The annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Conference National Committee marked a pivotal moment. China is gearing up for the critical juncture of 2025 — a year that not only caps off the ambitious targets of the 14th Five-Year Plan (2021-25) but also sets some robust groundwork for the forthcoming 15th Five-Year Plan (2026-30).

In a significant step forward, Premier Li Qiang unveiled a comprehensive roster of initiatives aimed at economic revitalization during the third session of the 14th NPC. These include a shift toward a more proactive fiscal stance and improved policy synergy to stimulate growth. This was also the first time that the Government Work Report underscored Hong Kong’s importance in galvanizing international exchanges and collaboration, a move reflective of its burgeoning significance against a backdrop of global economic uncertainties and escalating geopolitical tensions.

The city’s enhanced role is now in the spotlight, and it is recognized as a key contributor to China’s overarching development strategy.

In 2025, it is crucial that the central government has a clear road map for the upcoming five years between 2026-30.

As highlighted in the Government Work Report, the central government is set to formulate the 15th Five-Year Plan, listing development targets and planning for strategic policies, tasks and measures.

Officials at all levels have committed to outwit geopolitical tensions and steer through volatile global markets. Indeed, the central government has mapped out a path toward Chinese modernization through wielding new quality productive forces for a top-notch socialist market economy by 2035.

The State has strived to enhance policy coordination between fiscal, monetary, employment, industries, trade and other policies to sustain national economic growth.

Li stated that all policies are well-aligned with the nation’s reform and opening-up measures to create greater synergy in economic development.

China’s National Bureau of Statistics revealed that the nation’s GDP surged by around 5 percent to 134.9 trillion yuan ($18.66 trillion) last year, contributing around 30 percent to global economic growth.

China will focus on developing new quality productive forces, establishing a mechanism to boost industries, such as biomanufacturing, quantum technology, artificial intelligence, and 6G technology. Chinese AI enterprise DeepSeek’s achievement exemplified the country’s superlative approach to innovation.

The central government has worked to combine digital technologies with manufacturing and market strengths under the “AI Plus” initiative. It will support the extensive application of large-scale AI models and develop intelligent connected new-energy vehicles, AI-enabled phones and computers, and intelligent robots. Apart from AI, China’s new energy vehicle sales around the world hit a record 13 million units in 2024. Chinese electric vehicle maker BYD has surpassed Tesla in production, becoming the world’s largest maker of electric cars. China has already reached the global forefront in versatile high-tech industries. 

Meanwhile, China will continuously adopt a more proactive fiscal policy.

The central government has set the deficit-to-GDP ratio for this year at around 4 percent, and a total of 1.3 trillion yuan of ultralong special Treasury bonds will be issued, which are deemed likely to further boost market confidence in 2025 and in the future.

To encourage domestic consumption, a second set of ultralong special Treasury bonds totaling 300 billion yuan will be issued to support consumer goods trade-in programs, which cover smartphones, tablets and smartwatches, injecting impetus into the retail market and enhancing people’s livelihoods.

Furthermore, China will further expand high-standard opening-up to foreign trade and investment.

The central government has confirmed that it will remain steadfast in pursuing a mutually-beneficial strategy of opening-up, and oppose unilateralism and protectionism in all forms. China is ready for the United States and some Western countries’ latest futile maneuvers to curb its rise.

China’s General Administration of Customs’ data showed that foreign trade surged by 5 percent, reaching a record high of 43.85 trillion yuan last year.

The State has expressed its confidence in the Hong Kong Special Administrative Region and encouraged the city to distinguish itself in three specific areas:

First, the HKSAR government should take the initiative to beef up its economic ties with the rest of the world. By leveraging its global connectivity under the principle of “one country, two systems”, the city will serve the nation to its full capacity in 2025. As the nation opens up further, Hong Kong can woo more overseas tourists, business travelers and investors to visit the city. Hong Kong can also hold more large-scale entertainment events and exhibitions to attract foreign visitors, as well as encourage various social and business sectors to reach out to the international community. As a cosmopolitan metropolis, Hong Kong’s strengths in finance and trading position it to play a bigger role in the nation’s expanded global engagement.

Second, the HKSAR government should take the initiative to dovetail the city’s development with the upcoming 15th Five-Year Plan.

Third, hopefully, Hong Kong’s fiscal balance will be restored in the next few years amid concerns about the government’s budget deficit. Article 107 of the Basic Law states that the HKSAR government should follow the principle of keeping expenditure within the limits of revenues while drawing up its budget, and ensure it is commensurate with the growth rate of its GDP.

As the curtain fell on the two sessions in Beijing, a clear blueprint for 2025 and beyond has emerged from the central government’s deliberations. With the unwavering backing of the nation, the HKSAR stands ready to meet any challenge, more connected than ever to the global tapestry. The city is set to further entrench its strategic position in the nation’s development narrative, fortifying its status as the pivotal conduit between the Chinese mainland and overseas markets. In this era of collaboration and progress, Hong Kong’s role is not just visionary but vital, as it bridges divergent economies with its unique dynamism and resilience.

The author is a member of the Beijing Municipal Committee of the Chinese People’s Political Consultative Conference, and founder and chairman of the One Country Two Systems Youth Forum.

The views do not necessarily reflect those of China Daily.