China’s National People’s Congress (NPC) marks a key turning point, concluding the 14th Five-Year Plan and laying the foundation for the 15th. Amid economic challenges and evolving geopolitical landscapes, Beijing is emphasising domestic development, technological progress and global engagement. Meanwhile, with the U.S. pulling back under Trump’s “America First” policy, China is leveraging the opportunity to strengthen trade ties, reinforce military capabilities and expand its influence across the Global South.
By Keoni Everington, Taipei, Taiwan & China Correspondent, The News Analytics Journal
a 5 mins read.
Amid China’s economic downturn and dim prospects for growth, this year’s National People’s Congress (NPC) concludes the 14th Five-Year Plan and paves the way for the 15th. The meeting will influence the direction of the CCP’s 21st National Congress and provide insights into China’s policy adjustments in response to Trump’s return.
The government work report presented by Chinese Premier Li Qiang on the opening day of the NPC on March 5, 2025, characterised the current situation as “mounting external pressures and growing domestic difficulties,” with the former alluding to the new Trump administration’s tariffs. He acknowledged that “sluggish domestic demand was compounded by weak public expectation” along with other issues such as natural disasters.
Li said that China’s overall budget in 2025 would be 29.7 trillion yuan, an increase of 1.2 trillion yuan from the previous year. He said new government debt would increase to 11.86 trillion yuan, and rise of 2.9% from the previous year, “enabling a notably higher level of spending.”
Li announced that China will boost defence spending by 7.2% to soar to 1.78 trillion Chinese yuan this year, second only to the U.S. Li also stated that Beijing will “firmly advance the cause of China’s reunification” and work with “fellow Chinese” in Taiwan to advance unification.
China’s economic strategy prioritises domestic consumption and technological innovation while increasing defence spending. The government aims to counter U.S. tariffs and maintain stability amid external pressures.
U.S. RETREAT, CHINA ADVANCES
The Mainland Affairs Council that same day called on Beijing to “exercise rational self-restraint,” engage in dialogue with Taiwan’s democratically elected government to resolve differences and take responsibility for maintaining peace and stability in the region. It also urged Beijing to avoid “provocative military actions that harm all parties.”
To meet the coming year’s target of 5% GDP growth, Wang Hsin-hsien, acting director of the Institute of International Relations at National Chengchi University, on 6th March said Beijing’s economic focus is on boosting domestic demand and technological development, while national security remains the core priority.
Diplomatically, Wang said China is pursuing a “U.S. retreat, China advances” strategy, using multilateral cooperation to counter the U.S. On Taiwan policy, the status quo remains unchanged, predicted Wang.
Wang said the absence of a commemoration for the 20th anniversary of the Anti-Secession Law reflects the uncertainty in the U.S.-China relationship. Wang emphasised that, in the face of “Trump 2.0,” China is using a “divide and conquer” strategy, employing “international united front” and “international guerrilla warfare” tactics to counter the U.S.
Vice Chair of the Mainland Affairs Council, Shen You-chung, on March 11 said the new economic growth target raises the budget deficit ratio to 4% and sharply increases government debt by 2.9 trillion Chinese yuan, a 32.4% rise compared to last year. Shen said the consumer price index has been revised down to 2%, indicating continued deflationary pressures.
Shen said these policy measures, including increased debt, are likely aimed at stimulating consumption to boost the declining economy. In response to the intensifying U.S.-China competition, the Chinese Communist Party (CCP) is attempting to mobilise resources to alleviate various risks such as the real estate market, local government debt, financial institutions and social governance, said Shen.
Shen noted that while internal economic pressures within China have not eased, defence spending and public security expenditures have both exceeded the 5% GDP growth target. Shen said this highlights the CCP’s continued efforts to strengthen the national security and political-legal systems, reinforcing its power through the military and raising concerns among neighbouring and global democratic countries.
When asked on March 7 whether Trump’s “America First” policy presents an opportunity for Beijing, Chinese Foreign Minister Wang Yi said that under such policy the “law of the jungle” would reign again. Wang said that big countries should honour their international obligations and not wield their power to “bully the weak.”
TAIWAN’S STANCE
Wang said that over 100 countries support China’s Global Development Initiative, Global Security Initiative and Global Civilisation Initiative. Also more than three-quarters of countries have signed on to the Belt and Road Initiative. Wang argued that “History will prove that a real winner is the one that keeps in mind the interests of all.”
Regarding Taiwan, Wang said that the United Nations General Assembly Resolution 2758 “Once and for all, this resolution resolved the issue of the representation of the whole of China, including Taiwan, in the U.N.” He also claimed that the “only reference to the Taiwan region in the UN is ‘Taiwan, Province of China.’”
However, Taiwan’s Ministry of Foreign Affairs condemned this “renewed and blatant attempt to unilaterally disrupt the status quo and this malicious conduct aimed at deceiving and misleading the international community.” The ministry pointed out that the resolution does not make any mention of Taiwan in its text, nor does it authorise Beijing to represent Taiwan or the Taiwanese people at the UN.
Simon Teng-Chi Chang, professor of Political Science at National Taiwan University, said that “major-country diplomacy with Chinese characteristics” reflects China’s position as a socialist developing country in the Global South. Chang noted that the work report did not mention “responsible major country” or “promoting the common values of humanity,” indicating that Beijing may be shifting its focus from maintaining the status quo to emphasising power balance and international system reforms.
Although the term “Global South” was not explicitly mentioned, Chang said changes in the prioritisation of diplomatic events in the report indicate an increase in importance being placed on engagements with Global South countries. Chang said the report also emphasised an “orderly multipolar world,” signalling China’s desire to actively shape the global order, which aligns with the potential formation of a new “Yalta System.”
Chang said that in the context of Trump possibly reshaping the global landscape, Beijing is strengthening its cooperation with the Global South, enhancing power balance and solidifying China-Russia relations to respond to changes in the international environment.
Beijing’s diplomatic efforts emphasise fostering stronger alliances within BRICS and the Global South. As the U.S. withdraws, China capitalises on filling the void in international leadership.
CHINA’S DIPLOMATIC EDGE
Li’s government work report did not mention India but emphasised that Beijing made progress in carrying out major-country diplomacy with Chinese characteristics. Li pointed out that Chinese leader Xi Jinping and other CCP party and state officials attended multilateral events India participated in such as the Astana Summit of the Shanghai Cooperation, the 16th BRICS Summit and the 19th G20 Summit, as Beijing stayed committed to “true multilateralism.”
The NPC Standing Committee work report also did not mention India directly, but it did state that it sent delegations to the BRICS Parliamentary forum among other multilateral parliamentary events New Delhi attended. The report stated that during these meetings, the committee members “fostered consensus among legislative bodies of participating countries to advance BRICS Plus cooperation to build solidarity and self-reliance within the Global South.”
The NPC’s plan for this year could not contrast more with the US Congress’ stopgap funding measure. China has outlined comprehensive plans to stimulate domestic consumption, increase trade, counteract Trump’s tariffs, push technological innovation and boost military might.
Meanwhile, Congress’ slapdash bill only funds the government for six months and hands more disproportionately discretionary powers to Trump as he allows Elon Musk’s DOGE operation to dismantle the US government. Major US rivals to China’s BRI such as USAID have been destroyed and likewise, US media outlets such as Voice of America and Radio Free Asia, open the floodgates for Chinese state-run media.
While Trump employs a highly punitive approach to global trade, China has the opportunity to establish much more trade ties on more favourable terms with those countries targeted by the tariffs. Organisations abandoned by Trump only present a golden opportunity for China to fill the void.
(Keoni Everington is an American senior journalist based in Taipei, Taiwan with 15 years of experience covering news about Taiwan and China. Everington specialises in subjects such as cross-strait relations, US-Taiwan ties and international geopolitics. The views expressed by the author and any guest experts do not necessarily reflect the views of The News Analytics Journal.)
