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Premier Li Qiang (right, with President Xi Jinping) will not deliver this year’s closing speech.
As China’s annual parliamentary session drew to a close after a hectic week of meetings, a glaring gap emerged in Monday’s final agenda.
The National People’s Congress usually culminates with the prime minister’s press conference. But this year, and for the rest of the term, the tradition was mysteriously scrapped.
Officials said it was not necessary since there were other opportunities for journalists to ask questions. But many observers saw it as another sign of consolidation and control, in what became a recurring theme in Congress, even as top officials preached openness.
The cancellation of the press conference – for the first time in 30 years – effectively lowers the profile of Premier Li Qiang. Although the event was scripted, it was a rare opportunity for foreign journalists to ask questions and gave the country’s second-in-command some space to flex his muscles.
In years past, it even produced some unexpected moments. In 2020, then-Premier Li Keqiang revealed figures that fueled debate over the government’s claim that it had eradicated poverty.
The diminished attention on the prime minister, along with a shorter congress this year, are signs of an ongoing structural shift within the Chinese Communist Party (CCP), where President Xi Jinping is increasingly amassing power at the expense of other individuals and institutions, he noted. Alfred Wu, an associate professor at the National University of Singapore who studies Chinese governance.
On Monday, congressional delegates also approved a law that effectively tightens the party’s control over the State Council, which is China’s cabinet led by Li.
But to the outside world, the party is keen to project a different kind of image as it battles waning foreign investor confidence and a general malaise in its economy.
Addressing international journalists last week, Foreign Minister Wang Yi insisted that China remains an attractive place to invest and do business.
“China remains strong as an engine of growth. The ‘next China’ is still China,” he said, before citing ways in which “China is opening its doors more.”
This year’s economic plan, presented by Li at the start of the session, laid out plans to open more areas to foreign investment and reduce market access restrictions in sectors such as manufacturing and services.
These measures come after foreign investors were spooked by recent anti-espionage and data protection laws, as well as several high-profile sudden arrests of Chinese and foreign businessmen. Foreign direct investment in China recently fell to its lowest level in 30 years.
“There are fewer political checks and balances, there is no transparency. This is the biggest concern for investors… you can’t predict what is going to happen, so you avoid risk,” Dr Wu said.
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Chinese Foreign Minister Wang Yi declared that China was “opening its doors further”
But last week Wang dismissed such concerns. “Spreading pessimistic views about China will end up harming oneself. Misjudging China will result in missed opportunities,” he said, as he focused on talking about China’s prospects.
Both Wang and Li repeatedly used buzzwords such as “high-quality development” and “new productive forces” to signal a new stage in China’s development, although neither fully explained what they meant. China aims to achieve an ambitious goal of around 5% GDP growth this year.
“Beijing is changing the way it opens up to the world,” said Neil Thomas, a China policy researcher at the Asia Society Policy Institute.
It said it is now focused on attracting foreign high-end technology and advanced manufacturing operations to help Chinese companies in key industries of the future.
“Foreign investment and trade are less important to China’s economy than they once were, but Beijing still wants to avoid a hasty exit that could further shake its growth prospects.”
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China focuses on boosting its high-tech sector
At the same time, officials were keen to emphasize the government’s ultimate goal.
“Stability is of utmost importance as it is the foundation of everything we do,” said Mr Li. Elsewhere in his report, he made clear that while China pursues growth, it would also prioritize greater national security.
Some may question the extent to which China can achieve a prosperous open economy while increasing control.
But “from Beijing’s perspective, there is no contradiction between high-quality development, especially with foreign investment, and greater security needs,” said Jacob Gunter, a senior analyst at Merics specializing in China’s economy.
For example, when it comes to critical technologies where Chinese companies have yet to catch up, it would want to ensure that as many as possible are produced within its borders, Gunter said. This reduces the risk of rivals – such as the United States and its allies – stealing the technology or blocking its exports to China.
Beijing also signaled that it would continue to clamp down on problem areas of its economy, such as the faltering real estate sector and mounting local government debts.
Li promised more measures to defuse financial risks and improve supervision, and vowed to crack down on illegal financial activities.
While these problems have existed for several years, “debt levels and the size of the housing bubble have grown enough that they have to solve them now and they can’t turn back,” Gunter said.
“The economy is doing very poorly right now. The fact that they haven’t backed down on this again indicates that this is a longer-term priority and not something they’re going to back down on.”