China’s Conference starts important session

It is interesting that the nearly 100-minute press conference held in Beijing a day before the second session of the 14th National People’s Conference starting on March 5 was reported differently in the Chinese and Western media. The Western news agency Reuters said that Chinese Prime Minister Li Qian will not hold the customary press conference at the end of the NPCC session a week later. This was interpreted as a sign of China’s growing isolationism.

China’s People’s Daily said spokesman for the NPCC Lou Qinjian remarked that the NPCC would review the report on the economic and social development for 2023 and will also review the draft economic report for 2025. It was indicated that this was also a crucial year because China celebrates the 75th year of the formation of the People’s Republic of China (PRC), which came into existence in October 1949, and that it also is a crucial year for the 14th Five-Year Plan, spanning 2021-25.

Liu Jieyi, spokesman for the NPCC, expressed the hope that the Chinese economy’s future prospects are bright. This becomes important because Chinese economic growth had tumbled in the post-COVID years, and it looked like the second largest economy in the world was tumbling. Liu said, “Looking to the future, the Chinese economy is resilient, has huge potential and vitality and its growth momentum will continue to strengthen and lead to a bright future.” Coming from the government spokesperson, this could be seen as natural and that there is nothing surprising about it. But economists seem to feel that if the NPCC keeps to the target of 5 per cent economic growth then it will be a realistic target.

Interestingly, there is much faith in the private sector in the Chinese economy and the protection of law that private enterprises would need. According to Liu Yonghao, chairman of New Hope Group and member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), “The private economy constitutes an important driver of employment and a non-negligibe force in China’s economic upgrade. In recent years, the vigour of the private economy has slipped to some extent due to both internal and external environment.

“It would be a much-needed boost to the confidence of private entrepreneurs if there is a law that guarantees equal market position of private firms as State-owned and foreign companies.” Liu told this to Global Times, which is considered a newspaper that articulates Chinese views to the world. This is an important and crucial issue, and the fact that it is getting an airing in a Chinese daily does reflect that there is serious concern about it in the Chinese political and economic circles.

The other interesting aspect is the online survey of 6.15 million people carried out between February 5 and 25 by People’s Daily which sought the views of Chinese Internet users. It is an annual survey. Their major concern was there should be stricter laws against cyber-crimes, and that children, women and old people should be protected. There was also concern about rurual revitalisation and for jobs. The demand was that enterprises should be encouraged to create jobs. “support and assist job-seekers to take grassroots positions” and “support state-owned enterprises in expanding employment.”

The concerns and demands expressed in this wide survey reflect the real state of the Chinese economy. The need for jobs seems to be of prime concern for many. It is a challenge to the Chinese government, which is run by the Communist Party of China. Despite being a one-party polity, the problems are many, and the demands are many as well. It is a matter of importance how China deals with its economic challenges.