Welcome to a special edition of Asia Daily focused on China’s annual Two Sessions (lianghui) meetings! For the next week, The Asia Cable will be providing daily news and commentary updates surrounding the National People’s Congress and the Chinese People's Political Consultative Conference as China sets its legislative agenda for the next year. Tomorrow’s schedule can be found here.
News
Chinese Premier Li Qiang raises threat of ‘external interference’ in Taiwan during first ‘two sessions’ work report. In his first work report during China's "two sessions," Premier Li Qiang emphasized opposition to "external interference" in Taiwan, reinforcing Beijing's stance against Taiwanese independence and promoting cross-strait relations' peaceful development. This focus highlights ongoing tensions and the significance Beijing places on Taiwan's reunification with China, amid increasing international interactions with Taiwanese officials viewed as impediments to unification efforts. The topic of foreign interference in Taiwan has been a scarce mention in previous government work reports. Hayley Wong, South China Morning Post, March 5
China sets an economic growth target of around 5% but acknowledges it will not be easy to achieve. Premier Li Qiang announced China's aim for a 5% economic growth this year during the National People’s Congress, emphasizing the challenges ahead. The focus will be on boosting advanced technology, military strength, and supporting the economy without a major stimulus package. This goal follows a year of 5.2% growth, building on a higher base from the previous year’s 3% rate. Ken Moritsugu and Elain Kurtenbach, AP News, March 5
Big Tech delegates call for more home-made chips and brains to advance AI development. At China's "two sessions" political gathering, technology leaders advocated for increased production of domestic advanced chips and enhanced AI talent development. Lei Jun, Xiaomi's CEO, emphasized starting AI education early and expanding AI-related university programs. The need for self-reliance in computing power, crucial for developing large language models, was also highlighted, reflecting China's strategy to bolster its technological and AI capabilities amidst international competition. Ben Jiang, South China Morning Post, March 4
China ends 30-year tradition: premier's annual press conference. China has canceled the premier's annual post-parliament press conference, a decision reflecting a shift towards more centralized control and possibly an inward focus. This marks the first time since 1993 that such a briefing, pivotal for foreign investors and governments, will not take place. The move is part of broader changes indicating a new approach to managing and communicating economic and policy strategies on the global stage. Liz Lee, Albee Zhang and Yew Lun Tian, Reuters, March 4
Legislature hammers home pro-business stance, says nation’s door is ‘always open to world’. Ahead of the "two sessions" opening, China's legislature commits to fostering a pro-business environment and economic recovery through enhanced legal protections. This includes financial reforms, support for private and foreign businesses, and the introduction of new legislation aimed at high-quality development and opening up. The National People’s Congress (NPC) spokesman emphasized China's openness to the world, dismissing concerns over anti-espionage and state-secret laws affecting foreign enterprises. Frank Chen, South China Morning Post, March 4
Top legislature vows to overcome US tech and science sanctions. China's legislature, during the "two sessions," announced plans to counteract US technology and science sanctions. Emphasizing innovation and self-reliance, the National People's Congress (NPC) spokesman Lou Qinjian outlined the commitment to technological advancement despite international pressures. The focus will be on artificial intelligence and biotechnology legislation, aiming to address ethical, moral, and safety concerns, and reinforce China's legal framework for science and technology development. Zhang Tong, South China Morning Post, March 5
Premier Li Qiang vows China’s ‘new type’ of diplomacy will pursue equality and order. Premier Li Qiang, during the annual National People’s Congress, committed to a foreign policy that promotes a multipolar world and opposes hegemony. This approach comes alongside a modest increase in China's diplomatic budget, aiming to strengthen China's global influence amidst economic challenges. The strategy reflects China's efforts to position itself as a leader in the developing world and navigate complex international relations. Laura Zhou, South China Morning Post, March 5
China raises defense budget by 7.2% as it pushes for global heft and regional tensions continue. China announced a 7.2% increase in its defense budget, signaling its intent to bolster military capabilities amid growing tensions with the U.S., Taiwan, Japan and others over regional disputes. This hike continues the trend of expanding China's high-tech military capacities, including stealth fighters and aircraft carriers. The move reflects China's strategic ambitions to assert its influence globally and regionally, despite economic challenges. Huizhong Wu and Christopher Bodeen, AP News, March 5
China’s ‘two sessions’ 2024: Beijing should restore confidence in internet sector to propel growth, tech delegate says. At China's "two sessions," a call was made to restore confidence in the internet sector, with proposals to strengthen legislative and policy support for tech companies. A delegate highlighted the importance of restoring investor and consumer confidence in this area through enhanced legislative and policy frameworks. This strategy aims at propelling innovation and development, suggesting a need for regulatory clarity and a supportive environment for technology companies to thrive. Ben Jiang, South China Morning Post, March 5
Long Form
Full-text & highlights of government work report. China aims for about 5% economic growth in 2024, continuing proactive fiscal and prudent monetary policies. The deficit to GDP ratio is set at 3%, with over 12 million urban jobs expected and urban unemployment to be kept around 5.5%. Major expenditures include increases in diplomacy, national defense, public security, education, science and technology, and stockpiling essential goods. Challenges from a complex international environment and the aftermath of COVID-19 are acknowledged, alongside domestic and external economic pressures. The report emphasizes the importance of unified national effort, policy focus, and coordination across various sectors to achieve these targets. Jiang Jiang, Rosie Sun, Yiting Zhang,
, March 5.Some positives leading up to the National People’s Congress. Beijing is shifting from investment-led growth, even at the cost of short-term economic performance, through increased power centralization. This includes curbing local government borrowing, halting wasteful projects, and emphasizing frugality. The Central Financial Commission (CFC) now plays a crucial role in financial distribution, potentially tying funds to adherence to central policies. Disciplinary measures have been updated to ensure compliance with Xi Jinping's directives, marking a departure from GDP-centric evaluations. Hunan's initiative to "emancipate" local officials' minds reflects a broader effort to prioritize sustainable development over GDP figures, hinting at a future less focused on fixed growth targets.Jens Presthus,
, March 2Breakdown of Wang Huning's Speech at CPPCC Session. Wang Huning's speech at the CPPCC session focused on the achievements and future priorities aligned with Xi Jinping's directives. Emphasizing the adherence to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the speech outlined the CPPCC's role in economic and social development, political training, and the reinforcement of the Party's leadership. Key areas of focus included improving political training, enhancing political capabilities, and addressing major deployments from the 20th Party Congress. The address highlighted the importance of practicing a people-centered development philosophy and supporting the united front for promoting harmonious relations among various groups. Looking ahead, the emphasis will be on upholding the Communist Party's overall leadership and contributing to the realization of the annual economic and social development goals. Manoj Kewalramani,
, March 5