China: Facts, Events, Opinions (14/2023/266)

chiny24.com 2 years ago

Two Sessions

The most crucial political and economical event in China has begun, i.e. the combined yearly sessions

- People's Political Consultative Conference of China (chin. 中国人民政治协商会议), an advisory body of parliament, bringing together representatives of all political parties and social organizations of the country, representatives of all cultural minorities as well as people of discipline or entrepreneurs

and

- The Chinese People's Assembly (chin. 中华人民共和国全国人民代表大会) of the Chinese Parliament.

This year, 2 Sessions are held from 5 to 13 March.¹

The agenda is as usual tense and many decisions will be taken in the course of the meeting, which will have far-reaching consequences.²Not just for China. The most crucial points of parliament this year are:

1. Government study on the implementation of the National economical and Social improvement Plan in 2022 and the establishment of the 2023 improvement Plan. study on the implementation of central and local budgets in 2022 and their assumptions for the current year.³
2. Report on the work of the ultimate People's Court (chin. 最高人民法院) and the ultimate Public Prosecutor's Office (chin. 最高人民检察院) in 2022.
3. Adoption of changes in the legislative law of the People's Republic of China (chin. 中华人民共和国立法法) – 37 amendments have been tabled, the Act on the Rules of Election of Members of Parliament and its Bodies, and the adoption of a improvement plan for government organizations and institutions.⁴
4. A large package of staff resolutions – the election of the president of the country, Vice President, president of the Central Military Commission (the Minister of Defence and Army, traditionally acting as President), the president of the ultimate Court, the Public Prosecutor's Office, the National Supervisory Commission (the equivalent of the NIK), the election of the president of Parliament, his deputies, the members of the Permanent Committee managing the work of the parliament (working throughout the year outside the yearly session and adopting draft laws), the Presidents and deputies of all Parliament's committees. Of course, the Prime Minister will be elected (the erstwhile word ended), Deputy Prime Ministers, Ministers and Directors of Central Authorities, including the fresh head of the People's Bank of China (chin. 中国人民银行).⁵

The beginning event of the parliament's deliberations, and attracting attention from all national and abroad observers, was the speech of outgoing Prime Minister Li KeQiang (chin. 李克强).

Li presented a study on the government's work and implementation of the budget for the erstwhile year and the main assumptions for the current year. The objectives and tasks for this year are widely commented upon, in particular:⁶

- planned GDP growth is about 5%;
- inflation of not more than 3%;
- creation of 12 million fresh jobs (11 million created in 2022);
- urban unemployment of about 5.5%;
- energy consumption per unit of GDP and emissions of the main pollutants are expected to keep a downward trend;
- residents' income growth will in rule be synchronised with economical growth;
- imports and exports have a unchangeable and qualitative improvement and the balance of global payments will be broadly balanced;
- Whereas further implementation of proactive fiscal policies, increased strength of regulation and control of macro policies, strengthened coordination and cooperation between different policies and the creation of common forces to advance high-quality improvement jointly, the budget deficit is expected to stay at 3% of GDP;
- The defence budget will increase in 2023 by 7.2% year-on-year (1.55 trillion RMB, approx. PLN 995 billion).⁷Increase by 0.1% from 2022.
- focusing efforts on expanding home request and consumption;
- speeding up the construction of a modern industrial system, strengthening technological and technological autonomy at a advanced level and self-improvement, enhancing possible in discipline and technology;
- deepen improvement in key areas, links for building a high-quality socialist marketplace economy system;
- maintain agricultural and agrarian improvement priorities and advance comprehensive agrarian regeneration;
- promoting coordinated regional improvement and building regional economical systems, territorial space systems with complementary advantages and advanced quality development, including: Regional economical Integration in Beijing-Tianjin-Hebei (chin. 京津冀区域经济), ChangJiang (Jangcy) River economical Belt (chin. 长江经济带), Greater Bay Area (hon. 大湾区), ChengDu-ChongQing economical region (chin. 成渝经济区).
- greater openness to the outside planet and greater efficiency of resource links in both national and global markets;
- The precedence is green, green and low-carbon development.
- scientific and technological policy should be geared towards building the self-sufficiency of the country in this area – a much better function of government in pooling resources will be utilized to accomplish key technological breakthroughs and companies should be key innovation actors;
- focus on promoting income for residents, improving the mechanics of reasonable wage growth, taking action to improve farmers' income.

In the speech of the outgoing Prime Minister Li, the word “stability” appeared 33 times. And this is the Chinese precedence for 2023: avoiding additional turbulence in a very unstable global situation.

What amazed the assumptions for 2023 presented by Prime Minister Li?

- a very conservative presumption of GDP growth (5%) – min. 5.5 to 6% were expected;
- little space has been devoted to the problems of the real property sector, which has always been powerfully highlighted;
- a strong focus on continuing technological development, innovation and independency from Western components;
- abandoning the rhetoric of the usage of force in the context of Taiwan, and alternatively pointing out that Taiwan is an inalienable part of China, that all efforts will be made to guarantee the improvement of peaceful relations in the Taiwan Strait and to bring about peaceful unification of China (a large contrast to fresh statements by leaders who openly declared the anticipation of utilizing force to accomplish this unification);
- The deficiency of online sector representatives, specified as Tencent founders and CEOs, Baidu, JD, NetEase or XiaoMi, has increased the representation of microprocessor manufacturers, manufacturers of solutions based on artificial intelligence and key, most breakthrough technologies, manufacture representatives (e.g. aviation, automotive, automation, energy, environment, biotechnology, advanced materials or quantum technologies).

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¹The session of Parliament is attended by 2977 delegates from all over the country, together with Members of the People's Political Consultative Conference of China in the deliberations of the 2 Sessions attended by over 5 000 people. Among Chinese parliamentarians this year, 26.5% are women and 16.69% workers and farmers.

²http://lianghui.people.com.cn/2023/n1/2023/0304/c452482-32636594.html

³http://cn.chinadaily.com.cn/a/202303/05/WS64075ca3102ada8b231ec9.html

http://www.gov.cn/premier/2023-03/05/content_5744736.htm

⁴This is, so far, an under-recognised item, and is essential for structural change in the country. As a consequence of the announced changes, the state administration will be completely subordinate to the structures of the party, which will mean their superiority over the former. Xi JinPing is first named Secretary-General of the Central Committee of KPCH (chin. 中共中央总书记), then President/President of the People's Republic of China (中华人民共和国主席), and yet president of the Central Military Commission (chin. 笔记中央军委主席). The order is not random.

https://www.guancha.cn/politics/2023_03_06_682704.shtml

⁵There is simply a complete exchange of management staff at central level and beyond. Apart from Xi JinPing's leader, of course. In this way, the process of organizing organization and administrative staff will be completed, initiated at the XX legislature of KPCH (chin. 中国共产党), which took place in October 2022. This will surely be a line-by-line and based on the leader's thoughts.

⁶http://www.gov.cn/premier/2023-03/05/content_5744736.htm

http://lianghui.people.com.cn/2023/n1/2023/0306/c452482-32637396.html

http://lianghui.people.com.cn/2023/n1/2023/0306/c452482-32637397.html

⁷https://3w.huanqiu.com/a/5e93e2/4Bx2doDPPog

http://m.jrj.com.cn/madapter/stock/2023/03/06075837379383.shtml

This is the eighth consecutive single-digit increase in the defence budget. In 2022 it increased by 7.1% y/y. On average, an army is allocated 1.3-1.4% of GDP in China. At 2.3% of the planet average.

The country's military budget is more than 3 times smaller than the United States' military spending. Americans this year want to spend $858 billion (about PLN 3.8 trillion).

March Legal News

On 1 March, specified fresh regulations shall enter into force, inter alia:¹

- The National wellness Insurance Administration (chin. 国家健康保险管理局) and the Ministry of Human Resources and Social Insurance (chin. 人力资源和社会保障部) introduce a fresh list of reimbursed medicines. It featured 2967 western medicines, 1586 Chinese conventional medicine drugs, and 1381 Chinese pharmaceuticals. The medicines are placed on the list of refunded specifics, after their price and percent of the refund from the budget, by consultation, negotiation and tendering.
- The State taxation Administration (chin. 国家税务总局) introduces uniform forms of taxation evidence (documents) submitted in the calculation of their amount. These include: comprehensive fire-fighting vehicle certificate, public vehicle recognition form (including electrical vehicles), peculiar driving licence, individual household associate certificate, individual identity certificate of industrial and commercial entities.
- The State Committee on improvement and improvement (chin. 国家发展和改革委员会) introduces uniform rules for paying cash for work in the case of projects carried out by central, provincial, municipal, region or municipal authorities. It set out the detailed requirements that investment projects must meet in order to pay in cash for the work carried out, especially as regards construction work in municipal or agrarian areas.
- The China Banking and Insurance Regulatory Commission (chin. 中国银行保险监督管理委员会) announced a list of administrative measures to defend consumer rights and the interests of banking or insurance institutions. These institutions have the primary work for protecting legitimate consumer rights and interests, and consumers are required to be honest and trustworthy with them, in peculiar as regards information and papers presented to the institutions. The institutions should defend the interests of the client, in peculiar with respect to details (‘small print’), to supply full information on the terms of the sale. It is prohibited to usage misleading advertisements, sales of tied products, unjustified fees, etc. The client is entitled to full cognition and protection of his rights regarding this knowledge, independent choice and fair transaction. These principles aim, inter alia, at combating behaviour that violates consumer rights and their legitimate interests as well as at combating actions that undermine established order.
- The Ministry of Education (chin. 教育部) introduces uniform standards of usage of Chinese names in the field of computer discipline and technology. They concern both spoken language and spelling (signs or pinyi – a Chinese evidence in the Latin alphabet). The language is to keep up with the pace of technological development.

Source:

¹https://news.xinmin.cn/2023/02/27/32326608.html

The optimism is growing...

... home and abroad investors. This is due to higher than expected reading of the February Chinese PMI (China Purchasing Manufacturing Index / chin. 中国制造业采购经理指数) – China's industrial economical (activity) index.

In the past period it was 52.6 points, which means the highest increase in reading this index in China in 10 years.¹

This may be the beginning of a trend of a crucial improvement in the economical situation of the country. But the grades are way besides early. This is due to the fact that the PMI growth in February was mainly due to the acceleration of production and the increase in orders after the Chinese fresh Year period.

However, this situation affected importantly higher GDP projections (estimations of abroad financial institutions) – even above 5.5% y/y, erstwhile in December 2022 it was assumed that this could be around 3% y/y.

The Chinese economy seems to be recovering rapidly and moving towards a average improvement trend.