Must-Read China Economic News (March 7-13)
The annual "two sessions", full text of government work report, AI and real estate, trade tensions with U.S. and Canada -- take a look at the latest newsworthy things in China.
Greetings and welcome to the latest edition of Peking Ensight! We're thrilled to have you join us once again as we navigate the ever-evolving landscape of the Chinese economy.
⭐Under the Spotlight
Annual two sessions conclude, outlining key growth target
The 14th National People's Congress (NPC), China's top legislature, concluded its third session on March 11.
Chinese President Xi Jinping and other leaders including Li Qiang, Wang Huning, Cai Qi, Ding Xuexiang, Li Xi and Han Zheng attended the closing meeting of the session at the Great Hall of the People in Beijing.
Lawmakers approved the government work report, whose full text can be accessed here. They also adopted a decision to amend the Law on Deputies to the National People's Congress and to the Local People's Congresses at Various Levels. President Xi signed a presidential order to promulgate the decision.
China has set an economic growth target of around 5 percent for 2025, according to the government work report, which has also outlined an array of other key development goals, including a surveyed urban unemployment rate of around 5.5 percent, over 12 million new urban jobs, and an around 2 percent increase in the consumer price index.
The Chinese People's Political Consultative Conference (CPPCC) National Committee, China's top political advisory body, concluded its annual session on March 9, calling on political advisors to contribute to great unity and solidarity and pool strength for advancing Chinese modernization.
China vows to resolutely stabilize real estate market
China will resolutely restore stability in the real estate market, with efforts to provide strong financing support for eligible housing projects and ensure timely delivery of homes to buyers, Minister of Housing and Urban-Rural Development Ni Hong said at a press conference on March 9.
While the government rolled out a mix of policies to prop up the sector, more work will be done this year to consolidate the effects of related measures, including interest rate cuts, lending support and tax reductions, Ni said on the sidelines of the third session of the 14th NPC.
The ministry will expand a "white list" mechanism to ensure loans for property projects, and accelerate the renovation of urban villages and dilapidated housing, Ni said.
He noted that reforms of fundamental mechanisms in real estate development, financing and sales will be pushed forward to build a new development model for the sector.
AI in spotlight at "two sessions"
Riding on the global fanfare over Chinese tech startup DeepSeek, artificial intelligence (AI) has unsurprisingly become a buzzword at China's just-concluded "two sessions," as observers eagerly watch how it will fit into the nation's rejuvenation drive.
DeepSeek and AI have been frequently mentioned in discussions and at press conferences of the annual sessions of the NPC and the National Committee of the CPPCC.
"In recent days, if people fail to mention DeepSeek, they will seem not to catch up with the trend," Wu Qing, chairman of the China Securities Regulatory Commission, said at a press conference on the sidelines of the "two sessions," noting DeepSeek's contribution to the recent re-evaluation of Chinese assets.
According to the government work report, China will foster the growth of industries including embodied AI, and support the extensive application of large-scale AI models.
It is the first time that "embodied AI," or AI with a physical form such as a robot, and "large-scale AI models," represented by DeepSeek, have made it into the annual report.
⭐Trade tensions with Canada, U.S.
China to impose additional tariffs on some Canadian products after anti-discrimination probe
China announced on March 8 that it would impose additional tariffs on some products imported from Canada based on the ruling of an anti-discrimination probe.
Effective from March 20, an additional 100-percent tariff will be imposed on imported rapeseed oil, oil cakes, and peas originating from Canada, while aquatic products and pork will be subject to an additional 25-percent tariff.
The decision comes after China's first anti-discrimination probe into foreign countries and regions, which found that Canada's restrictive measures on certain Chinese products have constituted discriminatory restrictions that disrupt normal trade order and harm the legitimate rights and interests of Chinese enterprises.
Last year, Canada announced tariff hikes on electric vehicles and steel and aluminum products imported from China, prompting the Chinese side to initiate an anti-discrimination probe in September.
Commenting on Canada's restrictive measures, China expressed strong dissatisfaction and resolute opposition, stating that such measures disregard facts and World Trade Organization rules, harm bilateral economic and trade ties, and exemplify protectionism.
"China's use of new investigative tools demonstrates the country's determination to take all necessary measures to safeguard national interests as well as legitimate rights and interests of industries," said Zhou Xiaoyan, executive vice president and secretary-general of the China Council for International Investment Promotion.
Chinese textile trade group calls for fair, reasonable solutions to international trade issues
A Chinese textile trade group on March 12 called on major U.S. retailers to address international trade issues fairly and reasonably.
The China Chamber of Commerce for Import and Export of Textiles made the remarks after it received complaints from members that certain U.S. retailers were pressing Chinese suppliers to cut prices.
The chamber said it is verifying these claims and will take action to protect its members' legitimate interests if the situation is confirmed.
Attributing issues currently arising in international trade to the unilateral tariff hikes imposed by the U.S. government, the chamber said Chinese and American businesses are all victims of these policies.
"We hope companies from both countries can resolve shared concerns through friendly consultations and mutually beneficial solutions, and work together to deal with current difficulties while avoiding using market dominance unilaterally to disrupt supply chain stability," it said in a statement.
⭐Key Macroeconomic Indicators
China's foreign trade records steady performances in first two months
China's foreign trade recorded steady performances in the first two months of 2025, with total goods trade volume reaching 6.54 trillion yuan (about 912.07 billion U.S. dollars), data from the General Administration of Customs showed on March 7.
This represents a moderate decrease of 1.2 percent from a year earlier, the data showed. After excluding the impact of incomparable factors, China's total goods imports and exports grew by 1.7 percent year on year.
Exports rose 3.4 percent from the same period last year to reach 3.88 trillion yuan, while imports went down 7.3 percent year on year, according to the data.
China's CPI edges down in February due to holiday effects
The decline in China's consumer prices in February was mainly driven by the effects of the Spring Festival holiday and fluctuations in global commodity prices, the National Bureau of Statistics (NBS) said on March 9.
China's consumer price index (CPI), a main gauge of inflation, was down 0.7 percent year on year in February, the National Bureau of Statistics (NBS) said.
From January to February, on average, the national consumer price decreased 0.1 percent over the same period last year.
On a monthly basis, the CPI dropped 0.2 percent in February, the NBS data showed.
NBS statistician Dong Lijuan said that the year-on-year CPI decline in February was primarily due to a higher base in the same month last year. Last February, food and service prices increased significantly during the traditional Spring Festival holiday, creating a high base effect that contributed to this year's decline.
Compiled by Jiang X