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China’s National People’s Congress: Key Points China’s National People’s Congress: Key Points
(35 minutes later)
BEIJING — The Chinese government laid out its priorities for the year on Saturday, when Prime Minister Li Keqiang gave his annual state-of-the-nation report to the legislature, the National People’s Congress. Here are highlights from that report and other government documents released at the legislative meeting in the Great Hall of the People.BEIJING — The Chinese government laid out its priorities for the year on Saturday, when Prime Minister Li Keqiang gave his annual state-of-the-nation report to the legislature, the National People’s Congress. Here are highlights from that report and other government documents released at the legislative meeting in the Great Hall of the People.
Mr. Li said China’s economy would grow by 6.5 percent to 7 percent this year. He gave a picture of a government facing some trying times, including — implicitly — problems left by his predecessors.Mr. Li said China’s economy would grow by 6.5 percent to 7 percent this year. He gave a picture of a government facing some trying times, including — implicitly — problems left by his predecessors.
“Domestically, problems and risks that have been building up over the years are becoming more evident,” he said in his report. “Downward pressure on the economy is increasing.”“Domestically, problems and risks that have been building up over the years are becoming more evident,” he said in his report. “Downward pressure on the economy is increasing.”
Still, with the right changes, Mr. Li said, it would be possible for China to achieve an average annual growth rate of 6.5 percent from 2016 to 2020.Still, with the right changes, Mr. Li said, it would be possible for China to achieve an average annual growth rate of 6.5 percent from 2016 to 2020.
Mr. Li devoted a big part of his report to the potentially painful adjustments to industries that will be needed to shore up growth.Mr. Li devoted a big part of his report to the potentially painful adjustments to industries that will be needed to shore up growth.
Gluts of coal, steel, cement and other industrial commodities have been generating heavy pollution but dwindling profits. Mr. Li indicated that China would need to lay off millions of workers in failing factories and mines. But the government will set aside about $15.3 billion to support laid-off workers, he said.Gluts of coal, steel, cement and other industrial commodities have been generating heavy pollution but dwindling profits. Mr. Li indicated that China would need to lay off millions of workers in failing factories and mines. But the government will set aside about $15.3 billion to support laid-off workers, he said.
“We will focus on addressing the overcapacity in the steel, coal and other industries facing difficulties,” he said. “We will address the issue of ‘zombie enterprises’ proactively yet prudently by using measures such as mergers, reorganizations, debt restructurings and bankruptcy liquidations.”“We will focus on addressing the overcapacity in the steel, coal and other industries facing difficulties,” he said. “We will address the issue of ‘zombie enterprises’ proactively yet prudently by using measures such as mergers, reorganizations, debt restructurings and bankruptcy liquidations.”
A big reason the government needs to reduce excess production was laid out by the Ministry of Finance in a report issued Saturday: the income of many state-owned corporations is plunging. The ministry forecast that in 2016 the operating income of China’s biggest, centrally managed state conglomerations — built to be pillars of the socialist economy — would fall by more than 13 percent. The main reason, it said, was “the falling profits in the oil and petrochemical, steel, coal and other sectors.”
Even as the Chinese government is trying to shore up economic growth, it is attempting to reduce smog, polluted water and contaminated soil, topics that have stirred popular anger.Even as the Chinese government is trying to shore up economic growth, it is attempting to reduce smog, polluted water and contaminated soil, topics that have stirred popular anger.
But reducing the pollution blighting many parts of China depends on cutting back on the heavy industry, mining and coal use that underwrite much of the economy.But reducing the pollution blighting many parts of China depends on cutting back on the heavy industry, mining and coal use that underwrite much of the economy.
The government’s next five-year plan, which was issued along with Mr. Li’s report, laid out goals to cut pollution from this year to the end of 2020. The carbon intensity of the economy — the amount of carbon dioxide pollution released to create each unit of growth — would fall 18 percent over those years, according to the plan.The government’s next five-year plan, which was issued along with Mr. Li’s report, laid out goals to cut pollution from this year to the end of 2020. The carbon intensity of the economy — the amount of carbon dioxide pollution released to create each unit of growth — would fall 18 percent over those years, according to the plan.
China surprised many experts when its military budget for the year grew by 7.6 percent, far below the double-digit increases that have become the norm. But the Ministry of Finance report issued Saturday shows that the growth of government revenue is slowing down, along with the general economy. This year, revenues for the central and local governments are projected to grow by 3 percent, about half of last year’s rate of 5.8 percent. For many Chinese citizens, industrial toxins that have soaked into the water and soil are equal, if not greater, worries than smoggy skies. They worry that heavy metals and other pollutants have contaminated so much of the countryside that food is unsafe.
The five-year plan includes proposals to expand monitoring of polluted soil, and to set up hundreds of model farming and construction sites to show how toxic earth can be cleaned up. But a lasting solution may be a long way off.
China surprised many experts when its military budget for the year grew by 7.6 percent, far below the double-digit increases that have become the norm. But the Ministry of Finance report shows that the growth of government revenue is slowing down, along with the general economy. This year, revenues for the central and local governments are projected to grow by 3 percent, about half of last year’s rate of 5.8 percent.
China has come a long way from the period in the 1950s when it absorbed ideas and expertise from the Soviet Union. But a few legacies persist, including a liking for grand five-year plans, and on Saturday the government released its next blueprint, which will guide the country through to the end of 2020.China has come a long way from the period in the 1950s when it absorbed ideas and expertise from the Soviet Union. But a few legacies persist, including a liking for grand five-year plans, and on Saturday the government released its next blueprint, which will guide the country through to the end of 2020.
But there is an important aspect to this old-fashioned planning device where climate change and the planet’s future are concerned. In the latest plan, the government elaborated on its goals to cut carbon dioxide pollution from coal and other fossil fuels, and to expand construction of nuclear power plants, hydropower dams, and solar and wind power.But there is an important aspect to this old-fashioned planning device where climate change and the planet’s future are concerned. In the latest plan, the government elaborated on its goals to cut carbon dioxide pollution from coal and other fossil fuels, and to expand construction of nuclear power plants, hydropower dams, and solar and wind power.