People’s Congress demonstrates unity behind President Xi

More money for the military and an ambitious goal for the economy – this is how the National People’s Congress ends in Beijing. And once again it became clear: President Xi can consolidate his authority.

China’s policy is increasingly aligned with President Xi Jinping. This became clear once again at the People’s Congress in Beijing, which has now come to an end. The 2,900 delegates from across the country almost unanimously approved Xi’s plans.

The People’s Congress approved the new budget with a large majority. This also provides for an increase in defense spending by 7.2 percent – to the equivalent of around 214 billion euros. Last year, China’s military spending increased by the same amount.

The new sharp increase can be seen in the context of the communist leadership’s threats against democratic Taiwan and other Chinese territorial disputes. On the sidelines of the annual meeting, Foreign Minister Wang Yi warned against interfering in the Taiwan issue.

Economy should continue to grow

The delegates also approved the government’s growth target of around five percent. Although the goal is considered ambitious, it came as no surprise to many observers. The message from the People’s Congress on the economic course this year was clear: the leadership wants to stay the course despite weakening consumption and the crisis in the real estate market. The communist leadership does not seem to be planning on providing stimulus with a lot of state money from the watering can for the world’s second largest economy.

Prominent in this year’s report were nebulous terms such as “new productive forces” and “high-quality development”, which arise from the ideological thinking of state and party leader Xi. The long-term goal behind this is to detach the success of the economy from traditional growth drivers and link it to new areas.

To put it simply, China is more likely to focus on artificial intelligence or battery and solar development rather than housing and heavy industry. The country wants to invest more in high-tech and research. To this end, the People’s Republic is also planning to train more specialists in these areas.

Gradually hollowed out

With 2,883 votes, delegates also voted for a change in the law that would give Xi’s party more executive control over the cabinet, the so-called State Council. In recent years, the executive powers of the State Council under the leadership of the Prime Minister, who officially oversees the 21 ministries and the regional governments, have been gradually eroded.

According to legal experts, this continues the shift of more and more power from the state into the hands of the party, so that the government only has to faithfully implement the party’s directives. The amendment emphasizes that the State Council must “resolutely uphold the authority of the Party Central Committee and its centralized and unified leadership” and adhere to Xi’s ideology.

Overall, the week-long event in Beijing with its well-paced meetings offered hardly any surprises – apart from the lack of a final press conference by Prime Minister Li Qiang. As number two in the ruling Communist Party, his responsibilities in the past included economic affairs.

Prime Minister moves into the background

It was the only time in the year that journalists were able to question a top Chinese politician directly – even if only with questions submitted in advance. The decision to scrap the event underscores Premier Li Qiang’s relatively weak status compared to his predecessors.

The National People’s Congress is China’s non-freely elected parliament under the exclusive rule of the Communist Party. At its annual meeting, MPs approve the plans and goals of the Chinese leadership. There are no debates about the plans. The annual meeting of parliamentarians and the parallel consultative conference, which is intended to advise Parliament, have a more ceremonial character.