Growth is ‘breathing’ in China

The great “People’s Hall” in Beijing hosts for another year the work of the People’s Congress. It is China’s legislature, with 3,000 members called upon to ratify government decisions. It is considered the “largest parliament in the world”, although the deputies have not been elected in free elections. At the beginning of this year’s summit, Chinese Prime Minister Li Keqiang is trying to reassure the audience, talking about the prospects for economic growth in 2022.

“For this year we expect the growth rate to reach 5.5%, while in the urban areas 11 million new jobs are being created and unemployment does not exceed 5.5%,” said Li Keqiang. “At the same time, inflation will be around 3%, while imports and exports will increase.” This all sounds good, but the truth is that for China the growth rate of 5.5% (compared to 8.1% in 2021) is the lowest in 30 years. It is noteworthy, however, that while economic growth is slowing, at the same time military spending is rising by 7.1%.

“Not a word” for Ukraine

Despite the dramatic developments in Ukraine, the Chinese Prime Minister did not even address the issue. Making his annual report in the “People’s Hall” he limited himself to the general remark about an “uncertain and volatile international environment”. Beijing has not condemned the Russian invasion of neighboring Ukraine, while instead stigmatizing US plans for NATO enlargement to the East. Political observers, however, estimate that the crisis in Ukraine will affect, albeit indirectly, the work of the People’s Congress. According to German television, Berlin-based think tank and economist Jacob Guder of the think tank MERICS, “in the future, China will try to better shield itself in those areas in which Russia is currently particularly exposed due to international sanctions.” For example, it will further develop CIPS, which is the Chinese version of the international SWIFT interbank payment system. ”

In the field of foreign policy, Chinese Prime Minister Li Keqiang did not fail to comment on the diplomatic crisis in China’s relations with Lithuania, on the occasion of the recognition of Taiwan, saying that “Lithuania bears sole responsibility for the tension in bilateral relations.” At the same time, he reiterated Beijing’s well-known positions on the Taiwan issue: “We remain committed to the policy of ‘one China’ and the 1992 consensus,” Li Keqiang said. “We support the deepening of relations between the two sides in the Straits of Taiwan and the reunification of China. We are firmly opposed to any separatist activity that leads to Taiwan’s independence, but also to any foreign involvement.”

“Routine” restrictive measures for the pandemic

An optimistic picture is painted by Li Keqiang in the fight against the pandemic. The Chinese Prime Minister admits that from time to time there are local outbreaks of the pandemic, which he cites as one of the main reasons for the halt in economic growth. However, he points out, “the implementation of restrictive measures has now become routine, over 85% of the population has been fully vaccinated and any local outbreaks that occur, are treated quickly and effectively.”

The exit strategy from the pandemic, the restriction of the power of foreign business groups, but also the rights of women are, according to the announcements so far, main priorities for the work of the People’s Congress, which continues until March 15 in Beijing. For 2022, the session of the People’s Congress is considered the most important political event in China, after the autumn congress, at which the re-election of the current president Xi Jinping is decided.

Giannis Papadimitriou (AP, DPA, ARD)

Source: Deutsche Welle