Reactivating the economy and tension with the US, challenges for Xi’s new team

China finished today his National People’s Assembly (ANP, Legislative) in which Xi Jinping revalidated his presidential mandate for another five years with a new Executive that will have to reactivate the economy and manage tensions with USA.

The almost 3,000 delegates who gathered at this annual event, in which opposition to the measures presented is highly infrequent, unanimously approved Xi’s continuation as head of the State and the Central Military Commission, a position equivalent to that of head of the country’s Armed Forces.

Xi, 69, already revalidated his position as general secretary of the ruling Communist Party (CPC) last October, thus reinforcing his absolute control over the three pillars of the regime: the State, the Party and the Army.

Xi’s continuity was not in question, but there was expectation about who would go on to manage the Executive and the main state bodies: the presidency of the PNA itself went to Zhao Leji, a close ally of the president, while Wang Huning , considered the top ideologue of the current CCP, achieved the headship of the country’s main advisory body.

Others close to Xi, such as Ding Xuexiang and Han Zheng, were named vice prime minister and vice president, respectively, to which must be added the appointment as prime minister -it was known in advance- of Li Qiang, number two of the CCP, who debuted before the press today with promises of more openness to the exterior and a better environment for private companies.

Revive the economy:

Reactivating the Chinese economy, battered by the real estate bubble, threatened by demographic decline and with consumption gripped as a result of the three years of isolation due to the extinct zero covid policy, will be Li’s great challenge for the next five years.

In his appearance, in which the questions were agreed in advance, the new ‘premier’ recognized that China must “redouble efforts” to achieve the growth objective set during this ANP, of “about 5%” by 2023, at a time of “uncertainty” and “instability”, he said, and after various sectors, such as technology or education, have faced regulations and investigations in recent years.

Li added that the country will try to “guarantee that growth, employment and prices remain stable” and of “advance high-quality development”and boasted that China is backed by “multiple advantages”as “a large market, a complete industrial system, abundant human resources, a solid foundation for development, and great institutional strength.”

On the sidelines, the ANP decided to keep Yi Gang as governor of the Central Bank and Liu Kun as finance minister, as a sign of that proclaimed stability, despite the fact that both are over 65 years of age.

The annual meeting also approved the creation of a new financial regulatory body and a national data office, a reform of the Ministry of Science and Technology or a 5% cut in central government personnel.

United States, priority:

The tense relationship between Washington and Beijing will set the guidelines for the new Chinese Executive, although Li argued today that “The decoupling between the two is of no interest to anyone.”

For his part, Xi called in his closing speech “work to achieve greater technological self-sufficiency” in response to the measures taken by several countries, especially the US, which according to Beijing seek to make it difficult for them to access high value-added components.

“The West, led by the US, has implemented a comprehensive containment to suppress China”asserted the Chinese leader during one of the internal meetings held during the last week.

Xi also demanded today that the Chinese military become a “a great wall of steel” that protects “stability and development” of the country after the ANP announced an increase in defense spending to the 7.2% this year.

Among the appointments of the annual meeting, it stands out that the Defense portfolio has gone to General Li Shangfu, who was sanctioned in 2018 precisely by the United States after buying weapons from the Russian state company Rosoboronexport.

The ANP also marked the public debut of the new Foreign Minister, Qin Gang, who warned that relations with the US could “derail” yes washington “don’t step on the brake”in addition to defending that China will practice “real multilateralism” in its search for new allies in the so-called “Global South”.

And in the background, but always present, the question of Taiwan, a self-governing island that Beijing claims.

Xi proclaimed today that the “reunification” is “essential” for the modernization of China, stressing that Beijing will oppose the “external forces” and to the “secessionists” who try to declare a hypothetical independence of the island.

Tensions between Taipei and Beijing escalated last summer on account of the visit of the then president of the US Congress, Nancy Pelosi, strongly protested by the Chinese authorities.

Source: EFE