A security guard watched at the opening ceremony of the National People’s Congress (NPC) held in the Beijing Hall on March 5, 2025.
Wang Zhao | AFP | Getty Images
Beijing – China’s Undercurrent This Annual Parliamentary Meeting Is it a U.S. trade tension? How Chinese technology offsets pressure.
This year, the etiquette gatherings held in Beijing this year were largely the result of a speech by U.S. President Donald Trump addressed Congress and imposed new tariffs on Chinese goods. This is a clear obstacle to exports, while Chinese companies only face stricter restrictions, namely access to high-end semiconductors and other advanced technologies.
According to the official Chinese English translation, “Internationally…in the fields of trade, science and technology, an increasingly complex and severe external environment may have a greater impact on China.”
It was an unusually grim assessment at least in the seven parliamentary meetings I attended. However, I also feel that there is a greater willingness to support the private sector than in the past, especially related to technological innovations, such as DeepSeek, a Chinese AI company.
“We will promote the healthy and well-regulated development of the platform economy and better play its role in inspiring innovation, expanding consumption and stabilizing employment,” Li said in his work report.
This marks the latest signal that Beijing now wants to support the private sector, after previously taking a more restrictive stance and imposing heavy fines on tech giants Alibaba and Tencent, often referred to as “platform” companies.
DeepSeek’s Recent Rise Show many international investors that they are cautious in growing in the economic slowdown, regardless of White House sanctions, how Chinese companies compete with the United States for AI.
Beijing quickly affirmed the success of the startup. Liang Wenfeng of DeepSeek attended a meeting with Li’s prime minister in January and held a seminar with Chinese President Xi Jinping in February.
AI opposes protectionism?
Although DeepSeek was not specifically mentioned in the government work report, members of the team that drafted the report’s naming and Kuaishou’s Kling AI application for video generation – while talking to the media on Wednesday about rapid AI development in China.
“Historically, technological advancements are often an important force in breaking barriers and protectionism,” Chen Changsheng, also deputy director of the State Council’s research office, said in a CNBC-translated Mandarin.
“We look forward to how AI will be a positive energy to promote cooperation and multilateralism in the current international context,” he said.
Hong Kong, China – January 28: In this photo illustration, the DeepSeek app is seen on the phone in front of the Chinese flag of Hong Kong, China on January 28, 2025.
Anthony Kwan | Getty Images News | Getty Images
According to the Chinese version, “Technology” mentioned 10 more mentions in this year’s report and last year’s report. Technical self-reliance also received its own subsection in China’s latest annual work report, compared with its death in 2024.
New law
China’s legislature has been discussing a new law to support the private sector. Beijing said it will be promulgated as soon as possible after further discussion and revision.
According to CNBC Translation of her Mandarin Review, Ding Wenjie, global capital investment strategist at Chinese asset management firm, said this year’s policy could be more bottom-up than top-down.
She expects AI and the growth that leads to technology have stimulated development in other industries, but warns that companies may not see results in just a quarter or two.
The Chinese parliamentary meeting officially ends early next week. More official comments on technology and private sector laws are expected to be spread in the coming days.
Prime Minister Li said one of the top priorities in the coming year is to support “widespread application of large-scale AI models.” Beijing plans to increase funding for biomanufacturing, quantum technology, AI-linked robotics technology and 6G technology.
This industry-specific goal is achieved when China tries to increase consumer spending, minimize real estate resistance and lead to trade tensions with the United States.
China’s chief Chinese economist Robin Xing and a team said in a report Wednesday that China’s policy focus is to accelerate AI adoption and autonomous driving while making progress in restructuring housing and (local government financing instruments) debt, Morgan Stanley’s chief Chinese economist Robin Xing and a team said in a report Wednesday. “They pointed out that the fiscal plan is as expected: 2 trillion yuan ($280 billion) expansion and moderate support in terms of consumption. ”
Comments by Chinese officials at this week’s meeting hinted at people’s preference for open source models.
Chen’s drafting team warned not to “overuse” private AI projects that could damage the market, but instead call for “large-scale applications.”
China will also work to improve computing power and develop “open source model systems,” the Economic Planning Bureau, known as the National Development and Reform Commission, said in the coming year.
