China's Leaders Gather for Key Strategy Session as Challenges Grow

Beijing this week will host China's carefully orchestrated annual strategy meetings known as "Two Sessions". Pedro PARDO / AFP
Beijing this week will host China's carefully orchestrated annual strategy meetings known as "Two Sessions". Pedro PARDO / AFP
TT

China's Leaders Gather for Key Strategy Session as Challenges Grow

Beijing this week will host China's carefully orchestrated annual strategy meetings known as "Two Sessions". Pedro PARDO / AFP
Beijing this week will host China's carefully orchestrated annual strategy meetings known as "Two Sessions". Pedro PARDO / AFP

China's leaders are set to unveil strategies to confront challenges that include sluggish consumption, a shrinking population and shifting geopolitical landscapes when they gather in Beijing this week for the annual Two Sessions political meeting.

Thousands of delegates from across China will convene for a carefully orchestrated affair in Beijing's Great Hall of the People, largely to rubber-stamp decisions by the ruling Communist Party under leader Xi Jinping.

The nation's 15th Five-Year Plan -- a blueprint for the world's second-largest economy through to 2030 -- will also be released.

With most of the decisions already made, the Two Sessions are mainly a talking shop with little room for spontaneity or off-the-cuff comments.

However, they do provide a rare glimpse into the party's priorities on matters ranging from the economy to defense and foreign policy.

This year's gathering begins on Wednesday with the start of the Chinese People's Political Consultative Conference, a political advisory body.

It is generally overshadowed by the next day's opening of the National People's Congress, China's parliament, at which Premier Li Qiang will outline key growth targets.

China's economy expanded by five percent in 2025, in line with Beijing's target but one of the slowest rates in decades.

Analysts expect this year's target to be set even lower -- between 4.5 and five percent -- with 14 provinces reducing their GDP targets in recent weeks compared to 2025.

China's leaders say the country's economic model must shift towards consumption-based growth, rather than traditional drivers, including production and exports.

But factors such as the flagging property market, deflation and youth unemployment have left consumers tightening their purse strings.

Over-production spurred by state support and low demand, as well as international trade tensions, have also loomed over industrial output.

- 'Double down' -

Beijing's five-year plan for 2026-2030 will aim to address such issues, with officials vowing it will "create new demand through new supply and provide strong innovative measures".

Analysts, however, are skeptical.

"The thrust of it is to double down on the direction of travel Xi had already set," Steve Tsang, director of the SOAS China Institute, told AFP.

Expected measures are "unlikely to address the fundamental problem behind weak private consumption", he said.

The plan is expected to concentrate on high-tech manufacturing, green transition and supply chain resilience.

"This signals a shift away from debt-fueled expansion toward innovation-led growth", as well a response to trade tensions and global uncertainty, said Sarah Tan of Moody's Analytics.

However, strengthening social safety nets and boosting incomes, as well as addressing the long-running property crisis, would lead to "a more durable revival", she said.

- Priorities and credibility -

China is also facing serious demographic challenges: its population has shrunk for three years in a row.

Top leaders have pledged more childcare relief, including subsidies of around $500 per year for every child under the age of three -- but the measures so far have done little to boost births.

The Two Sessions is tightly controlled, but delegates in the past have used the opportunity to try to push pet policies, particularly social measures.

But when the "overarching objective politically is security... there's no desire to be innovative", former US defense official Drew Thompson said.

"So they're kind of stuck."

China's defense budget will also be announced, with the military reeling from a deep and long-running anti-corruption campaign.

The announcement in January that top general Zhang Youxia was under investigation sent shockwaves through defense observers, who saw it as a consolidation of power in Xi's hands.

However, the saga is not expected to feature heavily at the Two Sessions, according to SOAS' Tsang.

Ultimately, delegates are trying to turn the tide of low public confidence, analysts noted.

"There are some serious societal challenges that the party has to adapt to and the tools they're using are pretty traditional ones," Thompson said.

Tan from Moody's Analytics added that "credibility will rest on whether structural reforms, meaningful support for households and sustained fiscal backing follow the rhetoric".



Mojtaba Khamenei Says Closure of Strait of Hormuz Should be Used as 'Leverage'

(FILES) In this picture obtained from Iran's ISNA news agency, Mojtaba Khamenei (C), son of Iran's supreme leader Ayatollah Ali Khamenei, walks along a street in Tehran on May 31, 2019. (Photo by Hamid FOROUTAN / ISNA / AFP)
(FILES) In this picture obtained from Iran's ISNA news agency, Mojtaba Khamenei (C), son of Iran's supreme leader Ayatollah Ali Khamenei, walks along a street in Tehran on May 31, 2019. (Photo by Hamid FOROUTAN / ISNA / AFP)
TT

Mojtaba Khamenei Says Closure of Strait of Hormuz Should be Used as 'Leverage'

(FILES) In this picture obtained from Iran's ISNA news agency, Mojtaba Khamenei (C), son of Iran's supreme leader Ayatollah Ali Khamenei, walks along a street in Tehran on May 31, 2019. (Photo by Hamid FOROUTAN / ISNA / AFP)
(FILES) In this picture obtained from Iran's ISNA news agency, Mojtaba Khamenei (C), son of Iran's supreme leader Ayatollah Ali Khamenei, walks along a street in Tehran on May 31, 2019. (Photo by Hamid FOROUTAN / ISNA / AFP)

Iran’s Supreme Leader Mojtaba Khamenei issued his first statement on the war on Thursday, saying that the leverage of closing the Strait of Hormuz should be used.

Khamenei called on people in Gulf countries to “shut down” US bases, saying promised US protection is “nothing more than a lie.”

Khamenei did not appear on camera. Israeli intelligence assessed that he was likely wounded in the war’s opening salvo, which he said also killed his wife, one of his sisters, his niece and his father, Supreme Leader Ali Khamenei.

US President Donald Trump has promised to “finish the job,” even as Iran is “virtually destroyed.” The first week of the war cost the United States $11.3 billion, according to the Pentagon.

“One point I must emphasize is that, in any case, we will obtain compensation from the enemy,” Khamenei said.

“If it refuses, we will take from its assets to the extent we deem appropriate, and if that is not possible, we will destroy its assets to the same extent.”

 

 

 

 


Russia Condemns Trump Comments on 'Takeover' of Cuba

US President Donald Trump greets Russian President Vladimir Putin, Aug. 15, 2025, at Joint Base Elmendorf-Richardson, Alaska. (AP Photo/Julia Demaree Nikhinson, File)
US President Donald Trump greets Russian President Vladimir Putin, Aug. 15, 2025, at Joint Base Elmendorf-Richardson, Alaska. (AP Photo/Julia Demaree Nikhinson, File)
TT

Russia Condemns Trump Comments on 'Takeover' of Cuba

US President Donald Trump greets Russian President Vladimir Putin, Aug. 15, 2025, at Joint Base Elmendorf-Richardson, Alaska. (AP Photo/Julia Demaree Nikhinson, File)
US President Donald Trump greets Russian President Vladimir Putin, Aug. 15, 2025, at Joint Base Elmendorf-Richardson, Alaska. (AP Photo/Julia Demaree Nikhinson, File)

Russia condemned on Thursday what it called blackmail and threats by US President Donald Trump to initiate a "takeover" of Cuba, a traditional ally of Moscow.

Russian Foreign Ministry spokeswoman Maria Zakharova said Moscow would provide all possible political and diplomatic support to Cuba and called for a diplomatic solution to the tensions with Washington, Reuters reported.

Trump said on Monday that Cuba was in "deep trouble" and that US Secretary of State Marco Rubio was dealing with the issue, which may or may not be a "friendly takeover."


Trump Says Stopping a Nuclear Iran More Important than Oil Prices

US President Donald Trump talks to the media upon his arrival at Joint Base Andrews, Maryland, US, March 11, 2026.  REUTERS/Kevin Lamarque
US President Donald Trump talks to the media upon his arrival at Joint Base Andrews, Maryland, US, March 11, 2026. REUTERS/Kevin Lamarque
TT

Trump Says Stopping a Nuclear Iran More Important than Oil Prices

US President Donald Trump talks to the media upon his arrival at Joint Base Andrews, Maryland, US, March 11, 2026.  REUTERS/Kevin Lamarque
US President Donald Trump talks to the media upon his arrival at Joint Base Andrews, Maryland, US, March 11, 2026. REUTERS/Kevin Lamarque

US President Donald Trump on Thursday said that stopping Iran from getting nuclear weapons was more important to him than controlling oil prices, Reuters reported.

"The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money. BUT, of far greater interest and importance to me, as President, is stopping an evil Empire, Iran, from having Nuclear Weapons, and destroying the Middle East and, indeed, the World," said Trump in a post on his Truth Social platform.