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
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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".



North Korea Fires Missile Ahead of Major US-South Korea Drills

People watch a news broadcast on a television screen showing a report on a missile launch, at a railway station in Seoul, South Korea, 12 August 2026. (EPA)
People watch a news broadcast on a television screen showing a report on a missile launch, at a railway station in Seoul, South Korea, 12 August 2026. (EPA)
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North Korea Fires Missile Ahead of Major US-South Korea Drills

People watch a news broadcast on a television screen showing a report on a missile launch, at a railway station in Seoul, South Korea, 12 August 2026. (EPA)
People watch a news broadcast on a television screen showing a report on a missile launch, at a railway station in Seoul, South Korea, 12 August 2026. (EPA)

North Korea fired a ballistic missile on Wednesday toward the sea off the Korean peninsula's east coast, South Korean and Japanese authorities said, days ahead of major joint military exercises by Seoul and Washington long denounced by Pyongyang.

The missile was launched from the North's Wonsan area at about 6 a.m. (2100 GMT Tuesday), South Korea's Joint Chiefs of Staff (JCS) said, six days after North Korea fired another ballistic missile from the same area.

The launch came ahead of South Korean and US military drills, dubbed Ulchi Freedom Shield, set to run from August 17 to August 27, aimed at countering Pyongyang's evolving nuclear and weapons capabilities.

Hong Min, a senior researcher at the Korea Institute for National Unification in Seoul, said the launch ‌was likely part of ‌North Korea's existing weapons development schedule, but the timing could also have been ‌selected ⁠to send a ⁠message ahead of the exercises.

"Even if it was a test of a weapon under development, choosing when to conduct it requires a political decision," Hong said.

There was no immediate statement from North Korea on the Wonsan launch, but Pyongyang on Wednesday afternoon criticized the nuclear ambitions of South Korea and Japan.

South Korea said North Korea also fired a ballistic missile from Wonsan on August 6, but Pyongyang did not report that launch in state media. Hong said that test may have failed to achieve its intended objective.

North Korea's series of tests this year has featured short-range ballistic missiles, artillery rockets and other tactical weapons.

Wednesday's ⁠launch was its 11th suspected ballistic missile test in 2026, according to South Korean ‌assessments.

South Korean and Japanese defense authorities said the missile flew about 700 ‌km (435 miles).

Seoul's Joint Chiefs of Staff did not identify it as a short-range ballistic missile, saying authorities would conduct a detailed ‌analysis.

The omission leaves open the question of what type of missile it was, analysts said. Ballistic missiles with ‌ranges of 300 km to 1,000 km (186 miles to 620 miles) are generally classified as short-range.

Hong said the range, trajectory and launch site suggested it may have been a type of hypersonic missile, though a submarine-launched missile was also possible.

CONDEMNATION AND HEIGHTENED TENSIONS

South Korea and Japan both condemned the launch.

"Japan lodged a strong protest with North Korea through diplomatic channels at the Japanese Embassy ‌in Beijing and strongly condemned the action," Japanese Defense Minister Shinjiro Koizumi told reporters.

South Korea's Office of National Security convened an emergency meeting and expressed concern over North Korea's continued ⁠ballistic-missile launches following the ⁠August 6 firing. It urged Pyongyang to halt provocations that violate UN Security Council resolutions.

South Korea's military said it was maintaining readiness to respond "overwhelmingly" to any provocation under its combined defense posture with the United States.

The US Indo-Pacific Command said it was consulting closely with allies and partners, adding that its initial assessment was that the launch posed no immediate threat to US personnel or territory, or to its allies.

On Tuesday, Ukrainian President Volodymyr Zelenskiy said Moscow used North Korean ballistic missiles during a Russian attack that killed seven workers at a steel plant in the southeastern city of Zaporizhzhia.

In a statement, a North Korean Foreign Ministry official responsible for South Korean affairs said Seoul's plans to develop nuclear-powered submarines would heighten instability in the region, for a "serious challenge" to the North's security.

Pyongyang needed the capability to counter its adversaries' military moves with retaliatory strikes that would make their "survival and recovery impossible", the statement added.

In a separate commentary state news agency KCNA accused Japan of seeking nuclear weapons under the guise of peaceful use of atomic energy, citing its nuclear power program and debate among Japanese politicians over nuclear armament.


Four Killed in Russia-Ukraine Strikes, Including 8-Year-Old

A handout picture made available by the press service of the 93rd Separate Mechanized Brigade of the Ukrainian Armed Forces shows a civilian car in a crater on a bridge in the frontline city of Druzhkivka in the Donetsk region, Ukraine, 11 August 2026, amid the ongoing Russian invasion. (EPA/Press service of the 93rd Separate Mechanized Brigade/Handout)
A handout picture made available by the press service of the 93rd Separate Mechanized Brigade of the Ukrainian Armed Forces shows a civilian car in a crater on a bridge in the frontline city of Druzhkivka in the Donetsk region, Ukraine, 11 August 2026, amid the ongoing Russian invasion. (EPA/Press service of the 93rd Separate Mechanized Brigade/Handout)
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Four Killed in Russia-Ukraine Strikes, Including 8-Year-Old

A handout picture made available by the press service of the 93rd Separate Mechanized Brigade of the Ukrainian Armed Forces shows a civilian car in a crater on a bridge in the frontline city of Druzhkivka in the Donetsk region, Ukraine, 11 August 2026, amid the ongoing Russian invasion. (EPA/Press service of the 93rd Separate Mechanized Brigade/Handout)
A handout picture made available by the press service of the 93rd Separate Mechanized Brigade of the Ukrainian Armed Forces shows a civilian car in a crater on a bridge in the frontline city of Druzhkivka in the Donetsk region, Ukraine, 11 August 2026, amid the ongoing Russian invasion. (EPA/Press service of the 93rd Separate Mechanized Brigade/Handout)

Ukrainian drone strikes on Russia's south killed two people, including an eight-year-old child, the regional governor said on Wednesday after the latest exchange of air attacks between the warring countries.

Russian overnight strikes on a frontline city in southern Ukraine also killed two.

Ukraine has increased its strikes on Russia in what it says is fair retribution for Moscow's own daily strikes on Ukrainian cities that force people into shelters and kill civilians across the country.

Russia's Krasnodar -- a southern region home to several tourist hotspots -- saw a barrage of "several hundred" Ukrainian drones, regional governor Venyamin Kondratyev said.

"An eight-year-old child died in Novorossiysk... Eight people, including one child, were also wounded and have been hospitalized," Kondratyev said on Telegram.

He added that debris from drones damaged 21 buildings in the port city, with unverified images on social media showing blocks of flats with blown-out windows and charred cars.

Ukrainian President Volodymyr Zelensky said that Kyiv had "carried out a unique operation targeting the naval base in Novorossiysk -- the last major stronghold of the Russian fleet in the Black Sea, more than 300 kilometers from the front line."

"Hits on air defense positions, piers, and seaport infrastructure have been confirmed," he said on social media.

He posted a video from Russian social media showing the attack unfolding -- streaks of orange flashes of air defense and blue counter-drone laser beams being shone into the sky -- and a thick grey cloud billowing over the city after dawn.

Another person was killed in the Krasnodar region when drone debris fell into the garden of a private house in the village of Volna.

Two people were also wounded in the resort town of Gelendzhik on the Black Sea coast.

Russia shot down 502 Ukrainian drones across its territory and the Black Sea overnight, its defense ministry said in a statement.

Ukraine's air force meanwhile reported Moscow attacked with missiles and 138 drones, 112 of which were shot down or intercepted, launched mostly at its southern Odesa region and Sumy in the northeast.

Russian drones killed two people in the frontline city of Kherson in southern Ukraine, the city chief said, including a woman whose house was hit.

Civilians are frequently killed in the city, with Russian troops based on the opposite side of the Dnipro River, which snakes through southern Ukraine.


Typhoon Dolphin’s Remnants Brings Torrential Rain to Beijing

Communal workers sweep water in the street after morning flood caused by flash rain in the wake of typhoon Dolphin, in Changping district of Beijing, China, August 12, 2026. (Reuters)
Communal workers sweep water in the street after morning flood caused by flash rain in the wake of typhoon Dolphin, in Changping district of Beijing, China, August 12, 2026. (Reuters)
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Typhoon Dolphin’s Remnants Brings Torrential Rain to Beijing

Communal workers sweep water in the street after morning flood caused by flash rain in the wake of typhoon Dolphin, in Changping district of Beijing, China, August 12, 2026. (Reuters)
Communal workers sweep water in the street after morning flood caused by flash rain in the wake of typhoon Dolphin, in Changping district of Beijing, China, August 12, 2026. (Reuters)

Typhoon Dolphin's ‌remnants channeled vast amounts of moisture into Beijing and the central province of Henan on Wednesday, as the capital braced to receive more than one-third of its average annual rainfall in 24 hours.

Dolphin, the strongest typhoon to hit China this year, has weakened after travelling more than 6,000 km (3,728 miles), but its remnants are drawing ‌tropical moisture ‌deep inland, raising the risk of ‌flooding.

Rainfall ⁠records were shattered ⁠in parts of the central provinces of Henan and Hubei on Monday and Tuesday, state media reported.

The city of Wugang, home to one of China's largest steel companies, received 209.5 mm (8.2 inches) of ⁠rain, while Xiangyang received 169.1 mm (6.6 ‌inches). Both totals ‌broke single-day August precipitation records.

China, the world's second-largest ‌economy, is increasingly exposed to destructive weather ‌events that scientists link to climate change. This year is proving particularly tough due to the emergence of the El Nino weather pattern ‌that is driving up temperatures and fueling more frequent and intense typhoons.

Beijing ⁠has ⁠put in place an orange rainstorm warning, its second-highest level, and suspended six bus routes as the deluge disrupted the morning rush hour.

Chinese meteorologists are reaching for a new generation of artificial intelligence weather models to bolster traditional forecasting systems to improve the country's resilience to extreme weather.

Each year, extreme rainfall causes billions of dollars in economic losses as manufacturing is disrupted and crops are washed away.