March 11, 2024, 00:25 GMT
Updated 38 minutes ago
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Prime Minister Li Qiang – right, with President Xi Jinping – will not deliver this year's closing speech
As China's annual parliamentary session drew to a close after a hectic week of sessions, a glaring omission emerged from Monday's final agenda.
The conclusion of the National People's Congress is usually the Prime Minister's press conference. But this year and for the rest of the semester, the tradition was mysteriously shattered.
Officials said there was no need for this as there were other ways for journalists to ask questions. But many observers saw it as another sign of consolidation and control, which became a running theme in Congress even as senior officials preached openness.
Canceling the press conference – for the first time in 30 years – weakens Prime Minister Li Qiang's profile. Although the event was scripted, it was a rare opportunity for foreign journalists to ask questions and gave the country's second-in-command some room to flex his muscles.
There have even been some unexpected moments in recent years. In 2020, then-premier Li Keqiang released figures that sparked debate over the government's claim that it had eradicated poverty.
The dimming of the spotlight on the prime minister and a shorter congress this year are all signs of ongoing structural change within the Chinese Communist Party (CCP), in which President Xi Jinping is increasingly amassing power at the expense of other people and institutions, emphasized Alfred Wu, Associate Professor at the National University of Singapore who studies Chinese governance.
On Monday, congressmen also passed a law that effectively tightens the party's control over the State Council, the Chinese cabinet headed by Mr. Li.
But to the outside world, the party is seeking to project a different image as it struggles with dwindling confidence from foreign investors and a general malaise in its economy.
Speaking to international journalists last week, Foreign Minister Wang Yi stressed that China is still an attractive place for investment and business.
“China remains a strong growth engine. The 'next China' is still China,” he said, then listed ways in which “China continues to open its doors.”
This year's economic blueprint, which Mr. Li presented at the start of the session, included plans to open more areas to foreign investment and reduce market access restrictions in sectors such as manufacturing and services.
The moves come after foreign investors were spooked by recent anti-espionage and privacy laws as well as several sudden, high-profile arrests of Chinese and foreign businessmen. Foreign direct investment in China recently fell to its lowest level in 30 years.
“There are fewer political checks and balances, there is no transparency. That's the bigger concern for investors… you can't predict what will happen, so avoid the risk,” said Dr. Wu.
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Chinese Foreign Minister Wang Yi said China will “open its doors further”
But last week Mr Wang dismissed such concerns. “Spreading pessimistic views about China ends up harming oneself. Misjudgment of China leads to missed opportunities,” he said as he focused on talking about China's prospects.
Both Mr. Wang and Mr. Li repeatedly used slogans such as “high-quality development” and “new productive forces” to herald a new phase in China's development, although neither fully explained what they meant. China is aiming for an ambitious GDP growth target of around 5% this year.
“Beijing is changing the way it opens up to the world,” said Neil Thomas, a Chinese politics researcher at the Asia Society Policy Institute.
He said they are now focusing on attracting high-quality foreign technology and advanced manufacturing to help Chinese companies in key future industries.
“Foreign investment and trade are less important to China’s economy than they once were, but Beijing still wants to avoid a rush of departures that could further undermine its growth prospects.”
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China is focused on strengthening its high-end technology sector
At the same time, officials wanted to emphasize the government's ultimate goal.
“Stability is of universal importance because it is the foundation of everything we do,” Mr. Li said. Elsewhere in his report, he made clear that while China is pursuing growth, it is also prioritizing greater national security become.
Some may wonder how successful China can achieve a thriving open economy while increasing control.
But “from Beijing's perspective, there is no contradiction between high-quality development, particularly with foreign investment, and greater security needs,” said Jacob Gunter, senior analyst at Merics who specializes in the Chinese economy.
For example, when it comes to critical technologies where Chinese companies still need to catch up, they want to ensure that as much of it as possible is produced within its borders, Mr. Gunter emphasized. This reduces the risk that competitors – such as the US and its allies – will steal the technology or block its exports to China.
Beijing also signaled that it would continue to crack down on problematic areas of its economy, such as the weakening real estate sector and rising local government debt.
Mr. Li pledged further measures to defuse financial risks and improve supervision and vowed to crack down on illegal financial activities.
Although these problems have existed for several years, “the level of debt and the size of the housing bubble have become so large that they must be solved now and cannot be backed down,” Mr. Gunter said.
“The economy is doing really badly at the moment. The fact that they have not started to stop this again may be a sign that this is a longer-term priority and not something they will step back from.”
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