The Chinese Prime Minister speaks at the opening of the People’s Congress.
(Photo: AP)
Beijing According to the ideas of China’s government, the world’s second largest economy should grow by around five percent in the current year. That said outgoing Premier Li Keqiang at the opening of the People’s Congress in Beijing. He does expect a significant recovery after the abrupt end of the zero Covid policy.
However, Li also pointed to numerous risks, such as in the real estate market and the financial industry, as well as from “external oppression and containment”. Even if the USA was not mentioned by name, the strict American tech export restrictions should be meant in particular.
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The growth target is “not an ambitious goal,” commented Damien Ma from the US think tank Macro Polo. It indicates that the state leadership is aware of the challenges in 2023. Li’s remarks didn’t contain any really exciting news, Ma said. He assumes that this was planned by the state leadership. “We have to wait for other speeches,” emphasized the expert.
Political observers are also eagerly awaiting the form of the “powerful” government restructuring plan recently announced by Xi Jinping, which is to be presented at the People’s Congress. According to China’s state media, a “far-reaching” reorganization of state and party institutions is planned. This too is believed to serve to expand Xi’s influence.
There is speculation as to whether the once powerful committee for coordinating economic and financial policy will be revived. This could increase party leader Xi’s access to the industry. Because so far he has not achieved his goals, such as curbing the “uncontrolled increase in capital”.
Xi is concentrating more and more power on himself
Since taking office more than ten years ago, the party leader has set up numerous so-called central working groups, which he directs himself. In view of this wealth of power, the people call him “the boss of everything”. It is therefore uncertain how much room for maneuver the new government and the heads of important institutions such as the central bank will have in the future.
For Li Keqiang, it was Li Keqiang’s last major appearance as Premier. Unlike head of state and party leader Xi Jinping, he will be replaced after the end of the regular ten-year term. Li Qiang, the number two in the party, is expected to succeed him on Saturday. Xi’s longtime close follower is said to have economic expertise. He is not considered an ideologue or a simple “yes man” but rather a pragmatic manager.
The People’s Congress with around 3,000 deputies will meet until Monday next week. The focus of the meeting of China’s sham parliament is the formation of the new government. Party leader Xi Jinping will continue to consolidate his power as close associates move into government offices. At the party conference in October, the 69-year-old defied previous age and term limits and anchored his permanent leadership role in the party constitution.
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In addition to the post of prime minister, the deputy prime ministers and top positions in the Ministry of Finance, the powerful Reform and Development Commission (NDRC), the central bank and the banking and securities regulator will also be filled. Former chief of staff and long-time Xi confidant Ding Xuexiang is being discussed as the new executive vice premier.
Economic expert He Lifeng could take over the role of the outgoing Liu He, who led the trade talks with the United States, as another vice premier in charge of economics and finance. According to unconfirmed press reports, long-standing banker Zhu Hexin could replace the previous governor, Yi Gang, at the head of the central bank. However, experts missed the international experience of both personalities.
With agency material.
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