China's meteoric rise as a world power over the past few decades is a testament to the country's unique combination of governance, economic policy and social focus. As the world watches China usher in a new era, the importance of the country's people-centric approach cannot be overstated. At the heart of this model is a system of governance that is embodied in two annual meetings (Lianghui) where delegates from all walks of life come together to discuss, plan and implement the country's five-year plans. These assemblies of the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) not only serve a legislative function, but are also an important expression of China's democratic orientation - rooted in its commitment to its people.
In 2025, the 14th Five-Year Plan, a plan adopted by the Communist Party of China (CPC) to guide the country's development, will be the last year in China. This moment serves as an important point that reflects the country's impressive progress and sets its future path as it navigates the complexities of a rapidly changing global environment. A major theme of this year's two sessions that is increasingly coming to the fore is the consumer. In a world where global supply chains are often dictated by macroeconomic forces and trade wars, China's approach to consumer-centric economics has become both a model and a point for introspection.
Basic principle: people-oriented management
The essence of the Chinese governance model is a people-centred approach, where the needs of the people are prioritised in decision-making. Unlike many Western political systems, which often emphasise government-centred or top-down models, the Chinese system ensures that legislative processes are based on feedback from citizens. The two sessions are a prime example of this. Through the NPC and the CPPCC, representatives of China's vast population - including workers, intellectuals, businesspeople, and ethnic minorities - come together annually to engage in discussions that shape national policy. These delegates are charged with representing the voices of the people and ensuring that policy is responsive to the needs of the population.
This mechanism of deliberation and consensus building allows the government to make informed decisions that reflect the diversity of the country's population. It also ensures that the trajectory of the nation is shaped by collective input, creating a system of governance that promotes cooperation and integration at all levels. These assemblies are a fundamental aspect of the functioning of Chinese democracy, as they drive decisions that directly affect the lives of millions of people. Whether it is infrastructure development, social welfare or economic growth, the goal is always to serve the people.
A consumer-oriented economy: focusing on domestic demand
This year's two meetings have taken a significant step towards addressing one of the most pressing problems China is currently facing: sluggish domestic demand. For years, China's economy has been driven by massive exports, infrastructure growth and an emphasis on heavy industry. But with global economic changes such as trade tensions and geopolitical shifts, China has realized the need to strengthen its domestic consumer market.
A notable aspect of the 2025 negotiations was the focus on domestic consumption as a pillar of economic growth. The country's consumer market, once constrained by a thrifty and cautious population, is now crucial to sustaining long-term growth. The government recognised that financialisation and excessive credit, particularly in the real estate sector, had led to imbalances in the economy. As a result, policies have been introduced to stimulate demand, encourage spending and make the consumer central to economic development.
The role of the consumer as a driver of economic activity cannot be underestimated. China's population of 1.4 billion represents a large and diverse consumer base that has the potential to reshape the global economy. With rising disposable incomes and improving consumer confidence, domestic consumption will be a critical driver of future economic success. Indeed, recent measures have focused on increasing financial literacy, ensuring that consumers have access to fair credit options and protecting them from the risks of speculative bubbles that can undermine economic stability.
Promoting private enterprise and entrepreneurship
As China strives for a more balanced and sustainable economic model, supporting private enterprise and entrepreneurship was a major theme of this year's meetings. The Chinese government has long supported the state-owned enterprise sector, but in recent years it has become increasingly aware of the importance of a vibrant private sector. The government is seeking to reduce bureaucratic obstacles, streamline regulations and foster an environment conducive to innovation and entrepreneurship.
This shift is particularly important as China moves into an era of high-quality development. The private sector is expected to play a central role in driving technological innovation, creating jobs and providing goods and services that meet the changing demands of Chinese consumers. With government support, entrepreneurs have the opportunity to innovate, invest in emerging sectors such as artificial intelligence, clean energy and high-tech manufacturing, and contribute to the country's modernisation.
Sustainable growth and high-quality development
At the same time as focusing on domestic consumption and entrepreneurship, China's leadership is striving for high-quality development - an approach that integrates sustainability, innovation and inclusiveness. In the past year, China's economy continued to grow at a steady pace, with GDP increasing by 5 % and significant progress in sectors such as renewable energy, high-tech manufacturing and information technology. The emphasis on quality over quantity in economic growth is crucial as China transitions from rapid expansion to sustainable and balanced development.
This shift is evident in the country's growing commitment to environmental sustainability. Policies aimed at reducing carbon emissions, improving air quality and expanding renewable energy sources are central to China's strategy. For example, in 2024, China's energy consumption per unit of GDP fell by more than 3 %, while installed renewable energy capacity grew by an impressive 370 million kilowatts.t
China's new era: preparing for the future
As China continues on its path to modernization, the role of the CCP and its leadership will remain central. The strong and centralised leadership of the Party, led by Xi Jinping, ensures that the country will continue to move towards achieving its long-term goals. The success of the people-centred management model, as demonstrated by the two sessions, is key to understanding why China has been able to achieve such extraordinary growth.
The transformation of a country is not just about economic strength, but also about empowering its people. As China enters a new era, the lessons learned from the two sessions will guide the country in building a society that is not only prosperous but also just, sustainable and inclusive. With a continued focus on consumer demand, private enterprise and high-quality development, China is preparing for an even more influential role in the global order.
China owes much of its rise to world leadership to its commitment to people-centred management and a consumer-centred economy. The two annual meetings are an important reflection of this approach, ensuring that China's development remains in line with the needs of its people. As the country enters a new phase of transformation, it is poised to continue its rise and harness innovation, sustainability and consumer power to drive progress in the years ahead.
Kirtan Bhana - TDS/BFM
TDS/ gnews.cz - RoZ
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