BEIJING (AP) – China’s No. 2 leader on Friday announced a goal of healthy economic growth and plans to turn that nation into a technology self-sufficient nation amid tensions with Washington and Europe over trade, Hong Kong and human rights.
The ruling Communist Party aims for growth “above 6%” as the world’s second-largest economy bounces off the coronavirus, Prime Minister Li Keqiang said in a speech to China’s ceremonial legislature. About 3,000 delegates gathered for their two-week annual meeting, the most high-profile political event of the year, under intense security and antivirus checks.
The party is moving from fighting the virus that emerged in central China in late 2019 to its long-term goal of becoming a global competitor in cost-effective technologies, including telecommunications, clean energy and electric cars.
The NPC meeting generally focuses on national issues, but is increasingly overshadowed by geopolitics, as President Xi Jinping’s government pursues more assertive trade and strategic policies abroad, represses dissent at home, and confronts to criticism for its treatment in Hong Kong and ethnic minorities.
Also on Friday, the government announced a 6.8% increase in military spending to 1.4 trillion yuan ($ 217 billion) as China faces tension with India and other neighbors. for conflicts territorial claims and ambitions to match the United States and Russia in ballistic missiles, technology of other weapons.
This figure in a budget report published while He was speaking is lower than the double-digit increases of previous years, but exceeds economic growth and represents a sharp increase in real terms at a time when inflation is close to zero. Foreign analysts say total military spending is up 40% higher than the reported figure, which is the second highest in the world after the United States.
China became the only major economy to grow last year, with a low 2.3% expansion over several decades after stopping most of its industries to fight the virus. Growth accelerated to 6.5% from a year earlier in the last quarter of 2020, while the United States, Europe and Japan had difficulty renewing virus outbreaks.
He promised to “work faster to improve our strategic scientific and technological capacity,” seen by communist leaders as a path to prosperity, strategic autonomy, and global influence. These plans are threatened by conflicts with Washington over technology and security that led then-President Donald Trump to impose sanctions on companies such as telecommunications equipment giant Huawei, China’s world’s leading technology brand.
The ruling party’s latest five-year development plan says efforts to make China a self-sufficient “technological power” are the top economic priority this year.
The party considers that “scientific and technological self-sufficiency is a strategic support for national development,” Li said.
The prime minister warned that there are unspecified “weak links” in virus control work and said that “the foundations of economic recovery need to be further consolidated.”
He promised to pursue “green development” after Xi’s promise last year to guarantee China’s maximum carbon emissions by 2030 and achieve carbon neutrality by 2060. This will require sharp increases in net energy. and renewable in an economy that gets 60% of its coal and is the world’s largest source of climate-changing industrial pollution.
“We will expedite the transition from China’s growth model to one of ecological development and promote both high-quality economic growth and high-level environmental protection,” Li said. He promised to reduce carbon emissions and energy consumption per unit of economic production.
The prime minister said Beijing would “improve relevant systems” in Hong Kong “to safeguard national security,” but gave no details on possible changes in the territory, where the ruling party is tightening control after pro-democracy protests. The party used last year’s legislative session to impose a national security law in Hong Kong under which dozens of activists have been arrested.
“We will resolutely protect against interference by external forces in Hong Kong affairs and deter,” the prime minister said.
Legislature spokesman Zhang Yesui said Thursday he would consider unspecified changes to support the “patriots who rule Hong Kong,” fueling Beijing’s fears of shutting down opposition voices in the city’s political process.
Speculation has focused on the possibility of reassigning votes to the 1,200-member committee selected by the Hong Kong leader to exclude the small number of elected local district councilors.
He reiterated official promises to promote the “peaceful growth of relations” with Taiwan, but did not announce any initiative toward a self-governing island that would split with the mainland in 1949 after a civil war. Beijing claims Taiwan as its territory and has threatened to invade it if it tries to formalize its de facto independence. He told him that the mainland would “decidedly deter” any activity “that seeks” Taiwan independence. “
This year’s legislative meeting is held primarily through video links to keep Chinese leaders, delegates and reports separate as an antivirus measure. Last year’s meeting was postponed from March to May due to the outbreak. The official Xinhua news agency said the decision to meet this year’s schedule shows that political and economic life is “back to normal.”
The ruling party previously announced that it had achieved its goal of doubling economic output from 2010 levels last year, which required 7% annual growth. Xi has talked about doubling production again in 2035, which would mean annual growth of about 5%, still among the highest in any major economy.
The ruling party’s desire for prosperity produced by free market competition clashes with its insistence on playing a dominant role in the economy and reducing dependence on other countries.
The prime minister said Beijing will encourage consumer spending on home appliances, cars and other items of great importance to help foster self-sustaining economic growth and reduce dependence on exports and investment.
He told him that the ruling party will promote the development of electric vehicles in China by building more charging stations and accelerating the development of battery recycling. China is the largest electric vehicle market in the world and accounts for about half of world sales.
Beijing will promote “domestic circulation,” Li said, a reference to official pressure on industries to use more components and technology supplied by China and rely less on input from suppliers in the United States, Europe and even Asia. when this increases costs.
This emphasis on self-sufficiency has fueled fears that the world could split into separate industrial spheres in the United States, China, and others with incompatible technologies, less competition, and higher costs.
The goal of “disconnecting them from foreign technology and supply chains” is “more likely to hurt productivity than helping it” and will make it harder to reach the 2035 goal, said Mark Williams. of Capital Economics, in a report this week.