Two sessions with two messages: Stability and growth

By Prasoon Sharma

China's most important political gatherings this year, Known as the "Two Sessions" - the 13th National People's Congress (NPC) and the 13th National Committee of the Chinese People's Political Consultative Conference (CPPCC) – kicked off on March 5 and 3, respectively.

Held four months after the 19th National Congress of the Communist Party of China (CPC), this was the most highly anticipated "Two Sessions" in recent years.

By pushing revision to the Constitution, the CPC paved the way for stability in leadership. This will allow China to successfully implement a long term vision and projects like the Belt and road.

During the sessions, the Chinese Premier presented the government's work report. This report broadly mentioned achievements made in the last five years and major targets for the next five years.

At the opening meeting of the first session of the 13th National People's Congress (NPC), Li told lawmakers the country is fighting "three critical battles" against financial risk, poverty, and pollution.

Consumers select vegetables at a supermarket in Wuhan, capital of central China's Hubei Province, March 9, 2017. [Photo: Xinhua]

In terms of things done in the past five years, China's gross domestic product (GDP) has risen from 54 trillion to 82.7 trillion yuan, registering average annual growth of 7.1 percent. Due to this, more than 68 million people have been lifted out of poverty.

World Bank president Jim Yong Kim recently observed that China's achievement in poverty alleviation has been "one of the greatest stories in human history." Reducing the global poverty rate to 10.7% in 2013 from 40% in 1981 was mainly China's contribution, and it is getting closer to its target of ending extreme poverty by 2020 according to reports by China's State Council.

Chinese tourist departures have grown from 83 million to over 130 million. As per the reports, Chinese tourists spent $120 Billion in 2013 and more than $200 Billion last year.

To contribute its part to save the world from global warming, China reduced both energy and water consumption per unit of GDP by more than 20 percent. Further, the release of major pollutants has been consistently declining, and the number of days of heavy air pollution in key cities has fallen 50 percent.

China now has the world's largest middle-income group because Chinese's personal income has increased by an annual average of 7.4 percent, outpacing economic growth.

China has moved closer to achieving relatively full employment by creating more than 66 million new urban jobs with its population of over 1.3 billion.

In terms of setting targets for 2018, Premier Li mentioned the following broad points:

-GDP growth of around 6.5 percent

-CPI increase of around 3 percent

-Over 11 million new urban jobs, the surveyed urban unemployment rate within 5.5 percent, and the registered urban jobless rate within 4.5 percent

-Basic parity in personal income growth and economic growth

-A steady rise in import and export volumes, and a basic equilibrium in the balance of payments

-A drop of at least 3 percent in energy consumption per unit of GDP, and continued reductions in the release of major pollutants

-Substantive progress in supply-side structural reforms, basically stable macro leverage, and the systematic and effective prevention and control of risk.

Further, Premier Li added:

-This year's deficit as a percentage of GDP is projected to be 2.6 percent, 0.4 percentage points lower than last year.

-Steel production capacity is to be cut by around 30 million metric tons and coal production capacity by approximately 150 million metric tons.

-Taxes on businesses and individuals will be reduced by more than 800 billion yuan.

-This year will see 732 billion yuan invested in railway construction and around 1.8 trillion yuan invested in highway and waterway projects; the scale of investment in ongoing water conservancy projects will reach 1 trillion yuan.

-The general manufacturing sector will be completely opened up, and access to sectors like telecommunications, medical services, education, elderly care, and new-energy vehicles will be expanded.

-Imports will be expanded, China will host the first China International Import Expo, and lower import tariffs on automobiles, consumer goods and more will be brought in.

-Peaceful growth of cross-Strait relations on the basis of the 1992 Consensus will be promoted, and China's peaceful reunification will be advanced.

-Coordination and cooperation among major countries will be promoted, friendships deepened, and common development with neighbours will be achieved. Unity and cooperation with other developing countries will be enhanced.

-The success of the annual conference of the Boao Forum for Asia, the Shanghai Cooperation Organization Summit, the Summit of the Forum on China-Africa Cooperation will be assured.

Because 2018 marks the 40th anniversary of China's era of reform and opening up, the word "reform" appears in the work report 97 times, indicating the government's determination to deepen reform.

"This year we will further deepen reform and opening up, optimize the business environment, and stimulate market vitality and creativity. We will push for the high-quality development of the economy," said Huang Shouhong, head of the report's drafting team and director of the State Council research office.

Chinese President Xi Jinping said on Monday that "the focus of high-quality economic development should be placed on transforming and upgrading industries. Efforts should be made to strengthen and improve the real economy," 

Local governments should build on their strengths and tap their potential to develop more emerging, high-end, high-value-added and capital-and-technology-intensive industries, putting in place a multi-dimension and multi-pillar modern industrial mix, Xi added.

（Prasoon Sharma, Director, India's Global Centre for Chinese studies）