Complicated. Grim. Chaotic.
These are the words China’s most powerful leaders have used to describe the state of China’s economy and the international conditions facing the trade dependent nation.
The pressure is clearly on as the National People’s Congress meeting kicks off today in Beijing. The trick will be to meet enough of the US trade demands to end the punishing billion dollar tariffs initiated by US President Donald Trump without appearing to cave in to the West.
Since Chinese President Xi Jinping warned leaders of the Communist Party about ‘complicated and grim’ global conditions for China, with ‘the global sources of turmoil and risks having increased’ in January, the National People’s Congress will likely begin on a solemn tone.
DPA reports that around 3000 members of the country’s largely rubber-stamp parliament will assemble at Beijing’s Great Hall of the People for the discussion, which will continue to 15 March.
The party is anticipated to arrange an annual economic growth target, demonstrating how it will deal with the structural changes to the economy pressed by the US and the continual growth of government debt.
Tariffs slowing down Chinese economy
Chinese and US sides have been negotiating to put an end to the months-long trade war, from when Washington slapped tariffs on US$250 billion (AU$353 billion) worth of Chinese imports. The tariffs have axed China’s economy, growing 6.6% last year, its slowest rate since 1990.
Independent political commentator, Wu Qiang said ‘The economy is slowing down and in a chaotic state’.
‘Therefore, this year’s National People’s Congress will focus on the stability of the economy.’
Wu also stated Premier Li Keqiang is under pressure to make it appear that China is independent from the US’ demands, while also introducing a progressive reform agenda at the same time.
Washington want Beijing to dispose of its support for state-owned operations and key tech sectors, to lower tariffs, and better the protection of intellectual property rights.
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