China's Two Sessions and CDF: Strengthening Global Confidence and the China-Pakistan Partnership

China has sent a clear message of prioritizing stability, innovation, and openness amid global uncertainties with the conclusion of its annual Two Sessions legislative meetings and the national-level economic forum—the China Development Forum (CDF)—this month. As foreign investors reaffirm their confidence in the world’s second-largest economy, China and Pakistan stand to deepen collaboration under frameworks like the China-Pakistan Economic Corridor (CPEC), particularly in the areas of technology, green energy, and trade diversification.

Global investors optimistic about China's market

At this year's CDF—a platform bridging Chinese policymakers and global CEOs—foreign businesses signaled renewed optimism despite ongoing geopolitical headwinds. Over 80 multinational executives, including Apple CEO Tim Cook and Siemens CEO Roland Busch, participated in the event, with many announcing expansion plans within China.

For Pakistan, this presents new opportunities to leverage China's growing openness. Increasingly, Pakistani manufacturers are partnering with Chinese tech giants like Huawei and Xiaomi to produce components for global markets, particularly through the use of CPEC Special Economic Zones.

Growth targets: Balancing ambition with realism

China has set its 2025 targets at around 5% GDP growth, an unemployment rate of approximately 5.5%, over 12 million new urban jobs created, and a 2% increase in consumer prices. These goals take into account both domestic and global conditions, reflecting a strategy of steady yet sustainable progress.

The government has emphasized that the 5% growth target is essential to stabilizing employment, mitigating risks, and improving livelihoods. Meanwhile, the 2% inflation target is designed to maintain price stability, with a focus on leveraging policies and reforms to better balance supply and demand dynamics. Rather than relying on large-scale stimulus, the government is prioritizing "high-quality growth" driven by technological innovation.

Innovation as a growth multiplier

China's push for self-reliance in science and technology took center stage during the discussions. Breakthroughs in AI, including advancements by companies such as DeepSeek and Unitree Technology, aim to address demographic challenges and offset trade restrictions.

For Pakistan, this presents a key opportunity to partner with China in emerging industries. CPEC's Phase-II, which focuses on industrialization and digitalization, provides an ideal framework to foster technological collaboration and mutual growth.

Green transition: A shared priority

As the world's largest investor in renewable energy, China aims to derive 25% of its energy from non-fossil sources by 2025. These aspirations align closely with Pakistan’s climate resilience goals, offering promising avenues for technology transfer and joint clean energy initiatives under CPEC.

Implications for China-Pakistan cooperation

China's economic priorities—stability, innovation, and sustainability—deeply resonate with Pakistan's development needs. Over the years, the construction of the China-Pakistan Economic Corridor has promoted regional connectivity and trade openness while creating over 200,000 jobs in Pakistan’s energy and infrastructure sectors, according to the Pakistan Planning Ministry.

As a gateway to the Arabian Sea and South Asia, Pakistan provides China with access to critical maritime routes and emerging markets, complementing its broader Belt and Road Initiative.

In an era of global uncertainties, the China-Pakistan model offers a promising template for South-South solidarity—one guided by shared needs, mutual benefits, and sustainable growth, rather than merely capital flows.