Understanding China at a Special Time

by Swaran Singh

This annual presentation of a detailed government work report by Chinese Premier Li Keqiang marked the masterful start of Chinas “two sessions，” which represented the largest political gathering involving about 5，000 national lawmakers and political advisors. Invariably， this triggered a buzz in the media offering China watchers a window to Chinas future directions. This years report marked an occasion not only to review Chinas major achievements， but also to unveil its vision， guidelines， targets and financial allocations for the ensuing year.

This year， of course， is special for more than one reason. The government work report was awaited rather anxiously， not just in China， but around the world. China remains the growth engine for the world economy that has been facing a deceleration since 2009. It has come to be the largest trading partner for most nations， which makes Chinas economic health critical for the economic well-being of the world. This is especially true as more and more partners are joining the Belt and Road Initiative. The COVID-19 pandemic， however， has put a brake on economic activities worldwide， and Chinas early recovery and return to normal life makes this years government work report all the more instructive for much of the world.

A look at the disheartening projections of the recently released World Economic Outlook 2020 of the International Monetary Fund makes Premier Lis assertion of China achieving an impressive growth rate of 6.1 percent last year seem more inspiring. Impacted by the COVID-19 pandemic， however， China also witnessed a 6.8-percent negative growth for the first quarter of this year， which calls for effective and innovative response. Anticipating a certain deceleration in global demand for Chinas exports， this years report not just alludes to the countrys strategy to improve the consumption willingness and capabilities of domestic residents， but also reiterates commitment to eliminating extreme poverty within its stipulated period， namely， by the end of 2020 – a full decade before the target year of 2030 set by the United Nations Sustainable Development Goals.

Chinas government work report used to catch news headlines for announcing its ambitious economic targets such as its annual GDP growth rate， but this year a specific target is missing for China “will face some factors that are difficult to predict in its development due to the great uncertainty regarding the COVID-19 pandemic and the world economic and trade environment.”However， the report promises to soon formulate the countrys 14th Five-Year Plan for 2021 to 2025. The media have also picked up on the plan to “establish sound legal systems and enforcement mechanisms for safeguarding national security” in the two special administrative regions of Hong Kong and Macao.

Employment generation is highlighted in this years government work report. Indeed， the word “employment” is mentioned about 30 times in the report that promises to create over nine million new urban jobs this year. Instead of announcing any large-scale financial stimulus to achieve this feat， Premier Li has urged governments at all levels to “tighten their belts”and “adopt all possible measures to bolster employment.”

Meanwhile， the report sheds light on Chinas economic engagement with the rest of the world. It promises to work towards joint implementation of the phase one China-U.S. economic and trade agreement and also to further shorten the negative list for foreign investment. As for Chinas continued connectivity and infrastructure building with various developing nations， it promises to focus on quality in the joint pursuit of the Belt and Road Initiative.