The government may introduce measures to boost consumption, such as raising the deficit ratio, but large-scale stimulus is unlikely. AI advancements, like the DeepSeek AI model, may also be highlighted. Additionally, a law to improve market conditions for private enterprises will be reviewed, reflecting the government's support for the private sector. President Xi Jinping has shown support for private businesses, recognizing their role in innovation and technological self-reliance. The defense budget for 2025 is also anticipated, following a 7.2% increase last year.
Key takeaways:
- China's legislature is focusing on artificial intelligence and economic issues during its annual session in Beijing.
- Premier Li Qiang is expected to announce an economic growth target of around 5% amid economic challenges.
- China has imposed additional tariffs on U.S. farm products in retaliation for increased U.S. tariffs on Chinese goods.
- The government is expected to introduce measures to boost consumption and support private enterprises.