LiangHui: 2021 Work Report Released

China’s top legislative body, the National People’s Congress (NPC), started its annual meeting on Saturday, with Premier LI presenting the Government Work Report.

The NPC meeting is part of the LiangHui or ‘two sessions’, and the sittings of the NPC and the top political advisory body, the Chinese People’s Political Consultative Conference (CPPCC), are one of the most important events in the country’s calendar.

The LiangHui is a deliberative conference in which China’s top officials set out plans for policies involving the economy, trade, diplomacy, the environment, and the country’s direction as a whole, with delegates tasked with approving or scrutinising the government’s plans for the year ahead. 

The presentation of the Government Work Report is a highlight of the LiangHui, for it provides a window into how the government considers itself to have performed over the last year, where it sees there to be room for improvement, and its policy priorities going forward into a new legislative cycle. 

What was in the 2021 Government Work Report?

Last year was a big year for the Party, and the Work Report is quick to reach the achievements of the centenary of the CPC, the passing of what was only the third resolution on the Party’s history since its founding, victory over poverty, and the goal of building a moderately prosperous society. There was a lot to celebrate in terms of the economy, China’s hosting of the Winter Olympics, and the country going out into the world through the ratification of the Regional Comprehensive Economic Partnership (RCEP) agreement, too. Chinese scientists even got to see parts of Mars that no one had explored before.

But as the Work Report suggests, last year was relatively light compared to the Party’s aspirations for 2022. For a start, this year is a NPC year; they only come around twice in a decade. 

GDP Target

The country’s GDP target has long been a central feature to the Government Work Report—for it has taken on extra significance as a barometer informing Chinese officials, diplomats, analysts, and ordinary people alike of how the government is performing. This year, the government has set a target of 5.5%, which is the lowest economic growth target in more than a quarter of a century. Considering that last year the economy grew at a rate of 8.1%, this year’s target looks very low. But this is why analysts are always quick to quip that the LiangHui provides a rare window into how the Party approaches policymaking – the lower target is most likely a reflection of the government’s unease over global economic uncertainties, not least the ongoing situation in Ukraine.

Other economic targets the government has set itself for the coming year include: creating over 11 million new urban jobs, maintaining an urban unemployment rate of no more than 5.5%, producing over 650 million metric tonnes of grain, and providing a general increase in people’s personal income that matches the country’s broader economic situation.

Covid-19

No government’s review of its legislative performance of late would be complete without an assessment of its handling of Covid-19, and China is no exception. This year’s specific goal concerning Covid-19 is to “respond to Covid-19 and pursue economic and social development in a well-coordinated way.” R&D into mRNA vaccines is to be stepped up and efforts prevented cases coming in from aboard maintained, with a view to ensuring “the normal order of work and life.” The idea that China could change how it approaches Covid-19 was floated on several semi-official channels in the lead up to the LiangHui, but the government has not given any official indication that this is on the cards.

What’s in it for British business?

According to the Work Report, progress has been made in “develop[ing] the underlying institutions for a market system… [while the government] continued [the] implementation of the three-year action plan for SOE reform and supported the development of private businesses.”

What is more, the government has set to “deepen reform and opening up in all aspects” as its fifth policy goal for 2022, placing it behind only those referring to the 20th Party Congress later this year. All of this is in the spirit of “promoting stable growth of foreign trade and investment.”

One disappointing point, however, is that on the Foreign Investment Law, the Work Report states that it will be “fully implemented,” whereas in previous years there was the intention to see the areas within which foreign enterprises could not invest cut further.

What comes next?

The 2021 Work Report is but one of a number of reports accounting for China’s performance over the last year. Attendees will also discuss the NDRC and Ministry of Finance Budget Reports; as well as summaries covering the election of delegates to the NPC; a proposal to spice up the LiangHui and make it more accessible to global audiences; and a series of reports on how the central and local governments spent their money over the last year. It’s going to be a busy week.

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The China-Britain Business Council (CBBC) is the UK’s national business network promoting trade and investment with China. We have been at the heart of the UK-China relationship for 68 years and are widely recognised as the independent voice of British businesses working with China. Our objective is to support the growth of British trade and investment with China and Chinese companies expanding and investing in the UK. Our diverse membership includes leading UK companies and universities, many of the UK’s most dynamic SMEs, and an ever-increasing number of Chinese companies exporting to and investing in the UK.

英中贸易协会（CBBC）是英国促进对华贸易和投资的国家级商业贸易网络。68年以来，我们一直处在行动的核心位置，积极参与两国在每个行业和地区的合作，被广泛认为是英国企业与中国合作的独立声音。我们的目标是支持英国对华贸易和投资的增长，以及中国企业在英国的扩张和投资。我们的会员包括众多英国领先的公司与知名大学、英国最具活力的中小企业，以及越来越多向英国出口和在英国投资的中国企业等。