China’s annual conclave concludes with focus on boosting ailing economy

New Delhi: China’s “Two Sessions”, the annual week-long conclave of the National People’s Congress (NPC), the country’s legislature, ended on Monday, with focus on addressing multiple economic problems including an ailing real estate sector, sluggish consumption and youth unemployment.
The event, attended this year by 3,000-odd handpicked Communist Party of China (CPC) elites, though ceremonial and opaque, allows broad insights into China’s policies and priorities for the year ahead.
This year, unsurprisingly, the sessions marked sharper consolidation of President Xi Jinping-led CPC’s power and tightening grip on all facets of Chinese life and society. For one, Chinese lawmakers on Monday passed the revised Organic Law of the State Council, China’s cabinet, which, as explained by a spokesperson, was “…a necessary step for the State Council to uphold the Party’s overall leadership and strengthen the all-around improvement of the government”.
The State Council must “resolutely uphold the (Communist) Party Central Committee’s authority and its centralised and unified leadership”.
CPC tightens control over State Council’s functions
The revised law effectively gave the CPC more direct power over the State Council – which oversees 21 ministries and provincial governments – further eroding its power.
“Since taking power in 2012, Xi has established several new central party committees overseeing multiple ministries that report directly to him. Some even encroach on economic and financial policy, traditionally viewed as falling under the premier’s remit,” Reuters said in a report.
No press conference as premier’s profile lowered
A second development added to the narrative on the executive’s erosion of power: This year’s annual legislative session concluded – for the first time in three decades – without the customary press conference by the Chinese premier.
Every year since 1993, it was the one rare opportunity in a year for journalists to interact with a top CPC leader even though the annual event was customarily choreographed.
That the scrapped annual press conference was to be addressed by Premier Li Qiang – the premier heads the State Council – was also an indication of the government body’s apparent downgrade in China’s power hierarchy.
Zhao Leji, the chairman of NPC’s standing committee, addressed the delegates at the closing ceremony at the Great Hall of the People in Beijing. “Under the strong leadership of the Chinese Communist Party Central Committee with comrade Xi Jinping at its core, we must adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our guide and unswervingly push forward the Chinese-style modernisation,” Zhao said.
Economic headwinds as millions seek jobs
To be sure, official statements published during the “Two Sessions” were upfront about the economic headwinds China is facing. “How to promote employment, particularly for young job seekers, is a hot topic widely discussed by national lawmakers and political advisers during this year’s ‘Two Sessions’,” China’s official news agency, Xinhua, said in a report on Monday.
The report did not share the statistics on unemployment but indicated that the situation is grim.
“Over 11.7 million students are expected to graduate from college this year. More efforts should be made to promote employment for young people and provide better guidance and services to help them secure jobs or start businesses,” the Xinhua report said, quoting the government work report that was unveiled last week at the beginning of the parliament session.
China aims to create over 12 million jobs in urban areas in 2024 and keep the surveyed urban unemployment rate at about 5.5%, the report said.
The report added that Beijing will boost investment in science and technology by unprecedented 10% this year, amounting to 370.8 billion yuan (US$51.5 billion).
“Science and technology have taken on unprecedented significance in this year’s budget, with the largest percentage increase of any major area of government spending – more than diplomacy, public security, education and defence – and it marks a big jump from last year’s 2% rise,” Hong Kong-based South China Morning Post said in a report.
The work report, read out by Li last week, also unveiled China’s annual military budget for 2024, which was increased by 7.2% to roughly 1.67 trillion yuan or $230 billion.