Development vision unveiled in annual legislative session amidst lingering challenges

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In Zhu Guiyan's memory, two snowfall days stand out vividly. One was decades ago, when she was exhausted from a hard day's work as a road cleaner clearing unusually heavy snow. The other was in 2018, when she was once again sweeping snow when the news came that she had been elected as a deputy to the National People's Congress (NPC), the top legislature.

"I was both surprised and honored," the 53-year-old told Beijing Review during her stay in Beijing to attend this year's annual session of the 13th NPC as a member of the delegation from Jilin Province in the northeast. 

In her nearly three decades of work, Zhu, who has now retired, learned firsthand the toil of municipal cleaners to keep cities clean. So as a deputy, one of her objectives is being a voice for them to improve their lot.

People's voices 

Before the First Session of the 13th NPC began in 2018, a total of 2,980 deputies were elected to it from all walks of life. More than 15 percent of them are frontline workers and farmers. Women deputies number 742. Each congress serves a five-year term, and usually holds a plenary session every year. The latest session, the fourth one of the 13th NPC, was held from March 5 to 11.

The lawmakers are elected by people's congresses in the provinces, autonomous regions and municipalities under the direct jurisdiction of the Central Government. The election of deputies from Hong Kong and Macao special administrative regions and Taiwan follow separate rules. The armed forces select their own deputies.

The deputies submit motions and suggestions at the annual session covering a wide gamut of topics, from science and technological development to education, public health and social affairs. Subsequently, new policies are issued incorporating many of their inputs.

In addition, the deputies deliberate various work reports and bills. This year, besides the Report on the Work of the Government delivered by Premier Li Keqiang, high on the agenda was reviewing the Outline for the 14th Five-Year Plan (2021-25) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035.

Growth plan 

"The overarching theme of the 14th Five-Year Plan is improving domestic conditions, boosting the quality of growth and people's livelihood, and strengthening environmental protection," Chen Fengying, a research fellow at the China Institutes of Contemporary International Relations, said.

In a departure from tradition, the new plan did not have a specific growth target figure, but set "a reasonable range." The pandemic contributed to the decision. In the previous five-year plan for 2016-20, the economic growth target was above 6.5 for the period but factors including COVID-19 reduced the actual rate to around 5.7 percent.

However, in his report, Li announced the GDP target for 2021. "A target of over 6 percent will enable all of us to devote full energy to promoting reform, innovation, and high-quality development," he said. "In setting this target, we have taken into account the recovery of economic activity."

According to Sun Guojun, a senior official at the State Council Research Office who participated in drafting the report, the prime factor behind setting the target was the economic recovery since the second quarter last year, with a stronger rebound in the third and fourth quarters. Effective virus control helped China to emerge from the epidemic-induced slump with a 2.3-percent year-on-year growth in 2020, making it the world's only major economy to attain positive growth.

In January, the International Monetary Fund estimated the Chinese economy would grow by 7.9 percent in 2021, thanks to strong COVID-19 containment efforts and "swift policy actions to mitigate the impacts of the crisis."

Sun said year-on-year GDP growth in the first quarter of this year might be relatively high as it will start from a low comparison base, but later it is likely to decrease. However, quarter-to-quarter growth is expected to be relatively stable.

This year's growth target also takes into account the uncertainties in the external environment, including the COVID-19 situation globally, He Lifeng, head of the National Development and Reform Commission (NDRC), said.

With the major economic indicators posting strong performance in January and February, He said China has what it takes to attain this year's goals and tasks. Though the service sector is still struggling, especially accommodation, travel and tourism, the authorities are coming up with aid packages.

One of the objectives for 2021 is to create more than 11 million new jobs in urban areas and maintain the surveyed urban unemployment rate at around 5.5 percent. The increase in the consumer price index (CPI), the main gauge of inflation, will be controlled at around 3 percent.

"The projected targets for growth, employment and the CPI should keep the economy within the appropriate range. These targets are also well-aligned with the annual goals of the subsequent years in the 14th Five-Year Plan period, and will help sustain healthy economic growth," Li said.

Zhao Lixin, a deputy from Shanxi Province in north China and head of the Institute of Environment and Sustainable Development in Agriculture, Chinese Academy of Agricultural Sciences, said what impressed her most when she reviewed the outline and the government work report was "high-quality and sustainable development outweighing the GDP target, and the crucial role of scientific and technological innovation in boosting national development."

Innovation power 

Improving technological self-efficiency and independence, better environmental protection and boosting the dual circulation development strategy in which the domestic market is the main force complemented by the international market are among the key points of the 14th Five-Year Plan.

The government work report promises innovation-driven development and accelerated modernization of the industrial system. "Innovation remains at the heart of China's modernization drive. We will strengthen our science and technology to provide strategic support for China's development," it says.

Analyzing the role of innovation, Yang Yuanqing, a deputy and Lenovo Chair and CEO, said on the demand side, technological innovation is necessary for high-quality development that can meet the growing new consumer demand, unleash the potential of China's massive market, and ensure development. On the supply side, the manufacturing industry should be upgraded and transformed through automation, digitization and smart technologies, he added.

Wider opening up 

The outline says the economy will be opened up wider, free flow of production factors will be improved and institutional opening up expanded.

The government work report also reiterates pursuing high-standard opening up and promoting stable and improved performance in foreign trade and investment. 

China has officially ratified the Regional Comprehensive Economic Partnership (RCEP) agreement, Minister of Commerce Wang Wentao announced on March 8.

The RCEP is the largest free trade agreement signed last year among 15 Asia-Pacific economies including China and the 10-member ASEAN.

Li said the government will also push for signing the investment deal with the European Union, on which negotiations have been concluded, and accelerate free trade negotiations with Japan and the Republic of Korea.

China will also consider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the trade pact that grew from the original Trans-Pacific Partnership, which was scuttled after the U.S. pulled out of it under Donald Trump.

In this year, the first year of the 14th Five-Year Plan period, the negative list for foreign investment will be shortened further and the service sector will be opened in a well-regulated way. A negative list for cross-border trade in services will be formulated and the development of the Hainan Free Trade Port (FTP) advanced, Li said.

The steady growth of imports and exports will be promoted while credit support to small and medium-sized foreign trade firms will be increased. The development of new trade forms such as cross-border e-commerce will be encouraged.

Shao Zhiqing, a deputy from Shanghai, said the establishment of pilot free trade zones and the Hainan FTP in the south demonstrate China's resolve to further integrate with the world economy and contribute more to it.

He said Shanghai can play a special role through hosting the China International Import Expo launched in 2018 as well as its international opening-up hub in the town of Hongqiao. The Hongqiao hub will be an international trade center with a high level of transport management.

"[Shanghai] can serve as a window to the rest of the world and lead domestic resources and capital to go out, and at the same time bring in foreign ones," he said.

Zhang Zhaoan, a deputy from Shanghai and an economist, echoed Shao. Zhang said a higher level of opening up will facilitate high-quality development. "Opening up wider will expose the existing problems in the development mechanisms and promote their reform. On the other hand, an improved domestic development system will further promote the opening-up process. It's a virtuous cycle," he said. 

Green development 

At the 75th Session of the UN General Assembly last year, President Xi Jinping announced that China would peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.

Also at the Climate Ambition Summit last year, the virtual summit marking the fifth anniversary of the Paris Climate Agreement, Xi said by 2030, China would lower its carbon dioxide emissions per unit of GDP by over 65 percent from the 2005 levels. It will raise the share of non-fossil fuels in primary energy consumption by around 25 percent, increase its forest stock volume by over 6 billion cubic meters from the 2005 level, and raise total installed wind and solar power capacity to over 1.2 billion kilowatts.

To accelerate the transition to green and low-carbon development, stricter coal control measures will be implemented during the new plan period. Non-fossil energy will be developed as well as photovoltaic, wind power and other new energy. Advanced technologies and industries such as hydrogen production from renewable energy will be established.

Wang Jinnan, a deputy from Shanxi Province and President of the Chinese Academy of Environmental Planning, said to achieve the goal of emission peaking, the traditional extensive development path has to be dropped and industrial development plans that lead to high emissions have to be avoided. He suggested establishing a carbon dioxide emission statistics and accounting system at the regional and national levels as well as in different sectors and industries. 

Zhao's suggestion was introducing more green technologies that farmers can use conveniently. In rural areas, residual straw and human, livestock and poultry waste can be used to make organic fertilizers that will lower greenhouse gas emissions and improve arable land. That will contribute to rural vitalization, she said.

However, Ning Jizhe, deputy head of the NDRC, pointed out at a briefing that the lingering pandemic, complex and severe global economic condition and still incomplete domestic recovery in terms of consumption and investment will pose challenges. They have to be addressed to achieve sustained and stable recovery of the economy.

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