carry greater strategic significance and global influence. Strengthening cooperation serves the fundamental and long-term interests of both sides. Many insightful figures in Europe generally believe that developing relations with China is an important measure for responding to external turbulence. As long as China and the EU remain true to the original intention of establishing diplomatic relations, uphold their partnership positioning, actively implement the important consensus reached by their leaders, seize opportunities, and respond to challenges, we will surely write a new and brillant chapter in China-EU relations, enabling each other to achieve mutual success and delivering benefits to the world.

Regarding European response to the 15th FYP, he shares his observations that many European friends appreciate China’s long-term planning capacity and efficient governance capability, believe that the plan will inject stability and certainty into the world and boost global confidence in development. There is a broad expectation that key policies, such as technological self-reliance, green transition, and digital development, which closely align with the EU's own strategic priorities, will open new opportunities for China-EU partnership.

Regarding the benefits the Plan brings to practical China-EU cooperation, he welcomes the EU side to share the opportunities brought by China’s high-quality development and high-level opening-up, indicating a pathway is provided for achieving China-EU trade rebalancing. The service sector will be a key focus of China’s future opening. The huge market of 1.4 billion people will continue to release demand in sectors such as healthcare, elderly care, and entertainment. The EU can leverage its strengths to expand the supply of high-quality products and services to the Chinese market.

Regarding the way to safeguard multilateralism, he emphasizes the great significance and relevance of the Global Governance Initiative and calls on the two sides to serve as defenders of multilateralism, practitioners of international rule of law, guardians of free trade, and advocates of solidarity and cooperation, to safeguard the international system with the United Nations at its core and the multilateral trading system with the WTO at its core in order to advance an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization.

(Read the full text here)

On the Iran issue

Over the past week, Foreign Minister Wang Yi had phone calls with his counterparts from Kuwait, Bahrain, Pakistan, Qatar and Egypt and once again called for peace, end to hostilities and deescalation.

FM Wang Yi pointed out that this is a war that should not have happened—it is a war that does no one any good. Without the UN’s authorization, the U.S. and Israel attacked Iran in the process of the ongoing U.S.-Iran negotiation, which clearly violates international law. The sovereignty, security and territorial integrity of all countries should be respected. China does not go along with attacks against countries in the Gulf region and condemns nondiscriminatory attacks against civilians or non-military targets.

🔵 The pressing priority now is to stop military operations at once and prevent the conflict from spreading.

🔵 The way out of the conflict is to return to dialogue and negotiation as soon as possible and strive for restoration of peace.

🔵 The fundamental solution is to jointly return to the right track of abiding by international law and basic norms of international relations.

Since the very first day of the conflict, China has unequivocally called for ceasefire, end of hostilities, return to dialogue and negotiation, and political settlement. As we speak, Special Envoy of the Chinese Government on the Middle East Issue is in the Middle East to carry out shuttle diplomacy. As a permanent member of the UN Security Council and sincere friend of Middle Eastern countries, China will stay committed to urging peace and defending justice and fairness. China will continue to strengthen communication with relevant parties, including parties to the conflict, and play a constructive role for deescalation and restoration of peace.

China's ongoing shuttle diplomacy 

The Special Envoy Zhai Jun of the Chinese Government on the Middle East Issue met separately with Secretary General of the GCC Jasem Mohamed Albudaiwi, Saudi FM Faisal bin Farhan Al Saud,  UAE Deputy PM & FM Sheikh Abdullah bin Zayed Al Nahyan and Bahrain's FM Abdullatif bin Rashid Al-Zayani. In push for deescalation.

Visual Highlights

🔹  March 12 is National Tree Planting Day in China. Green is Gold. Take a glance at a Green China from South to North, even in the desert.

Disclaimer: The views and opinions expressed in the newsletter are those of the authors and do not necessarily reflect the official policy or position of China, except those from the official website of the Chinese Foreign Ministry, Chinese Mission to the EU and other Chinese governmental websites.

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                                                                                   Editor: LIU Di