BEIJING – China pulled off a surprise on the eve of its big annual political event, abandoning a longstanding tradition – a move that may do little to ease global concerns about the fate of the world's second-largest economy.
Beijing said on Monday that the country's premier would not hold a press conference at the end of the National People's Congress (NPC), depriving journalists from around the world of a rare opportunity to ask questions of a top Chinese leader at home and at a time of economic uncertainty increasing tensions with the United States and other countries.
Although the annual session of China's legislature is largely ceremonial in nature, it is the country's biggest political event of the year. In the last 30 years, it ended with a full press conference by the premier, China's second-biggest official after President Xi Jinping.
But this year, Premier Li Qiang will not answer questions, the speaker of parliament said on the eve of the meeting, which runs until March 11.
“Barring special circumstances, this agreement will remain in place for the remainder of this NPC term,” spokesman Lou Qinjian told a news conference in Beijing. He did not elaborate but said there would instead be further briefings by other government ministers on diplomacy, the economy and people's livelihoods.
The current legislative period is expected to last until 2027.
Instilling confidence in China's economy, the world's second-largest after the United States, is a key goal of Chinese officials as the meeting of nearly 3,000 delegates from across the country begins on Tuesday.
“Overall, China has more favorable conditions than challenges in its economic development,” Lou, the NPC spokesman, said on Monday. “The underlying trend of economic recovery and long-term growth remains unchanged. We have great confidence in that.”
As usual, the legislative session begins with Li presenting the government's work report, which is expected to include this year's economic growth target.
But canceling his news conference could add to the fears of investors already worried about China's economic slowdown, especially since the prime minister is nominally in charge of the economy. It could also be a reference to Xi's increasing monopoly of power over the country's sprawling bureaucracy.
It's “a shame and a missed opportunity for political communication,” said Bert Hofman, an associate professor at the East Asian Institute at the National University of Singapore, in a post on X.
Press conferences by previous Chinese premiers “were often very meaningful and helped improve understanding of Chinese politics,” he added.
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On Monday, Xi, Li and other Chinese government officials attended the opening session of the Chinese People's Political Consultative Conference, an advisory body that meets simultaneously with the NPC in the ornate Great Hall of the People west of Tiananmen Square.
The legislative session will be closely watched at home and abroad for signs of what the government will do to bolster China's economy, which grew 5.2% last year. That compares with 4.6% for this year that the International Monetary Fund forecast in January.
China is facing a number of economic challenges, including a housing crisis, deflation, unemployment, stock market volatility and a decline in exports due to geopolitical tensions.
Foreign direct investment is a concern after falling 8% last year for the first time since 2012, Commerce Department data shows. Companies doing business in China have raised concerns about tightened access to information and an expanded anti-espionage law.
The State Council, China's cabinet, said last month that authorities should “make stabilizing foreign investment a key focus of this year's economic work.”
Chinese President Xi Jinping (left) and Chinese Premier Li Qiang at the Great Hall of the People in Beijing on Monday.By Han Guan/`
Economists say China is entering a new phase of development after decades of rapid growth.
China's economy has grown at an average annual rate of more than 9% since 1990, according to the China Power Project at the Center for Strategic and International Studies in Washington. Growth rates have slowed in recent years, but are still higher than in many other countries.
This has led to uncertainty among consumers, who are withdrawing accordingly. Shopping malls and restaurants are trying to adapt to the “new normal” by offering cheaper products and services, said Heiwai Tang, an economics professor at the University of Hong Kong.
“People don't go to luxury restaurants as much anymore to eat very expensive meals or drink a lot of expensive alcohol, but they still go to malls to eat and maybe buy a cup of coffee,” he said told NBC News.
“But if you want consumption to drive economic recovery, we really want high-priced consumption, and that depends on how confident consumers are.”
At this week's legislative session, all eyes will be on China's plans for fiscal stimulus to boost consumption and shift the economy away from a housing-dependent growth model.
“The government needs to make bigger and bolder efforts to restore confidence,” said Xiaolan Fu, an economist at Oxford University, who estimated China’s economic recovery could take three to five years.
Although this is taking longer than originally expected, she said things are “gradually picking up.”
“It's a very slow warm-up process, but I think the direction is positive,” Fu said.
Peter Guo contributed.
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