2022-03-21-普华永道-The_last_Two_Sessions_of_13th_NPC_and_CPPCC_raised_confidence_in_China_s_development_in_2022_amid_global_turbulence_17页_2mb

Summary of the 5th Session of the 13th NPC and CPPCC (March 4–11, 2022)

Core Content

The 5th Session of the 13th National People's Congress (NPC) and Chinese People's Political Consultative Conference (CPPCC) took place from March 4 to 11, 2022, marking the final meeting of the 13th NPC and CPPCC before the 20th National Congress of the Chinese Communist Party (NCCCP) in the fall. This session was pivotal in transitioning to the new political and economic framework for 2023 and beyond, focusing on stability, development, and preparation for the 14th Five-Year Plan.

Main Agenda

The session covered a wide range of topics, including:

• Government Work Report: Delivered by Premier Li Keqiang, it outlined the achievements of 2021 and set the economic and social development goals for 2022.
• NPC Standing Committee Work Report: Highlighted legislative progress and reforms in 2021, with plans for continued development in 2022.
• CPPCC National Committee Work Report: Emphasized contributions in areas such as ideological unity, policy suggestions, and consultation with experts and scholars.
• Economic and Social Development Plan: Reviewed and adopted by NPC deputies.
• Budgets Report: Both the draft central and local budgets were examined.
• Legal Supervision and Work Supervision: NPC planned to review reports on the digital economy, financial work, and the implementation of key legislations.

Highlights of the Two Sessions

CPPCC National Committee Work Report

• Focused on the centennial celebration of the Communist Party of China (CPC) and building ideological unity.
• Made policy suggestions on high-quality development, improving livelihoods, ecological civilization, and opening up to the outside world.
• Enhanced credibility and effectiveness of consultation through expert meetings and in-depth discussions.
• Strengthened solidarity and pooled wisdom through talks with non-party members and member lectures.
• Improved the self-development of the CPPCC to enhance its performance.

NPC Standing Committee Work Report

• 17 laws were enacted, 22 laws were amended, and 10 decisions were made on legal and major issues.
• 19 legal cases were under consideration, and 6 decisions were made to ratify bilateral treaties and accede to international conventions.
• The NPC will continue to promote high-quality legislation, improve the legal system of the socialist market economy, and enhance legal supervision.

Government Work Report

• Recognized 2021 as a landmark year, with China achieving its first centennial goal.
• Addressed the challenges of 2022, including the impact of the pandemic, global economic recovery, and domestic pressures such as local outbreaks and supply shocks.
• Set GDP growth target at around 5.5%, slightly lower than 2021’s 8.1% but close to IMF projections.
• Aimed for 11 million new jobs in 2022, with an urban unemployment rate controlled below 5.5%.
• Targeted CPI growth at around 3%, reflecting efforts to combat imported inflation.
• Set grain output above 1.3 trillion Jin (650 billion kg) to ensure food security.
• Proposed a 3% reduction in energy consumption per unit of GDP, with flexibility in the 14th Five-Year Plan.

Implications for the Economy and Businesses

• Stabilizing Macroeconomic Development: China prioritizes maintaining reasonable GDP growth and ensuring economic stability amid global turbulence.
• Boosting Investment: Investment is crucial for economic growth, with a focus on infrastructure and public facilities. The central government will increase transfer payments and use special bonds to fund local projects.
• Deepening Reforms: Three key reform areas include transforming government functions, promoting a unified economy under multiple ownership forms, and reforming fiscal, taxation, and financial systems.
• Innovation-Driven Development: Emphasis on technological innovation and digital economy development to improve the quality of growth.
• Expanding Domestic Consumption: Strategies include increasing residents' income, improving income distribution, and supporting rural consumption through subsidies and e-commerce development.

Key Contact Information

• Elton Yeung – Vice Chairman, PwC China
  Phone: 86 (10) 6533 8008
  Email: elton.yeung@cn.pwc.com

• Thomas Leung – Managing Partner – Markets, PwC China
  Phone: 86 (10) 6533 2838
  Email: thomas.w.leung@cn.pwc.com

• Elton Huang – Managing Partner – Central Markets, PwC China
  Phone: 86 (21) 2323 3029
  Email: elton.huang@cn.pwc.com

• Xing Zhou – Managing Partner – North Markets, PwC China
  Phone: 86 (10) 6533 7986
  Email: xing.zhou@cn.pwc.com

• James Chang – Managing Partner – South Markets, PwC China
  Phone: 86 (755) 8261 8882
  Email: james.chang@cn.pwc.com

• G. Bin Zhao – Senior Economist, PwC China
  Phone: 86 (21) 2323 3681
  Email: bin.gb.zhao@cn.pwc.com
  Website: www.pwccn.com

This summary outlines the key events, themes, and implications of the 2022 Two Sessions, highlighting China's strategic focus on stability, development, and reform.