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Key takeaways: How China aims to fix an ailing economy and transform into a high-tech power

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Beijing
CNN
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China’s leaders have spent the past week unveiling their plan to steer the world’s second-largest economy through looming challenges by transforming the country into a technological powerhouse and ramping up spending to hit an ambitious growth target.

The thousands of delegates who gathered in Beijing for China’s week-long “two sessions” meeting of its rubber stamp legislature and top political advisory body will vote Tuesday, typically almost unanimously, to approve the plan.

The stakes are high for China’s government, and Xi Jinping, the country’s most powerful leader in decades, to get the initiatives right.

Beijing needs to fix a raft of domestic issues, including the fallout of a sprawling real estate crisis, high local government debt and weak consumer demand, while facing mounting economic pressure from the United States as President Donald Trump ramps up tariffs on Chinese imports and threatens expanded controls on American investment in China.

On Sunday, new data showed China’s consumer prices plunged to their lowest level in 13 months in February, underscoring the persistent deflationary pressures dragging on the economy.

Chinese leaders were frank about the challenges ahead, even as they played up confidence in China’s future. Premier Li Qiang said at the opening of the National People’s Congress (NPC) Wednesday that the country’s growth target of around 5% “underscores our resolve to meet difficulties head-on and strive hard to deliver.”

The highly choreographed gathering is largely about political ceremony as true decision-making power lies with China’s ruling Communist Party.

But the priorities outlined – and the signals sent by Xi and his officials during the event – give a crucial window into how Beijing aims to ensure China’s continued economic growth and technological rise, especially at a time of mounting frictions and uncertainty in its relations with the US.

Here are key three takeaways from the event:

Focus on AI and ‘industries of the future’

Artificial intelligence (AI) was the hot topic at this year’s gathering, with China’s enthusiasm for the technology supercharged by the breakout success of tech firm DeepSeek.

The privately owned Chinese company’s large language model, released in January, shocked Silicon Valley and thrilled the country. The model appeared to nearly match the capabilities of its American rivals, despite years of mounting US restrictions on Chinese access to high-power AI chips typically used to train such models.

China’s economic tsars on Thursday announced a state-backed fund to support AI and other technological innovations, which they estimated would attract nearly 1 trillion yuan ($138 billion) in capital over 20 years from local governments and the private sector.

The government’s work report, a roughly 30-page document laying out Beijing’s plans for the year ahead, called for the country to “foster emerging industries and industries of the future” like biomanufacturing, quantum technology, embodied AI and 6G technology. It also stressed that China needs to build up its domestic talent and improve the country’s research and development.

That’s all part of Xi’s overarching vision: to transform China’s industries with high-tech innovation and ensure the country is technologically self-sufficient in the face of US efforts to limit Chinese access to American technologies over security concerns.

“China is sending a signal to the outside world that it’s quite independent from the US now,” said Wang Yiwei, director of the Institute of International Affairs at Renmin University in Beijing, pointing to China’s homegrown tech innovations and its ambitious economic growth target. “Now we have to do (technological innovation) ourselves … it’s more like two circles of innovation.”

Xi also signaled he’s enlisting some new muscle for his high-tech push. Last month, the leader met with the heads of the country’s biggest tech firms in a symposium and told them it was was “prime time” for private enterprises “to give full play to their capabilities.”

The gathering was a significant tone shift toward an industry still recovering from a years-long regulatory crackdown – and Xi reinforced his message during a meeting on the NPC sidelines last week, where he told delegates to “fully implement” the “spirit” of that symposium.

The annual gathering of the Chinese People's Political Consultative Conference, or CPPCC, holds its closing meeting in Beijing's Great Hall of the People on March 10, 2025.

Boosting demand and juicing growth

Officials also announced they would back their ambitious “around 5%” growth target with more robust government spending, raising the budget deficit to around 4% of gross domestic product, the highest level in decades.

But some analysts remain skeptical about whether the measures announced in recent days will be enough to offset the expected hit to growth if a trade war with the US escalates – and to achieve a goal China this year listed as its top priority: boosting flagging consumer demand.

China would “move faster” to address inadequate domestic demand and make it the “main engine” of growth, Li, the premier, said in his address Wednesday.

High youth unemployment, gaps in social benefits and welfare, stock market volatility, as well as financial instability caused by the property sector crisis, are all seen as factors causing many in China to look at their economic future with uncertainty – and prefer to save rather than spend.

The issue is now becoming more urgent for Beijing, which will need domestic consumers more than ever if exports, long an important driver of growth, take a hit from fresh American tariffs. Trump doubled additional levies on all Chinese imports to the US to 20% on March 4. China’s retaliatory tariffs, which target a range of agricultural imports from the US to the tune of 10% and 15%, went into effect Monday.

Chinese officials in recent days outlined efforts geared to boost consumption like extending a program for trading in old appliances, and said they would create jobs, raise wages, promote free preschool education and expand elder services.

They also looked to assure the country that they were addressing persistent challenges in the real estate sector, including through announcing a mechanism to help local governments to buy back unsold homes languishing due to the property sector crisis.

“(Beijing is) trying to send a signal to local authorities that boosting consumption, either with better welfare policies or (policies such as those) getting people to buy new consumer electronics, is a priority,” said Victor Shih, director of the University of California San Diego’s 21st Century China Center.

However, this was largely a mandate that the central government was looking to local governments to fund, and most provinces would not have the money for these efforts without imposing taxes, “which will dampen consumption,” he added.

China's top diplomat Wang Yi speaks to media on the sidelines of the

Despite the challenges – and the uncertainty of whether tech and trade frictions with the US will continue to escalate, the message from Beijing over the past week was one of confidence, no matter what happens. It’s a message apparently aimed at people both at home and in Washington.

At an annual press conference on the sidelines of the gathering, long a key opportunity for China to communicate its foreign policy to international media, Foreign Minister Wang Yi aimed to cast China as a stable global player, in contrast to the US and its “America First” policy. He also vowed that China country would continue to advance in its ambitions.

“Where there is blockade, there is breakthrough; where there is suppression, there is innovation,” he said.

The top diplomat also criticized America’s tariffs, saying: “No country should fantasize that it can suppress China on the one hand and develop good relations with China on the other.”

Earlier in the week, a foreign ministry spokesperson was blunter: “If the US insists on waging a tariff war, trade war, or any other kind of war, China will fight till the end,” he told reporters at a regular briefing.

But outside the official lines, how fully burgeoning optimism in some pockets can take hold will depend on how the rhetoric translates into action in the year ahead.

“The mood has become more optimistic starting from this year,” said Yao Yang, a professor at Peking University’s China Center for Economic Research, attributing this to China’s homegrown successes like DeepSeek.

“But it really depends on government policy for this mood to continue. If the government’s moves to stimulate the economy and support private enterprise are not decisive, then that mood will go away.”



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Hong Kong’s oldest Democratic Party is shutting down as Beijing leaves no room for dissent

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Hong Kong
CNN
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Hong Kong’s oldest and largest pro-democracy political party is moving to disband as Beijing’s sweeping crackdown on the city leaves even moderate opposition groups with no room to operate.

The Democratic Party, one of the leading voices of opposition in the semi-autonomous city for the past three decades, has started the process of dissolution following recent warnings from Chinese government officials, two of its veteran members told CNN.

“The message was that the party has to be disbanded or there will be consequences,” said one of them, Yeung Sum, a former Democratic Party chairman.

Fred Li, a former lawmaker, said a Chinese official told him that the party should not remain until the end of this year, when an election will be held.

Founded by liberal lawyers and academics three years before the former British colony’s 1997 handover to China, the Democratic Party had campaigned for universal suffrage and on matters from labor rights to conservation during a period when such issues were openly discussed in the city.

Widely seen as moderates willing to work with Beijing, Democratic Party leaders had spearheaded a significant voting bloc in the city’s legislature and were regularly afforded space to critique local government policy, until mass pro-democracy protests in 2019 ushered in a new and more restrictive political era.

Beijing’s crackdown in the years since, including the prosecution and jailing of pro-democracy leaders, has left the once-influential party rudderless as it contends with sweeping national security legislation and “patriots only” electoral reforms enacted in 2021 that make it nearly impossible for opposition candidates to stand for the city’s legislature.

Democratic Party chairman Lo Kin-hei told a news conference last Sunday that 90% of about 110 party members had voted to delegate power to a committee to start the dissolution process, adding he hoped a final vote would take place in the coming months.

“I hope Hong Kong’s political parties… will continue to work for the people,” Lo said. “We have always hoped to serve the Hong Kong people, and to do things that are good for society.”

Democratic Party chairman Lo Kin-hei, left, and Mok Kin-shing, vice chairman, speak at a press conference at the party's office in Hong Kong on April 13, 2025.

The Democrats’ move to disband demonstrates Beijing’s unwillingness to allow even the mildest of dissenting voices to be heard in Hong Kong, say analysts.

John Burns, emeritus professor at the University of Hong Kong (HKU), said the party had “symbolized the promise of some kind of democratic development in Hong Kong, leading to universal suffrage as promised in the Basic Law,” referring to the city’s mini-constitution.

“A dissolution of the party reflects official Hong Kong’s turn away from popular participation, locally accountable government, and increased transparency toward more authoritarian rule,” Burns said.

Eric Lai, a research fellow at the Georgetown Center for Asian Law, said the Democrats’ move “shows there are no more feasible ways for groups to exist as an opposition party.”

“It’s self-conflicting for the government to suggest that nothing has changed,” he said.

In a statement to CNN, a city government spokesperson said decisions by individual groups “to disband or suspend operation are completely unrelated to the freedom or rights enshrined in Hong Kong law.”

Criticism of the government remains permitted in Hong Kong, “however strong, vigorous or critical” it may be, so long as it is “based on facts,” the spokesperson said. The Hong Kong government would “continue to resolutely discharge the duty of safeguarding national security,” they added.

111394_Hong_Kong_Democratic_Party_Dissolution_16x9_2.jpg

Hong Kong’s Democratic Party nears its end

01:41

The Democrats had enjoyed relative political freedom following Hong Kong’s return to Chinese rule, even holding more seats than any other party in the mostly pro-Beijing legislature until 2004.

The party’s leaders were often the figureheads of major demonstrations, including an annual June 4 vigil to commemorate the Tiananmen Square massacre and a well-attended pro-democracy march held every July. (Neither event would be permitted on the Chinese mainland, and both are now effectively banned in Hong Kong).

But support for the Democrats plunged in 2010 after its leaders negotiated directly for universal suffrage with officials from Beijing’s liaison office in Hong Kong – a move seen as a betrayal by other pro-democracy groups.

The party was then pushed further to the sidelines by the emergence of a new generation of pro-democracy leaders and student activists during months-long protests for universal suffrage in 2014.

Democratic Party candidates for legislative elections show thank-you messages outside the legislature in Hong Kong on September 17, 2004.
Democratic Party lawmaker Roy Kwong Chun-yu addresses crowds at a protest in Hong Kong on June 16, 2019.

However, when anti-government demonstrators returned to Hong Kong’s streets en masse in 2019, the Democrats’ popularity resurged as many of its leaders stood on the front lines of the massive – and sometimes violent – protests that rocked the financial hub.

Later that year, the Democratic Party was the biggest winner in local district council elections. But its participation in the protests also drew the ire of Hong Kong authorities and Beijing, paving the way for its demise.

“The party made mistakes when it failed to draw a clear line between itself and radical separatists calling for Hong Kong’s independence from 2014-2020,” said Burns, from HKU. “Authorities have punished the party, jailing and chasing out Democratic Party leaders.”

Over the past five years, the space for the Democrats to maneuver has been increasingly squeezed by Chinese authorities.

In 2020, Beijing imposed a sweeping national security law on Hong Kong, introducing the maximum sentence of life imprisonment for four main crimes of secession, subversion, terrorism and collusion with foreign forces.

A year later, the Chinese government rewrote Hong Kong’s electoral rules to require candidates to seek nomination from pro-Beijing groups, essentially excluding the opposition from elections. A legislature filled with Beijing loyalists last year unanimously passed a law expanding the scope of national security offenses.

Beijing and the Hong Kong government argued that the electoral changes had enhanced democracy and have repeatedly defended the security laws as restoring order and returning prosperity to the city. But critics say they have curtailed freedoms and had a “chilling effect” on civil society, including independent institutions and the media.

Steve Tsang, director of the China Institute at SOAS University of London, said political and social protests seen as challenging state security are “becoming increasingly if not well-nigh impossible.”

“Many other elements of civil rights, including that of speech and organizing political parties have also been severely curtailed,” he added.

Last year, five former Democratic Party lawmakers were among 45 opposition figures sentenced to prison terms of up to 10 years after they were found guilty of subversion for taking part in an election primary in 2020.

National security police have also placed HK$1 million ($129,000) bounties on pro-democracy activists who fled overseas, including an Australia-based former Democratic Party lawmaker accused of secession, subversion and collusion with a foreign country.

Meanwhile, the trial of media tycoon and outspoken democracy supporter Jimmy Lai is ongoing, more than four years after he was detained on charges of colluding with foreign forces, which he denies.

The Democratic Party’s announcement last weekend follows the dissolution of almost 100 civil and pro-democracy organizations in Hong Kong in the wake of Beijing’s crackdown.

The party had tried to survive as a civic group in recent years but struggled to raise funds as multiple private venues canceled their events, often at the last minute.

Former Democratic Party lawmaker Emily Lau said the party’s move to disband was “very sad.”

“We’ve been around for over 30 years, and we’ve got the support of many Hong Kong people,” she told CNN outside court in February, before another former party lawmaker was jailed on charges of rioting during the 2019 protests.

“I don’t know what they are thinking in Beijing. We have demonstrated, not just words, but by action, that we are reasonable. We are willing to talk, to negotiate, to compromise, reach a deal and go forward.”



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Chinese robots ran against humans in the world’s first humanoid half-marathon. They lost by a mile

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Hong Kong
CNN
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If the idea of robots taking on humans in a road race conjures dystopian images of android athletic supremacy, then fear not, for now at least.

More than 20 two-legged robots competed in the world’s first humanoid half-marathon in China on Saturday, and – though technologically impressive – they were far from outrunning their human masters over the long distance.

Teams from several companies and universities took part in the race, a showcase of China’s advances on humanoid technology as it plays catch-up with the US, which still boasts the more sophisticated models.

And the chief of the winning team said their robot – though bested by the humans in this particular race – was a match for similar models from the West, at a time when the race to perfect humanoid technology is hotting up.

Coming in a variety of shapes and sizes, the robots jogged through Beijing’s southeastern Yizhuang district, home to many of the capital’s tech firms.

Over the past few months, videos of China’s humanoid robots performing bike rides, roundhouse kicks and side flips have blown up the internet, often amplified by state media as a key potential driver of economic growth.

In a 2023 policy document, China’s Ministry of Industry and Information Technology identified the humanoid robotics industry as a “new frontier in technological competition,” setting a 2025 target for mass production and secure supply chains for core components.

A robot loses control at the start of what is billed as the world's first robot half marathon in Beijing, Chaina, on April 19, 2025.

Fears have mounted in recent years about how artificial intelligence – and robots – may one day outsmart humans.

And while AI models are fast gaining ground, sparking concern for everything from security to the future of work, Saturday’s race suggested that humans still at least have the upper hand when it comes to running.

The robots were pitted against 12,000 human contestants, running side by side with them in a fenced-off lane.

After setting off from a country park, participating robots had to overcome slight slopes and a winding 21-kilometer (13-mile) circuit before they could reach the finish line, according to state-run outlet Beijing Daily.

Just as human runners needed to replenish themselves with water, robot contestants were allowed to get new batteries during the race. Companies were also allowed to swap their androids with substitutes when they could no longer compete, though each substitution came with a 10-minute penalty.

The first robot across the finish line, Tiangong Ultra – created by the Beijing Humanoid Robot Innovation Center – finished the route in two hours and 40 minutes. That’s nearly two hours short of the human world record of 56:42, held by Ugandan runner Jacob Kiplimo. The winner of the men’s race on Saturday finished in 1 hour and 2 minutes.

Robots take part in what is billed as the world's first robot half marathon during the Humanoid Robot Half-Marathon held in Beijing, China, on April 19, 2025.

Tang Jian, chief technology officer for the robotics innovation center, said Tiangong Ultra’s performance was aided by long legs and an algorithm allowing it to imitate how humans run a marathon.

“I don’t want to boast but I think no other robotics firms in the West have matched Tiangong’s sporting achievements,” Tang said, according to the Reuters news agency, adding that the robot switched batteries just three times during the race.

The 1.8-meter robot came across a few challenges during the race, which involved the multiple battery changes. It also needed a helper to run alongside it with his hands hovering around his back, in case of a fall.

Most of the robots required this kind of support, with a few tied to a leash. Some were led by a remote control.

Amateur human contestants running in the other lane had no difficulty keeping up, with the curious among them taking out their phones to capture the robotic encounters as they raced along.



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Nagpur violence: Why is long-dead Indian emperor Aurangzeb angering millions of Hindus today?

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CNN
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Despite being dead for more than 300 years, this Indian ruler is still making waves in the nation’s politics.

Aurangzeb Alamgir has become so central to India’s fraught political moment, his memory is leading to sectarian violence across the country.

The sixth emperor of the famed Mughal dynasty, he is considered by many detractors to be a tyrant who brutalized women, razed Hindu temples, forced religious conversions and waged wars against Hindu and Sikh rulers.

And in a nation now almost entirely under the grip of Hindu nationalists, Aurangzeb’s “crimes” have been seized upon by right-wing politicians, turning him into the ultimate Muslim villain whose memory needs to be erased.

Sectarian clashes erupted in the western city of Nagpur last month, with hardline Hindu nationalists calling for the demolition of his tomb, which is about 400 kilometers away.

Seemingly spurred on by a recent Bollywood movie’s portrayal of Aurangzeb’s violent conquests against a revered Hindu king, the violence led to dozens of injuries and arrests, prompting Nagpur authorities to impose a curfew.

As tensions between the two communities continue to mount, many right-wing Hindus are using Aurangzeb’s name to highlight historical injustices against the country’s majority faith.

And they are causing fears among India’s 200 million Muslims.

Circa 1666, Mughal Emperor Aurangzeb of India

‘Admiration and aversion’

The Mughals ruled during an era that saw conquest, domination and violent power struggles but also an explosion of art and culture as well as periods of deep religious syncretism – at least until Aurangzeb.

Founded by Babur in 1526, the empire at its height covered an area that stretched from modern-day Afghanistan in central Asia to Bangladesh in the east, coming to an end in 1857 when the British overthrew the final emperor, Bahadur Shah II.

Its most well-known leaders – Humayun, Akbar, Jahangir and Shah Jahan – famously promoted religious harmony and heavily influenced much of Indian culture, building iconic sites such as the Taj Mahal and Delhi’s Red Fort.

But among this more tolerant company, Aurangzeb is considered something of a dark horse – a religious zealot and complex character.

Aurangzeb “evoked a mixture of admiration and aversion right from the moment of his succession to the Mughal throne,” said Abhishek Kaicker, a historian of Persianate South Asia at UC Berkeley.

“He attracted a degree of revulsion because of the way in which he came to the throne by imprisoning his father and killing his brothers… At the same time, he drew admiration and loyalty for his personal unostentatiousness and piety, his unrivaled military power that led to the expansion of the Mughal realm, his political acumen, administrative efficiency, and reputation for justice and impartiality.”

India's Taj Mahal was built by Shah Jahan, Aurangzeb's father, as a mausoleum for his wife Mumtaz Mahal. It was completed in 1648.
The Red Fort was built by emperor Shah Jahan in the mid 17th Century and remains one of India's most famed tourist attractions.
Humayun's Tomb was built in the 1560s, with the patronage of Humayun's son, the great Emperor Akbar.

Born in 1618 to Shah Jahan (of Taj Mahal fame) and his wife Mumtaz Mahal (for whom it was built), historians describe the young prince as a devout, solemn figure, who showed early signs of leadership.

He held several appointments from the age of 18, in all of which he established himself as a capable commander. The glory of the Mughal empire reached its zenith under his father, and Aurangzeb’s scrambled for control of what was then the richest throne in the world

So when Shah Jahan fell ill in 1657, the stage was set for a bitter war of succession between Aurangzeb and his three siblings in which he would eventually come face-to-face with his eldest brother, Dara Shikoh, a champion of a syncretic Hindu-Muslim culture.

Aurangzeb imprisoned his ailing father in 1658 and defeated his brother the year after, before forcibly parading him in chains on a filthy elephant on the streets of Delhi.

“The favorite and pampered son of the most magnificent of the Great Mughals was now clad in a travel-tainted dress of the coarsest cloth,” wrote Jadunath Sarkar in “A Short History of Aurangzib.”

“With a dark dingy-colored turban, such as only the poorest wear, on his head. No necklace or jewel adorning his person.”

Dara Shikoh was later murdered.

By now, Aurangzeb’s authority had reached extraordinary heights, and under his leadership the Mughal empire reached its greatest geographical extent.

He commanded a degree of respect and for the first half of his reign, ruled with an iron fist, albeit with relative tolerance for the majority Hindu faith.

Until about 1679, there were no reports of temples being broken, nor any imposition of “jizya” or tax on non-Muslim subjects, according to Nadeem Rezavi, a professor of History at India’s Aligarh University. Aurangzeb behaved, “just like his forefathers,” Rezavi said, explaining how some Hindus even held high rank within his government.

In 1680 however, that all changed, as he embraced a form of religious intolerance that reverberates to this day.

The tomb of Mughal emperor Aurangzeb, in Maharashtra, India.

The zealot ruler demoted his Hindu statesmen, turning friends into foes and launching a long and unpopular war in the Deccan, which included the violent suppression of the Marathas, a Hindu kingdom revered to this day by India’s right-wing politicians – including Prime Minister Narendra Modi.

Members of Modi’s Bharatiya Janata Party (BJP) have been quick to point out the cruelties inflicted on Hindus by Aurangzeb – forcing conversions, reinstating the jizya, and murdering non-Muslims.

He also waged war on the Sikhs, executing the religion’s ninth Guru Tegh Bahadur, an act makes Aurangzeb a figure of loathing among many Sikhs to this day.

This brutality was on display in the recently released film “Chhaava,” which depicts Aurangzeb as a barbaric Islamist who killed Sambhaji, the son of the most famous Maratha king, Chhatrapati Shivaji.

Bajrang Dal And Vishva Hindu Parishad workers protest in Mumbai to demand the removal of Mughal emperor Aurangzeb's tomb from Khuldabad on March 17, 2025.

“Chhaava has ignited people’s anger against Aurangzeb,” said Devendra Fadnavis, the chief minister of Maharashtra, where Nagpur is located.

Muslims alleged members of the right-wing Vishwa Hindu Parishad (VHP) burned a sheet bearing verses from their holy Quran.

Yajendra Thakur, a member of the VHP group, denied the allegations but restated his desire to have Aurangzeb’s tomb removed.

“Aurangzeb’s grave should not be here,” he told CNN from Nagpur. “It shouldn’t be here because of everything he did to Shambhaji Maharaj. Even our Muslim brothers should issue a statement saying that Aurangzeb’s grave should not be in Nagpur.”

Modi’s invocation of the man who led India before him is no surprise.

The prime minister, who wears his religion on his sleeve, has been a long-time member of the Rashtriya Swayamsevak Sangh, a right-wing paramilitary organization that advocates the establishment of Hindu hegemony within India. It argues the country’s Hindus have been historically oppressed – first by the Mughals, then by the British colonizers who followed.

And many of them want every trace of this history gone.

The Maharashtra district where he is buried, once known as Aurangabad, was renamed after Shivaji’s son in 2023. The triumphs of his forefathers, the great king Akbar and Shah Jahan, have been written out of history textbooks, Rezavi said, or not taught in schools.

“They are trying to revert history and replace it with myth, something of their own imagination,” Rezavi said. “Aurangzeb is being used to demonize a community.”

Modi’s BJP denies using the Mughal emperor’s name to defame India’s Muslims. But his invocation of India’s former rulers is causing fear and anxiety among the religious minority today.

While historians agree that he was a dark, complex figure, and don’t contest his atrocities, Rezavi said it is necessary to recognize that he existed at a time when “India as a concept” didn’t exist.

“We are talking about a time when there was no constitution, there was no parliament, there was no democracy,” Rezavi said.

Kaicker seemingly agrees. Such historical figures “deserve neither praise nor blame,” he said.

“They have to be understood in the context of their own time, which is quite distant from our own.”

Back in Nagpur, demands for the tomb’s removal have gone unanswered, with some members of the Hindu far right even dismissing the calls for demolition.

Local Muslim resident Asif Qureshi said his hometown has never seen violence like that which unfolded last month, condemning the clashes that convulsed the historically peaceful city.

“This is a stain on our city’s history,” he said.



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