NPC and CPPCC annual sessions start in Beijing
March 7, 2016 Category NPC '& CPPCC sessions, Weekly
The annual sessions of the National People’s Congress (NPC) – the parliament – and the Chinese People’s Political Consultative Conference (CPPCC) – the advisory body – started in the Great Hall of the People in Beijing on March 5 and March 3 respectively. In his work report to the NPC, Premier Li Keqiang told the Delegates that the target for China’s GDP growth would be between 6.5% and 7%. Last year he set the target at “around 7%” and the actual growth rate was 6.9%, the slowest rate in 25 years. The government hereby indicates that it expects the economic growth rate to further drop moderately. Defense spending would be raised by 7.6%to CNY954.4 billion, the slowest increase in six years. China’s defense budget rose by 10.1% last year. Premier proposed a national fiscal deficit of 3% at CNY2.18 trillion this year, while the target was 2.3% last year. The increase in the deficit would mainly be used to reduce taxes for enterprises and safeguard social welfare. The consumer price index (CPI) target was set at 3%. The government did not propose a specific trade growth target this year after a disappointing performance in 2015 in which exports and imports combined fell 7% in renminbi terms and 8% in dollar terms. China vowed to create more than 10 million new urban jobs and cap the urban registered unemployment rate at 4.5%.
On the monetary side, China has targeted 13% growth in the broad money supply for 2016, up from the 12% target last year. For the first time, the government also included a growth target for outstanding aggregate social finance – setting it at 13% for 2016, echoing comments by People’s Bank of China (PBOC) Governor Zhou Xiaochuan last month that China would lean towards monetary policy easing. China is unlikely to repeat the reckless development of the past five years – China used more cement between 2011 and 2013 than the U.S. used in the entire 20thcentury. On transport links, China plans to boost its high-speed railway network to 30,000 km by 2020. It already had 19,000 km of track by the end of 2015 – more than the rest of the world combined. Even a cross-strait railway line linking Fuzhou in Fujian province on the mainland and Taipei in Taiwan is under consideration.
The NPC Delegates also reviewed the draft of the 13thFive Year Plan (2016-20). This year is the first year of the new plan. Premier Li said that innovation was the primary driving force for the country’s development. China aims to become a world leader in advanced industries, such as semiconductors, and in the next generation of chip materials, robotics, aviation equipment and satellites. R&D spending will be boosted to 2.5% of GDP in the next five-year period, compared with 2.1% of GDP from 2011 to 2015.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world