Li Qiang spent his first national press briefing as China’s new premier trying to inject confidence into battered private firm owners and skeptical investors as the world’s second-largest economy slowly recovers.
(Bloomberg) — Li Qiang spent his first national press briefing as China’s new premier trying to inject confidence into battered private firm owners and skeptical investors as the world’s second-largest economy slowly recovers.
China will protect the rights of entrepreneurs and continue to support private businesses, Li said, in an attempt to address concerns around the industry after regulatory crackdowns in the technology sector and for-profit education companies spooked investors. He also downplayed the importance of the economic growth rate, saying policy focus should be on higher-quality social development and improvement of people’s daily lives.
Li, a longtime associate of President Xi Jinping, was officially appointed on Saturday at the National People’s Congress, the annual parliamentary gathering. The NPC ended on Monday.
In a speech earlier on Monday to mark the start of his precedent-breaking third term, Xi told lawmakers that China must redouble efforts to ensure stability and bolster self-reliance. He also vowed to oppose foreign interference on Taiwan, a veiled reference to increasing American support for the democratically elected government in Taipei.
What to Know:
- Click to read details of China’s new cabinet lineup
- Click to view full text of government reorganization plan in Chinese
- Click here to read more on this year’s NPC, which ends on March 13
- Watch key takeaway so far from this year’s NPC
- A QuickTake explainer on the NPC
Click blue links for latest developments (Time stamps are local time in Beijing):
China’s New Premier Strikes Conciliatory Tone on Ties With US (1:57 p.m.)
Premier Li touted trade ties with the US and questioned the need for decoupling, a sign that Beijing may be trying to put a floor under simmering tensions with Washington.
Li said China and the US were “closely intertwined economically,” adding that both nations benefited from each other’s development and pointing to last year’s two-way trade, which climbed to a record.
Premier Li Downplays GDP Growth, Courts Private Firms (11:58 a.m.)
Li said most people won’t keep their eyes on gross domestic product growth on a daily basis, and are more focused on issues like housing, employment, income and education.
Achieving this year’s growth target of around 5% is “not an easy task” because of multiple risks, the new premier said.
Li, the former Communist Party boss of Shanghai, called for officials at all levels to sincerely care and support the growth of the private sector. They should take the lead to respect entrepreneurs and create a good environment for business creation, he said.
China to Roll Out Policies on Retirement ‘Prudently’ (11:40 a.m.)
China will conduct studies and analysis on retirement and roll out policies in due course “prudently,” Li said when asked about postponing the retirement age.
China Stocks Outperform in Asia on Bets (11:05 a.m.)
Chinese stocks rose on Monday, outperforming the broader Asian market as traders digested the surprise news that China’s economic leadership team would retain several familiar faces.
The moves to keep central bank Governor Yi Gang, Finance Minister Liu Kun and Commerce Minister Wang Wentao in place were pragmatic ones that may boost investor confidence at a time of uncertainty, given the suggestion of policy consistency, analysts said.
Xi Urges Focus on China’s Stability (10:16 a.m.)
Xi called for “reasonable” growth in the economy with a focus on improving the quality of that expansion. Officials should accelerate the building of a new growth framework that prioritizes boosting domestic demand, driving innovation and self-reliance in science and technology, upgrading the industrial sector and promoting low-carbon development, he said.
“Security is the foundation for development, and stability is the precondition for prosperity,” Xi said.
He has used the annual parliamentary gathering to hit back at the US for trying to prevent the country’s rise. Last week, Xi called on the private sector to help overcome “comprehensive containment and suppression by Western countries led by the US,” while his foreign minister warned of the risk of “conflict and confrontation.”
What Analysts Say About Key Economic Officials (9:03 a.m.)
China’s economic leadership team will retain several familiar faces, a surprise decision that suggests an emphasis on policy consistency as the economy’s recovery faces multiple challenges.
That’s according to analysts, who said the moves to keep central bank Governor Yi Gang, Finance Minister Liu Kun and Commerce Minister Wang Wentao in place were pragmatic ones that may boost investor confidence at a time of uncertainty. It’s still not clear who will replace Liu He as President Xi Jinping’s top economic official, although He Lifeng, who was named a vice premier on Sunday, has been widely tipped for the post.
China Key Covid Official Gets Most No Votes (2:39 p.m., Sunday)
The head of China’s top health body received the most “no” votes of cabinet officials confirmed at the National People’s Congress, signaling a level of dissatisfaction among top lawmakers over President Xi Jinping’s draconian Covid Zero policy.
Ma Xiaowei, director of the National Health Commission, received 21 objections and eight abstentions for his reappointment in Sunday’s voting, the most objections among 26 minister-level candidates.
Meet Top Officials Running the Show (2:09 p.m., Sunday)
China’s parliament has formally unveiled the list of top government officials who will be managing the world’s second-largest economy as Xi Jinping begins his third term as president.
The biggest surprise is how few new faces are in the cabinet. Almost half of the 26 officials in that lineup have been in the position since 2021 or earlier, data compiled by Bloomberg News show. The only two new bureaucrats introduced over the weekend at the National People’s Congress were Li Shangfu, the defense minister, and Zheng Shanjie, as head of the economic planning agency.
China Economic Data Show Improvement (12:06 p.m., Sunday)
China’s economic data for January and February, including industrial output and retail sales, have shown notable improvement, Kang Yi, head of National Statistics Bureau, said in a group interview during the annual National People’s Congress meetings.
The government is “very confident” it will achieve this year’s growth target of around 5%, and China is likely to return to its potential growth rate in the long run, Kang said.
US-Sanctioned Aerospace Expert Becomes Defense Head (9:40 a.m., Sunday)
China has named a general sanctioned by the US to be its new defense minister, setting up a potentially awkward encounter if he’s ever paired up with US Defense Secretary Lloyd Austin for a meeting.
General Li Shangfu is set to become Minister of National Defense and State Councilor — China’s equivalent of a cabinet member. Li was targeted by Washington in 2018 for violating US sanctions by allegedly aiding in the transfer of Su-35 combat aircraft and S-400 missile system equipment from Russian arms seller Rosoboronexport to China.
China Retains Yi Gang as Central Bank Chief (9:19 a.m., Sunday)
China retained several of its top economic officials, including central bank Governor Yi Gang, in a surprise move as it looks to navigate the post-Covid recovery.
Yi was expected to step down, having reached the retirement age for ministers and after being left off a list of top ruling party officials last year.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.