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China has pledged to expand its economy by “around 5 percent” this year, a modest target that underscores the challenges Chinese President Xi Jinping faces in his third term as he tries to stem increasingly hostile relations with the West to overcome that have hurt an already struggling economy.
China’s lawmaker, the National People’s Congress, opened in Beijing on Sunday with a report by outgoing Premier Li Keqiang seeking to boost confidence in Chinese leadership.
Describing the “turbulent international environment,” “uncertainties,” and “hidden risks” his country faces as it reemerges after years of isolation and paralysis from coronavirus measures, Li praised Xi’s leadership.
“Fight creates brilliance. Hard work wins the future,” Li said in a wide-ranging speech that lasted less than an hour and vowed to expand the country’s ability to counter outside attempts to curb its development.
This year’s Lianghui, or two sessions — the two sessions of an advisory body, the Chinese People’s Political Consultative Conference (CPPCC) and the National People’s Congress, with about 3,000 members representing different sectors of society — comes at a time of deep uncertainty and change for the Country.
The National People’s Congress is expected to approve high-level appointments and a government overhaul that will give Xi and the ruling Communist Party even more control over decision-making previously delegated to government bodies.
Chinese leader Xi begins ‘intense’ overhaul as he cements power
At a party convention in October, Xi broke succession norms to secure a third five-year term, paving the way for decades to stay in power. Late last year, the Chinese leadership under Xi oversaw a chaotic reversal of its years-long “zero-Covid” policy, as well as mass protests on a level not seen since the pro-democracy movement of 1989, culminating in a bloody crackdown around Des Heavenly Peace ended in Beijing.
In February, a high-altitude spotted Chinese balloon hovering over the United States prompted Washington to cancel a planned visit by US Secretary of State Antony Blinken to end spiraling US-China relations. Through export restrictions and sanctions, Washington has restricted China’s access to technologies related to semiconductors and artificial intelligence.
Beijing continues to face accusations from Washington that Beijing is considering supporting Moscow’s war effort because of its friendship with Russia and its reluctance to condemn the invasion of Ukraine.
Alluding to criticism of his foreign policy, Li said China will “resolutely pursue an independent foreign policy of peace.” Without referring to the US restrictions, Li said that China has successfully countered “external attempts” to curb China’s development and will focus on building “self-reliance” in science and technology to become a global tech powerhouse.
Covering familiar territory in the work report, Li reiterated China’s claims to Taiwan’s self-governing democracy and the need to improve the PLA’s military readiness. A budget released Sunday said defense spending would rise 7.2 percent to 1.56 trillion yuan ($230 billion), in line with increases over the past two years.
At the two sessions, officials will announce the government’s biggest leadership reshuffle in a decade, including a new business team grappling with an ongoing housing crisis, rising unemployment, an aging population and falling consumer and investor confidence. China’s economy grew just 3 percent last year, falling short of its 5.5 percent target.
Officials are expected to approve a “reform plan” by the party and state institutions that will give the party more control over target-critical areas such as technology, financial regulation and national security, a priority for Xi.
The new appointments include China’s new premier Li Qiang — a Xi ally and former Shanghai party secretary, who oversaw a chaotic lockdown in the city that shifted national public opinion on the zero-Covid policy.
In his speech on Sunday, Li Keqiang, the outgoing premier who has been sidelined by Xi for most of his tenure, made no mention of the sudden abandonment of politics. Li only said that the country’s coronavirus measures should be more “scientific” and “targeted” going forward.
Parliament on Sunday also proposed changes to a legislative process during an emergency that would allow its permanent decision-making committee to skip several rounds of discussions before passing legislation. The proposal will almost certainly pass and potentially allow a small group of top lawmakers to push through controversial laws with minimal oversight or public feedback.
The National People’s Congress lasts until March 13.
Vic Chiang and Christian Shepherd in Taipei, Taiwan contributed to this report.