SwedCham China Insights for the Week of March 4 - March 8 , 2024

Top news of the week:

Premier chairs State Council executive meeting

March 4, 2024

Premier Li Qiang chaired a State Council executive meeting on March 1, which approved an action plan to promote large-scale equipment renewal and trade-in of consumer goods. The meeting deliberated work on accelerating the construction of a modern infrastructure system and facilitating the integrated high-quality development of the Yangtze River Delta. The meeting also discussed draft amendments to three laws, including one on the promotion of agricultural technologies.

China sets GDP growth target of around 5% for 2024

March 5, 2024

China set an economic growth target of around 5 percent for 2024, according to a government work report delivered by Premier Li Qiang at the opening meeting of the second session of the 14th National People's Congress.

Nation aims to create over 12 million new jobs

March 6, 2024

According to the Government Work Report, 12.44 million people landed jobs in urban areas in 2023 and the average surveyed unemployment rate in urban areas stayed at around 5.2 percent. This year, the government aims to create over 12 million new jobs in urban areas and keep the urban surveyed unemployment rate at around 5.5 percent.

China to offer visa-free travel to travellers from six countries

March 7, 2024

China will adopt a visa-free policy for Switzerland, Ireland, Hungary, Austria, Belgium and Luxembourg on a trial basis, starting March 14, foreign minister Wang Yi said on March 7.

China plans a new private sector promotion law

March 8, 2024

China is planning to formulate a private sector promotion law, aiming to accelerate the creation of a new pattern of development and deepen reform across the board, said the annual work report of the Standing Committee of the National People’s Congress.

Insight of the week:

China’s annual “two sessions” opened in Beijing on March 4 and planned to end on March 11. It is one of the most important watchpoints for analyzing Beijing’s policy outlook.

On March 5, Chinese Premier Li Qiang delivered his first government work report at the opening meeting of the National People's Congress (NPC), China's top legislature, reviewing the work of 2023 and setting the country’s tasks for 2024. According to the work report, China accomplished its major economic and social development targets and tasks of 2023, with GDP expanding by 5.2% last year. In 2024, China aims to achieve economic growth of around 5%. The deficit to GDP has been set at 3%, with the government deficit forecast to rise by 180 billion yuan from 2023 budget figure. According to the report, all restrictions on foreign investment in China's manufacturing will be abolished, and market access restrictions in services sectors, such as telecommunications and healthcare, will be reduced. China will implement measures to ensure national treatment for foreign-funded enterprises. In terms of decarbonization, China aims to cut its energy intensity, or the amount of energy used per unit of economic growth, by 2.5% in 2024, higher than last year's missed 2% goal. The country will prudently work toward peaking carbon dioxide emissions and achieving carbon neutrality. On military budget, China will boost its defence spending by 7.2% this year, which mirrors the rate presented in last year’s budget. China also officially adopted tougher language against Taiwan as it released the budget figures, dropping the mention of "peaceful reunification" in a government report.

China also plans to deepen multilateral, bilateral, and regional economic cooperation, and work toward joining the Digital Economy Partnership Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Notably, on the two sessions, the notion of “modernizing the industrial system and develop new quality productive forces at a faster pace” was emphasized and widely discussed. Such “new quality productive forces include boosting hydrogen power, new materials, biomanufacturing, commercial spaceflight, quantum technology and life sciences, digital economy, and the AI Plus initiative.

On sustainability, China will advance the energy revolution and actively and prudently work toward peaking carbon dioxide emissions and achieving carbon neutrality. The country will also aim to enhance ecological conservation and promote green and low-carbon development, including taking comprehensive steps to improve the environment and boosting the green and low-carbon economy. The NPC announced that the Congress will review a new Ecological Environment Code, which is under drafting, within the year of 2024 as a major legislative move towards the commitment to sustainable development.

One noticeable change this year was China’s announcement that Premier Li Qiang would not brief the media at the close of this year’s parliamentary meeting and he would be the first in three decades to not do that. Moreover, barring special circumstances, Li will hold no such annual press conferences for the remaining term of China's parliament ending in 2027. The premier’s post-parliament news conference was recognized as one of the most widely followed events on China’s economic and policy calendar. The NPC spokesperson suggested the journalists learn about elaborations on policies from press conferences with ministers.