China’s economy sparks worries as annual political meeting approaches

All major decisions will be made in closed-door meetings weeks ago (document)

Beijing China:

China’s annual political conference kicked off in Beijing on Monday, with officials saying the weak economy and youth unemployment were of “high concern” as they laid out plans for the coming year.

Armed police and public security personnel were seen on the streets of Beijing as thousands of delegates attended the annual “Two Sessions” rallies.

The meeting will begin at 3:00 pm (0700 GMT) on Monday with the opening ceremony of the Chinese People’s Political Consultative Conference (CPPCC), which will run until Sunday, March 10 and will be attended by President Xi Jinping and other senior party officials.

At a press conference on Sunday, Liu Jieyi, spokesman for the National Committee of the Chinese People’s Political Consultative Conference, said that “economic topics are of great concern to the more than 2,000 members of the National Committee of the Chinese People’s Political Consultative Conference.”

He said that the same is true for “the employment of young people, especially fresh graduates.” After the Statistics Bureau adjusted its calculation method, by the end of 2023, the official youth unemployment rate will be around 15%.

Monday’s meeting of the Chinese People’s Political Consultative Conference (CPPCC) is relatively low-risk compared with the National People’s Congress (NPC), China’s legislative body, which takes place at almost the same time.

The NPC session will begin on Tuesday and run until March 11, spokesman Lou Qinjian said at a news conference on Monday.

The meetings are not expected to unveil the massive bailout that experts say is needed to stimulate China’s economy, which last year grew at its slowest pace in decades.

Focus on the economy

But Lou Jiwei expressed optimism on Monday, saying Beijing leaders had “sufficient confidence” that the economy would rebound.

He emphasized that China’s economic development has more favorable conditions than challenges.

“The basic trend of economic recovery and long-term growth has not changed,” he said.

But he added that Premier Li Qiang would not hold a press conference at the end of the National People’s Congress, breaking decades of tradition.

Li Keqiang warned in a briefing last year that it would be “not easy” for Beijing to achieve its modest growth targets.

China will also step up its national security efforts, with analysts expecting it to increase its military budget, second only to the United States.

Beijing last year significantly changed a law, broadening the definition of espionage and conducted raids on a series of high-profile consulting, research and due diligence firms.

The legislature’s top body also approved a broad and vaguely worded revision of the state secrecy law ahead of the National People’s Congress session.

“There will continue to be an emphasis on safety,” Lynette Ong, a professor at the University of Toronto, told AFP.

“I do not foresee any major policy changes, such as significant structural reforms, that would alter the trajectory of the economy,” she added.

In name, the NPC actually has little power.

All major decisions will be made weeks ago in closed-door meetings of the Communist Party, away from the cameras of the international media.

But analysts say the topics discussed and the tone of the speeches can provide insight into what keeps China’s rulers awake at night.

“Balancing security with the need to keep the economy moving while addressing other issues is at the heart of policymakers’ considerations,” said Diana Choyleva, chief economist at Enodo Economics.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)