By Eryk Bagshaw
Beijing has vowed to push ahead with transforming China’s economic growth model, signalling it is prepared to use greater government intervention to reach its new target of 5 per cent.
In a speech to more than 3000 delegates inside China’s Great Hall of the People, Premier Li Qiang declared the Chinese Communist Party (CCP) should rally behind the “historic mission” of President Xi Jinping’s vision for the country’s future.
Chinese President Xi Jinping applauds during the opening session of the National People’s Congress. Credit: Ng Han Guan
Xi, who was mentioned 18 times by Li as he sat in front of the premier at the head of the National People’s Congress in Beijing, has presided over tightening restrictions on the economy, crackdowns on technology companies and rising protectionism as he attempts to redistribute wealth and maintain ideological control over the country.
“All of us in governments at every level must acquire a deep understanding of the decisive significance of establishing Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole, and establishing the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,” Li said on Tuesday.
The rallying cry in Li’s annual report follows a torrid few months for the Chinese government. Beijing has been struck by high levels of youth unemployment, deflation and a property crisis that has seen the world’s second-largest economy struggle to return to its pre-COVID growth rates.
Li acknowledged that 2023 was laced with “difficulties and challenges” but said the government would “push ahead with transforming the growth model, making structural adjustments, improving quality and enhancing performance.”
The Chinese People’s Liberation Army performs during the National People’s CongressCredit: Getty
China’s property and infrastructure-led development has been a boon to Australian businesses, which have seen exports – mostly made up of iron ore and coal – soar to a record high of more than $200 billion last year.
Economists say those exports are likely to remain strong as Beijing continues to rely on the sectors to hit its economic growth target, but ordinary Chinese consumers are becoming increasingly reluctant to spend on luxury items such as wine as their investments fall after years of rapid rises.
Hu Yuexiao, the chief economist at Shanghai Securities, said China was in the middle of an economic transition. “The pursuit of speed has given way to the change in the model of growth,” Hu said.
Wang Huiyao, the founder of the Centre for China and Globalisation, said he was confident that China could achieve its growth target, citing its growing electric vehicle, high-speed rail and 5G internet capabilities. “China is the largest experiment battleground for new productive forces,” he said.
Chinese Premier Li Qiang.Credit: AP
In the largely domestic-focused hour-long speech, Li reiterated Beijing’s position on Taiwan and said China would promote the “peaceful development of cross-Strait relations” while pursuing “the glorious cause of national rejuvenation”.
The CCP claims the democratic island as its own despite never having ruled Taiwan, which it threatens with a daily campaign of harassment. On Tuesday, a dozen Chinese warplanes and six navy vessels were detected near Taiwan by the island’s defence ministry.
Li said the government would continue to invest in military development without outlining a specific figure. Li said the Party would implement Xi Jinping’s thinking on strengthening the military and strategy. “We will remain committed to the Party’s absolute leadership over the people’s armed forces,” he said.
In comments seen as targeted at the United States and its allies, the Premier said China would “remain firm in opposing all hegemonic, high-handed, and bullying acts and upholding international fairness and justice.”
The National People’s Congress speech, which effectively lays out the Chinese government’s annual budget, is one of the few public windows into Beijing’s increasingly opaque decision-making each year. A plenum, where major policy shifts are usually announced, was expected to take place before the congress, but it has not materialised. The congress will now run until Sunday largely behind closed doors.
The restrictions have grown as power has become increasingly concentrated around Xi. On Monday, the congress announced that Li’s annual press conference at the end of the event had been cancelled for the first time in three decades, eliminating one of the few opportunities to ask questions of Chinese leaders each year.
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