Dear Focus Reader,

China's annual Two Sessions wrapped up on March 11, with leaders emphasizing national unity and economic resilience under the banner of "Chinese-style modernization."On the economic front, job market concerns dominated discussions, with officials pledging to ease pressure amid rising youth unemployment and structural shifts in the labor market. And despite ongoing trade tensions with Washington, Premier Li Qiang assured that China's economy remains resilient to U.S. tariffs.

Climate policy, however, took a backseat. Premier Li's Government Work Report omitted a carbon intensity target altogether, with only a modest 3% energy intensity reduction goal. While China continues expanding renewables—non-fossil fuels accounted for nearly 40% of electricity generation last year—the absence of stronger climate commitments signals that economic growth remains the overriding priority for now.

While foreign policy was not a central focus, the sessions highlighted China's commitment to "inclusive economic globalization" and an "equal and orderly multipolar world." Leaders emphasized continued openness, with efforts to attract foreign investment, improve the business environment for international companies, and strengthen the quality of the Belt and Road Initiative.

AI emerged as a top agenda item, with China doubling down on AI-driven economic transformation. The debut of Manus, an AI agent likened to DeepSeek, reinforced China's ambitions in the global AI race. While not a major technological breakthrough, Manus's focus on usability reflects a shift toward mass adoption, raising new questions about data security and regulatory oversight.

Learn more on China policy by catching up on our latest Focus content, on topics including a potential Xi-Trump summit, clean energy, and more.