Reading the tea leaves: Decoding China’s 2024 Two Sessions

China’s Two Sessions (Lianghui) refer to the annual plenary sessions of the country’s two major political bodies, the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC). During the Two Sessions this year, Chinese Premier Li Qiang delivered his first Government Work Report (the Report). The Report offers an economic blueprint that provides businesses and investors with first-hand insights into the thinking of China’s policymakers and their priorities for the coming year. This year’s Two Sessions have been closely watched for any signs of major government policy to support growth and navigate the ongoing economic transformation. The Report also offers a glimpse into China’s industrial policy that will have a significant bearing on both state and private investment.

In our China Economic Quarterly Q4 2023 (CEQ Q4), we analysed China’s economic data for 2023 and developed our views on China’s outlook for 2024 in the areas of GDP, the property sector, a pivot towards high-tech sectors, domestic consumption, as well as foreign trade and policy stimulus. The Report touched on most of these areas that we covered. In this review, we build upon our CEQ Q4 analysis to decode the key policy messages from this year’s Two Sessions.