Professional Documents
Culture Documents
2016
Contents
Special Report
24
Focus
19
8 China reassures world on growth and reform
New Economy: Growth and Reform
11
China outlines supply-side structural
21 reform plan
Legislature to provide institutional
guarantee for Chinas 2020 goals
Central authority to follow Constitution,
Basic Law of HK, Macao
28
Reforms take shape
34
26 China outlines supply-side
structural reform plan
China defends human rights
in judicial practice
ISSUE 1 2016
32 38
Judicial reform makes justice more China sets to win uphill battle against poverty
40
accessible
34 Parliamentary Exchanges
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Xicheng District Beijing
China defends human rights
100805,P.R.China
in judicial practice
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Defense and Diplomacy tion, democracy and development E-mail: zgrd@npc.gov.cn
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Edited by The Peoples Congresses Journal
37
COVER: The fourth session of the 12th National Peoples
Congress (NPC) convenes from March 5 to 16, 2016 at
Published by The Peoples Congresses Journal
Printed by Beijing Zhong Ke Printing Co., Ltd. in China
China's military spending growth
the Great Hall of the People in Beijng. Ding Haitao
rational, no room for China threat cliche
ISSUE 1 2016 5
Special Report
Chinas NPC
approves 13th
Five-Year Plan
T
he National Peoples Congress (NPC) concluded its Others that the lawmakers approved included the yearly
annual session on March 16. economic and social development plan, the yearly govern-
Zhang Dejiang, chairman of the NPC Standing ment budget and the work report of the NPC Standing
Committee who presided over the closing meeting, Committee.
said the session reviewed and approved the outline of the 13th In his closing remarks, Zhang said, peoples congresses
Five-Year Plan (2016-2020) on economic and social develop- should play an active role in completing the building of a
ment, which requires the implementation of the concept of in- moderately prosperous society in all respects by 2020, while
novative, coordinated, green, open and shared development. exercising their duty.
Among 2,859 NPC deputies who attended the closing Zhang called on NPC deputies to enhance their sense
meeting, 2,778 legislators voted for the 13th Five-Year Plan of responsibility, develop close contacts with the people,
outline, 2,814 for the government work report, 2,600 for the promptly respond to the peoples needs and accept the peo-
work report of the Supreme Peoples Court, 2,560 for the ples supervision.
work report of the Supreme Peoples Procuratorate, and 2,636 The lawmakers also approved the resignation of NPC
for the Charity Law. Standing Committee member Huang Runqiu. (Xinhua)
ISSUE 1 2016 7
Special Report
modernization
President Xi Jinping called for supply-side structural
reform, agricultural modernization and grain security on
March 8.
Xi joined a group of deputies to the National Peoples
Congress from Hunan Province, listening to their opinions
on innovation-driven development, international productiv-
ity cooperation, poverty alleviation, supply-side structural
reform and environmental protection.
The president also extended his greetings to Chinese
women on the occasion of the International Working Wom-
ens Day.
He called for innovative ways of working, pushing for-
ward supply-side structural reform, improving the liveli-
hood of the people, and advancing agricultural moderniza-
tion, in a bid to give the people more sense of benefits.
Advancing the supply-side structural reform is a tough President Xi Jinping joins a group deliberation of deputies from Hei-
battle, the president said, calling for practical efforts to win longjiang Province to the annual session of the National Peoples Con-
gress in Beijing on March 7. Lan Hongguang
the battle, including improving basic public services, and
fixing shortcomings in the peoples livelihood.
Xi asked to strengthen agricultural benefits and competi-
tiveness, improve agricultural production structure on the
basis of market demand, and develop modern agriculture
with the support of science and technology.
Ensuring grain security is a priority for the State, said
the president, adding that grain security policies should be
examined and improved, and production capacity should be
viewed as the fundamental issue.
ISSUE 1 2016 9
Special Report
President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission,
shakes hands with deputies to the 12th National Peoples Congress (NPC) from the Peoples Liberation Army (PLA) as he attends a plenary meeting of
the PLA delegation to the NPC during the NPC annual session held in Beijing on March 13. Li Gang
development, medical reforms, equal access to education, the needy people in the rural and pasture regions are lifted
ethnic unity and targeted poverty relief. out of poverty by 2020, the year when Chinas 13th Five-
He called on authorities to adopt an overall and long- Year Plan draws to a close.
term view on environmental protection and promote green Poverty relief should be targeted and have an emphasis
lifestyles. on education, to ensure the people will not return to pov-
We should protect the environment like protecting our erty, he said.
eyes and treat the environment the way we treat our lives, More efforts shall be made to improve the infrastructure
the president said. in the ethnic regions and develop industries with local char-
He urged concerted efforts to tackle poverty and ensure acteristics and competitive edges, to enhance the regions
ability of self-development, he said.
Xi also emphasized respecting ethnic differences and cul-
tural diversity.
T
he National Peoples Congress (NPC) has an-
nounced its major tasks for 2016, a crucial year in
the journey toward a moderately prosperous soci-
ety by 2020.
Zhang Dejiang, chairman of the NPC Standing Committee,
made the announcement at the NPC session on March 9, at-
tended by President Xi Jinping and other Chinese leaders.
Addressing nearly 3,000 NPC deputies, Zhang said the
committee will make secure a good beginning to the 13th
Five-Year Plan (2016-2020) and the decisive push to a mod-
erately prosperous society.
Zhang said leadership by the Communist Party of China
(CPC) is the essential feature of socialism with Chinese char-
acteristics, and its greatest strength.
The year 2016 marks the beginning of the 13th Five-Year
Plan, the decisive stage in doubling 2010 GDP and per capita
income by 2020.
Reviewing the work of the past year, Zhang said, We have Deputies to the 12th National Peoples Congress attend the second ple-
maintained the correct political direction and ensured that nary meeting of the fourth session of the 12th NPC at the Great Hall of
the Party line, principles, policies, decisions, and plans have the People in Beijing on March 9. Yang Zongyou
been fully and effectively implemented in the work of the
State. We have ensured that the Party can exercise leader-
ship over the State and society through the organs of political work, and exercise direct and specific oversight over the
power. government, both of which are instrumental to maintaining
In 2015, the NPC Standing Committee oversaw enforce- medium-high economic growth, said Zhang Zhaoan, an NPC
ment of the Constitution, made new strides in key areas of deputy and economist with the Shanghai Academy of Social
legislation, supported and promoted reform and made prog- Sciences.
ress toward more effective supervision, said Zhang. Liang Ying, with the Legislative Affairs Commission of the
Our legislative initiatives led to important achievements NPC Standing Committee, said the work report embodied
that have supported and promoted reform and development democracy with Chinese characteristics, of which the Partys
and ensured stability, said Zhang. leadership over the peoples congress is a part.
According to the work report, major tasks for the NPC Liang said the revision of the Legislation Law last year,
Standing Committee in 2016 will include strengthening and which expands legislative power from 49 cities to 288 and
improving legislative work in new circumstances; accelerat- empowers their legislatures to make by-laws, testifies to the
ing the formation of a complete framework of laws and regu- people being their own masters.
lations; and exercising legitimate and effective oversight. The draft of the Charity Law, the first to regulate such or-
The committees legislative agenda for 2016 includes for- ganizations, was submitted to the legislature on March 9. The
mulation of the general provisions of the civil law, along with law would recruit help from the public to realize the 2020
new laws on environmental protection tax, promoting the poverty alleviation target, another pro-growth measure.
film industry and international criminal judicial assistance. Liang said the system of peoples congress ensures that
The NPC Standing Committee will ask the State Council, reform and development advances under a legal framework.
the Supreme Peoples Court and the Supreme Peoples Procu- Meanwhile, the development and optimization of the system
ratorate to strengthen their ties with NPC deputies and open itself is an integral part of modernization.
up more channels for deputies to learn about state affairs and Chairman Zhang Dejiang concluded his report by calling
government work. on fellow lawmakers to rally even closer around the CPC
Under the leadership of the Party, the peoples congress Central Committee headed by General Secretary Xi Jinping.
will support innovation and reform through its legislative (Xinhua)
ISSUE 1 2016 11
Special Report
Zhang Dejiang, chairman of the NPC Standing Committee, delivers a report on the work of the NPC Standing Committee during the second plenary
meeting of the fourth session of the 12th NPC at the Great Hall of the People in Beijing on March 9. Ju Peng
Major Tasks for 2016 the great banner of socialism with Chinese characteristics;
comprehensively implement the guiding principles of the
The year 2016 represents the first year of our decisive 18th National Party Congress and the third, fourth, and fifth
push to finish building a moderately prosperous society in plenary sessions of the 18th CPC Central Committee; follow
all respects. The overall requirements for the work of the the guidance of Deng Xiaoping Theory, the Theory of Three
NPC Standing Committee this year are as follows: hold high Represents, and the Scientific Outlook on Development; fully
ISSUE 1 2016 13
Special Report
Deputies to the 12th NPC arrive at the Tiananmen Square in Beijing on March 9, to attend the second plenary meeting of the fourth session of the 12th
NPC. Zhang Cheng
mittee will promptly request instructions from and submit ance with laws, is an inherent requirement and institutional
reports to the CPC Central Committee on major issues and design of the system of peoples congresses and a practice
tasks in legislation, and will carry out the relevant tasks in that embodies the constitutional principle that all State pow-
accordance with the legally prescribed procedures. We will ers belong to the people. The Standing Committee must ef-
enhance the NPCs role in organizing, coordinating, and pro- fectively exercise the power of oversight granted to it by the
viding overall guidance for legislative work; further develop Constitution and other laws, bearing close reference to the
the mechanisms under which special committees of the NPC new vision of development, reform measures, and require-
and working bodies of the Standing Committee organize the ments for rule of law introduced by the CPC Central Com-
drafting of important laws; and keep the relevant depart- mittee. Taking a problem-oriented approach, the Standing
ments on track in organizing the drafting of laws as sched- Committee will integrate oversight with support; ensure the
uled in the legislative plan. We will work to ensure that legis- effective enforcement of the Constitution and other laws; and
lative bodies play their important role of voicing, balancing, facilitate the efforts of the State Council to carry out admin-
and adjusting the interests of different sectors of society. We istration in accordance with the law and the efforts of the Su-
will improve the systems for legislative debate, hearing, and preme Peoples Court and the Supreme Peoples Procurator-
evaluation; establish a mechanism of debates and consulta- ate to administer justice in an impartial way, so as to advance
tions on any major adjustments affecting different interests structural reform and ensure comprehensive implementation
that may result from legislation; and formulate procedures of the 13th Five-Year Plan.
for collecting and discussing legislative items. We will strengthen oversight over the enforce-
ment of the Constitution.
Exercising law-based, proper, We will intensify publicity and education on the Constitu-
and effective oversight tion, promote the spirit of the Constitution, hold activities
on the national Constitution Day, and organize government
The oversight by the NPC and its Standing Committee over officials elected or appointed by the NPC or its Standing
the work of the State Council, the Supreme Peoples Court, Committee to pledge allegiance to the Constitution. We will
and the Supreme Peoples Procuratorate, and over compli- step up the recording and review of normative documents;
ISSUE 1 2016 15
Special Report
but comply with and serve the Belt and Road Initiative and
Chinas overall development.
We will ensure that a good job We will improve the NPCs information and publicity
is done in the elections of new work. We will channel great energy into publicizing the sys-
tem of peoples congresses; strengthen publicity and explana-
peoples congresses at county and tion of the NPCs work regarding legislation, oversight, deci-
sion making, and election; and intensify activities to illustrate
township levels across the country. how exemplary NPC deputies perform their duties and how
the work of local peoples congresses is carried out. We will
explore new ways of carrying out the NPCs publicity work,
giving full expression to the functions of both traditional and
emerging media, so as to improve the effectiveness of our
tween deputies and the public, establish a sound mechanism publicity initiatives.
for relevant government departments to handle and give We will advance the NPCs theoretical research work, in-
feedback on the comments and requests from the public that creasing our efforts to study and explain the new theories and
have been referred by deputies, and establish broader chan- practices with regard to upholding and improving the system
nels for the expression of social conditions and public senti- of peoples congresses and fully advancing the law-based
ment, so as to give full play to the role that deputies play as a governance of China developed by the CPC Central Commit-
bridge between the government and the people. tee headed by General Secretary Xi Jinping since the 18th
We will improve mechanisms and approaches for examin- National Party Congress. We will enhance the development
ing deputies proposals and handling their suggestions, so as of think tanks for the NPCs theoretical research, and actively
to ensure that the process of examining and handling propos- study the features and underlying laws of the NPCs work.
als and suggestions becomes a process whereby State bodies These efforts will help to provide theoretical and intellectual
maintain close contact with deputies and improve their work. support for the sound performance of the NPC under new
We will ensure NPC deputies play a bigger role in the drafting circumstances.
and revising of laws, and earnestly study and draw upon their We will maintain close ties with and provide guidance
comments and suggestions. We will urge and coordinate the for local peoples congresses. We will urge local peoples
efforts of relevant departments to handle deputies sugges- congresses to fully implement the CPC Central Committees
tions, helping these departments improve their work through guidelines on strengthening the work and development of
the handling of key suggestions. peoples congresses at the county and township levels. We
In line with the CPC Central Committees guidance on will maintain close contact and improve coordination with
strengthening and improving the deputy-related work of the local peoples congresses, and strengthen guidance over their
NPC, we will work to enhance the political integrity and con- work, so as to maximize the overall efficiency of peoples con-
duct of deputies and support electoral bodies in strengthen- gresses. We will hold a national forum on local legislation,
ing their law-based supervision over deputies fulfillment of continue to provide training on the revised Legislation Law,
their duties, so as to ensure that deputies cherish the power and better guide local peoples congresses in their legislative
granted to them by the people, carry out their duties in strict work.
accordance with the law, observe the Constitution and other We will ensure that a good job is done in the elections of
laws in an exemplary manner, and take the initiative in up- new peoples congresses at county and township levels across
holding common moral values. the country. Adhering to the Partys leadership, we will fully
promote democracy, follow procedures in strict accordance
Making further progress in our work on with the law, and strengthen guidance and monitoring of the
foreign relations, information and election work, in order to ensure that elections are held hon-
publicity, and theoretical research estly and election results meet public expectations.
while strengthening self-improvement We will further strengthen the self-improvement of the
Standing Committee, conscientiously uphold the Partys
In accordance with the overall principles and plans of the leadership, and ensure that political discipline and rules are
CPC Central Committee for the countrys diplomatic work, strictly observed. We will work to raise our awareness of the
we will strengthen the planning and management of the need to uphold political integrity, keep in mind the bigger
NPCs foreign relations work, giving priorities to develop- picture, follow the CPC as the core of the Chinese leadership,
ing contact with the parliaments of major countries, Chinas and act consistently with the CPC Central Committee policy
neighbors, and other developing countries. We will expand as we perform our duties and functions in accordance with
the scope of mechanism-based regular exchanges with for- the CPC Central Committees decisions and plans. In addi-
eign parliaments and explore more diverse ways of conduct- tion, we will work toward the establishment of a permanent
ing exchanges. In addition to top-level exchanges, we will effective mechanism for practicing the Three Stricts and
also make full use of exchanges at various other levels, such Three Honests; launch a drive to help our Party members
as those conducted by NPC special committees, friendship better meet the Party standards by studying the Party Con-
groups, and local peoples congresses. We will also promote stitution, the Party regulations, and General Secretary Xi
multilateral contacts with foreign parliaments. We will make Jinpings major speeches; and make unremitting efforts to
sure that these initiatives not only enhance Chinas inter- improve our work style, foster integrity, and create a healthy
national influence and its weight in international discourse, political environment. (Xinhua)
The closing meeting of the fourth session of the 12th National Peoples Congress is held at the Great Hall of the People in Beijing on March 16. Chen Jianli
A
s NPC annual session draws to an end, the four
consciousnesses has emerged as a popular catch- Conforming with CPC Central Committee
phrase frequently underpinned not only by top
leaders, lawmakers, but commentators and news Prior to the parliamentary session, Qiushi Journal, the
anchors. flagship magazine of the CPC Central Committee, published
Observers say the essence of the concept boils down to a commentary on March 1, underscoring the need to pro-
the unwavering conformity with the ruling Communist Par- mote the consciousnesses of the ideology, the whole, the
ty of China (CPC)s leadership, which is vital in Chinas final core and the line.
countdown in building a moderately prosperous society by Faithfulness to the Partys core leadership is character-
2020 as well as for the countrys future destiny. ized by staunch loyalty to the CPC Central Committee, [its]
ISSUE 1 2016 17
Focus
and strategies since the 18th CPC Experts say conforming with the CPC central leader-
ship, safeguarding its authority and ensuring its orders well
National Congress in 2012. implemented are a matter of principle which is vital to the
Party and the nations destiny.
growing the Chinese economy to the worlds second larg- The CPCs innovative theories and thoughts have helped
est and making it an important growth engine for the world to navigate China to success both during the war against
economy. Japanese aggression and the era of reform and opening up,
The consciousnesses of the core and the line, how- according to Shi.
ever, were raised during a recent CPC campaign to improve Its unimaginable to govern the worlds biggest politi-
conducts of officials, focusing on the three stricts and three cal party and a country with a 1.3-billion-strong population
honests. The slogan refers to being strict in morals, power without a centralized and unified leadership, Shi said.
and self-discipline, along with being honest in decisions, Shi noted, however, the call for conformity does not
business and behavior. mean a suppression of public opinions. The line is the col-
Experts say the core stresses the adherence to the Par- lective wisdom of the entire Party and Chinese people.
tys core leadership, requiring the CPCs 87 million mem- Grassroots wisdom in the new plan for the countrys eco-
bers to follow the leadership of the CPC Central Committee, nomic and social development in the next five years, which
especially its Political Bureau and Political Bureau Standing was approved by the national legislature on March 16, has
Committee, and to closely unite around the General Secre- been pooled from various sectors through legislators and
tary, who is the core of the core. political advisors at all levels.
The consciousness of the line demands officials to con- With Chinas diverse level of development and conditions
form with the CPC Central Committee, its General Secretary in different regions and industries, the consciousnesses
as well as to Party theories, guidelines, principles and poli- of the core and the line have been championed to pool
cies. The centralized and unified leadership should be fol- strength from various sectors for a single end, said Zhang
lowed and its authority be upheld. Zhaoan, economist with the Shanghai Academy of Social
The four consciousnesses has been perceived by many Sciences.
as the latest move in the CPC top leaderships series of new A firm core leadership is crucial for laying down a top-
governance concepts and strategies since the 18th CPC Na- level design under the current complex economic situation
tional Congress in 2012. both at home and abroad, Zhang said. (Xinhua)
18 National Peoples Congress of China
China reassures
world on growth
and reform
Premier Li Keqiang delivers a government work report during the opening meeting of the fourth session of the 12th National Peoples Congress at the
Great Hall of the People in Beijing on March 5. Liu Weibing
C
hina has set itself an official economic growth unleash more market vitality, he said.
target of 6.5 to 7 percent this year, reassuring the There is much room for us to boost industrialization, and
world that market-oriented reforms can provide a urbanization represents the largest source of Chinas domes-
stabilizing effect. tic demand, said Li. In Chinas central and western regions,
The annual session of the National Peoples Congress there is enormous room for more effective investment.
closed on March 16, with approvals of the government work Propelled by new growth drivers and upgraded tradition-
report and the 13th Five-Year Plan outline among other bills. al ones, Chinas economy will be able to get through difficul-
Among 2,859 legislators who attended the closing meet- ties and rise to a more promising level, he said.
ing, 2,778 voted for the 13th Five-Year Plan outline, and 2,814 Last year, global economic growth slid to a six-year low.
for the government work report. But still China managed to meet its economic development
The plan outlines the policy framework, priorities and eco- target of around 7 percent.
nomic and social goals for 2016-2020, including an average Instead of resorting to massive stimulus measures, the
annual growth rate of above 6.5 percent. Meeting the targets country has chosen a much harder but sustainable path of
will be crucial to realizing the goal of building a moderately development pursuing structural reforms, said the premier.
prosperous society in all aspects by 2020. The premier said there may be small ups and downs in
As long as we stay on the course of reform and opening the future, but the government is prepared to exercise new
up, Chinas economy will not suffer a hard landing, Premier macroeconomic regulation to ensure steady economic perfor-
Li Keqiang told a press conference after the close of the ses- mance if necessary.
sion. Gu Qingyang, an economist with the National University
There are both difficulties and hopes for Chinas economy. of Singapore, said growth of 6.5 to 7 percent is achievable.
But given the underlying trends and fundamentals, there are Chinas economy is capable of achieving moderate and
more hopes than difficulties, said Li. sound growth given its uniquely big market and huge de-
There is enormous potential in the massive Chinese mand from areas like pollution treatment and urbanization,
market and immense creativity among the people, said the said Gu.
premier. According to Li, the country is determined to press ahead
The supply-side structural reforms China has been pursu- with its reform agenda, and reform and development are not
ing, including streamlining administration, delegating gov- in conflict, as pursuing structural reforms can drive economic
ernment powers and cutting corporate taxes are designed to growth.
ISSUE 1 2016 19
Focus
Major Areas of Work for 2016 In summary, we will press ahead with cutting overcapac-
ity while avoiding massive job losses, he said, claiming that
n
central and local governments have all the resources they
NPC annual sessio GDP growth: 6.5%-7% need to help laid-off employees.
GDP growth: 6.5%-7% To cushion the effect of job losses on families and society,
the central government has allocated 100 billion yuan ($15.34
billion) to help people made redundant find new jobs over the
CPI increase: approx.3% next two years. The fund can be increased if necessary and
the local governments should do their own job accordingly,
New urban jobs:
according to Li.
more than 10 million Li also vowed to cut more red tape to give more play to the
market this year. The central government has already can-
Registered urban celled one third of the items subject to administrative reviews
Steady increase unemployment rate: and approvals since 2013.
in imports and within 4.5% Transformation is never smooth and happy for everyone.
exports With such a big population, it will be difficult for China,
A basic balance Energy said Fredmund Malik, a senior Austrian economist invited to
in international consumption per Beijing to offer advice on the government work report, along
payments unit of GDP: down with 12 other foreign experts in January.
Increases in personal more than 3.4% Chinese leaders are both very competitive and very open-
income basically in step minded, said Malik. I believe these leaders are taking the
with economic growth nation in the right direction. (Xinhua)
P
remier Li Keqiang said on March 16 that since 2013 The streamlining of administrative procedures and the
the central government had reduced the number of delegating of power have been identified as integral to the
items subject to administrative reviews and approv- process of transforming government functions, he said, add-
als by a third, and promised more cuts to come. ing that third-party evaluations showed most businesses and
Three years ago, on the same occasion, I promised that this people were satisfied with the progress.
term of government would cut the number of items that re- Yet, some problems remain. Our people expect more
quire State Council reviews or approvals by one third. We have from the government, the premier said, noting there is still
already fulfilled that target, Li told a press conference after much to be done.
the conclusion of the fourth session of the 12th NPC. This year we are determined to further cut the number of
government approval items and leave more items to the mar-
ket, Li told reporters.
He said there are still too many requirements for certifi-
cates and permits. The number of certificate requirements
will be cut by a half this year.
Redundant procedures have held back productivity and
also restrained consumption, Li said, adding that the gov-
ernment must forge ahead with the reform.
The premier said existing standards must be unified.
Government documents without solid legal ground that have
held back the people or even hurt their interests will all be
cleaned up or abrogated.
The reform will cut government powers, but we are de-
termined to keep doing it until our job is done, as that will
Shi Liping, an employee from an agricultural company in Pingtan, Fujian deliver quick benefits to our people even if the government
Province, shows a newly-acquired registration certificate on March 11.
Fujian Entry-Exit Inspection and Quarantine Bureau takes the lead in the
has to make painful adjustments, said the premier.
reform of the issuance of comprehensive certificates, which will benefit Li hopes that through this process the government will
more than 5,000 enterprises in the province. Lin Shanchuan provide better services to the people. (Xinhua)
C
hairman of the NPC Standing Committee Zhang Hong Kong and Macao should continue in the right devel-
Dejiang said the central authority will act strictly opment direction, consolidate consensus for development,
in compliance with the Constitution and the re- display their unique advantages and functions, and promote
spective Basic Law of Hong Kong and Macao on the one country, two systems practice along the correct
March 6. path, Zhang said.
Zhang made the remarks when joining group deliberations Hong Kongs biggest advantage is its reliance on the in-
with national lawmakers from Hong Kong and Macao, two land areas of the motherland, Zhang told the national law-
special administrative regions. makers from Hong Kong, urging the region to seek develop-
Hong Kong and Macao will experience an important pe- ment, maintain stability and promote harmony, and seize
riod in the next five years with significant opportunities for opportunities in the countrys implementation of the 13th
development, Zhang said, adding that the central authority Five-Year Plan and the Belt and Road Initiative.
will continue to adhere to the principles of one country, two When meeting with lawmakers from Macao, Zhang urged
systems, the people of Hong Kong governing Hong Kong, the the region to take advantage of the countrys 13th Five-Year
people of Macao governing Macao, and both regions enjoying Plan and the central authoritys supportive policies to Macao,
a high degree of autonomy. and bolster a moderately diversified economy. (Xinhua)
ISSUE 1 2016 21
Chinas 13th Five-Year Plan
H
and more importantly, per
aving delivered stellar growth for China for capita income by 2020 from 2010 levels. Another ambitious
more than three decades, ordinary Chinese are goal is to lift all of its people above the poverty line, set at an
set to get their reward in the next five years annual income of 2,300 yuan ($354) for rural residents.
as the government prioritizes improving their Under that overarching goal, per capita disposable income
lives. should increase no less than 6.5 percent.
The draft 13th Five-Year Plan (2016-2020) being reviewed Another way to boost income among the broad population
at the NPC annual session places more emphasis on the pros- is to improve the fairness of income distribution and tax re-
perity of Chinas nearly 1.4 billion people. It is high time that forms.
growth is translated into benefits for the masses. Underpinning all this is stable employment. The govern-
Improving livelihoods is high on authorities reform agen- ment has set a target of adding 50 million new jobs in the
da. Measures listed in the latest five-year plan range from coming five years to make that happen.
Chinas 13th Five-Year Plan is set to embody the ruling Com- necessary, regarding it as a legacy of the planned economy.
munist Party of Chinas (CPC) new concepts, with innovation Long-range plans are ways to communicate to every citizen
foremost in strategies for a balanced, coordinated and sustain- what the nations goals are and what each person needs to do in
able growth pattern. order to achieve them, said Shlomo Maital, a senior researcher
This is the first Five-Year Plan drafted under the current with Technion-Israel Institute of Technology.
Chinese leadership, and also the first since Chinas economy Leading global businesses have long-range strategic plans
entered what policymakers refer to as the new normal, a phase why should countries not have them? After all, a country is a busi-
of moderating growth based more on consumption than the ness, he said. I think other countries have much to learn from
previous mainstay of exports. Chinas planning process.
The plans significance also lies in the fact that the Chinese As Western economists mock Chinas five-year plans as
economy, the worlds second largest, is still facing downward examples of Soviet-era planning, they may want to reflect on les-
pressure and undergoing structural reforms amid fragile global sons drawn from the 2008 global financial crisis, largely blamed
recovery, after its 2015 expansion of 6.9 percent, the slowest in on laissez-faire capitalism, said the researcher.
a quarter of a century. According to Yan, the socialist systems combination of market
And the strategic guideline marks the final countdown to the forces and government supervision through the Five-Year Plan
goal of building a moderately prosperous society by the centen- makes it superior to the capitalist alternative.
nial anniversary of the founding of the CPC in 2021. The ambi- Many Western countries do not have such a plan and even
tious target means doubling GDP and per capita income in 2020 if they have, it is more of a desire, given partisan bargaining. But
from the levels of 2010. Seventy million people need to be lifted China has a set of mechanisms to push implementation, he said.
out of poverty. As the 12th Five-Year Plan concluded with all major targets
Based on extensive research, seminars, public opinions and met, the 13th Five-Year Plan is set to make comprehensive re-
expertise, the program will unveil growth expectations in the vital form arrangements in fields including finance, justice and opening
2016-2020 period for Chinas $10-trillion economy, and ways to up, and to establish binding targets for improving pubic services
meet them. and protecting the environment.
Five-year plans play a navigating role in ensuring the huge Having binding targets will drive the Chinese government
Chinese vessel sails to the expected destination. to meet its promises and better perform its duty to realize social
In the past, the plans focused on microeconomic interven- fairness, said Ding Yuanzhu, a policy consultant at the Chinese
tion. But now, they focus on formulating macroeconomic indices Academy of Governance.
and also planning concerning peoples livelihoods and public The next five years will be characterized by innovation, coor-
affairs, said Yan Yilong, assistant professor in public policy dination, care for the environment, opening to the world, and the
research at Tsinghua University. sharing economy, with medium-high growth and industrial upgrad-
Under the market economy, five-year plans play a supple- ing the two major goals.
mentary role to the market and guide industrial restructuring in Cutting red tape and instigating bold, market-oriented reforms
which enterprises are major participants, Yan said, adding such in sectors dominated by State-owned enterprises are likely to cre-
forecasting can help manage public expectations. ate a more favorable business environment for both domestic and
Chinas first Five-Year Plan was implemented in 1953. With foreign firms.
the plans, Chinas economy maintained miraculous growth in the Over the next five years, pursuing common, international
three decades after the reform and opening-up policy in the late development, China will become more economically integrated
1970s. with the outside world through the Belt and Road Initiative, free
As China is pushing forward the building of the socialist trade zones, and the internationalization of its currency, the yuan.
market economy, some doubt whether the 13th Five-Year Plan is (Xinhua)
ISSUE 1 2016 23
Chinas 13th Five-Year Plan
Workers are occupied on a production line at a workshop under the BAIC Motor in Huanghua city, north Chinas Hebei Province, January 6. Mu Yu
C
hinas 13th Five-Year Plan concerns more than
just its own domestic affairs. The world should sit Innovation, growth
up and pay attention: It will have a global impact,
analysts said. Cui Jicheng, 53, is an oceanologist. By 2019, he plans to
China has been the powerhouse of the world for decades. take a manned deep-sea submersible 10,000 meters down to
In the next five years, ballooning domestic demand, invest- the Mariana Trench.
ment and buying power will further vitalize the global econo- Deep-sea exploration is one of the principle projects under
my, said Chen Fengying, world economy researcher with the the Scientific Innovation 2030 initiative, outlined in the plan.
China Institute of Contemporary International Relations. According to the draft, by 2020, Chinas R&D investment
As China steers itself toward quality development in the will account for 2.5 percent of GDP. The contribution of sci-
next five years, a critical period of transition, the world should entific and technological advances to economic growth will
cast their eyes east, said Chen. rise to 60 percent.
The 13th Five-Year Plan (2016-2020), outlines policies, Investment into semiconductors, chip materials, robotics,
priorities, as well as clear economic and social targets. aviation equipment and satellites, also aim to facilitate scien-
Such clear goals will serve as assurance to foreign entities tific advances.
as it will paint a clear picture of what measures will be taken, China already leads in the fields of Internet, new energy
she said. and AI. It will be an important player in the new round of
ISSUE 1 2016 25
New Economy: Growth and Reform
C
hinas government work report, presented on and innovation.
March 5, 2016, emphasized strengthening supply- While stimulating the demand side tends to be short-lived,
side structural reform through cutting low-end supply-side reform is expected to generate sustainable, qual-
supply while increasing high-end supply and pub- ity growth.
lic products and services. Wang Yiming, deputy director of the development research
Appearing in the government work report shows the gov- center of the State Council, believes Chinas supply-side re-
ernments determination, said Liu Zhibiao, an economics form is an innovation of socialism with Chinese characteristics
professor at Nanjing University, who is in Beijing to attend and is different from Western supply-side economic theories,
the annual session of the National Committee of the Chinese which were generated when Western economies were bogged
Peoples Political Consultative Conference (CPPCC). down by high inflation and low growth.
Chinas three decades of rapid growth were fueled by cap- He said Chinas supply-side reform aims to increase in-
ital investment, exports and consumption usually thought novative abilities and the supply of public products while
of as being on the demand side. However, supply-side re- strengthening policy coordination.
form aims to increase the supply of goods and services by From the supply side, Chinas relaxed family planning pol-
stimulating business through tax cuts, entrepreneurship icy, which allows each family to have two children, is expected
A worker from the Zhenghe Sport Products Co. Ltd. in Donghai County,
Jiangsu Province produces badminton rackets on January 19. Zhang Kaihu
ISSUE 1 2016 27
New Economy: Growth and Reform
I
n his government work report, Premier Li Keqiang
vowed to deepen the reform of the financial sector
in 2016. It includes efforts to improve the financial
regulatory system, further liberalize interest rates and
improve the market-based mechanism for setting the yuan
exchange rate. It would also affect financial institutions,
promote the sound development of the multi-level capital
market, as well as harden the crackdown on illegal fund-
The market is particularly
raising. In addition, it would help develop Internet-based, sensitive to reforms in the
inclusive and green finance. These measures clearly outline
Chinas ambition regarding its financial reform policies.
exchange rate mechanism.
The world is still shaking from the aftershocks of the
2008 global economic crisis that broke out in the United This measure was designed to satisfy the requirement for
States. The eurozones growth is still anemic, and has been the yuan to be included to the currency basket of the Interna-
worsened by the refugee crisis. Japan implemented negative tional Monetary Funds special drawing rights. This market-
interest rates, and the currencies of various emerging econo- based exchange rate formation mechanism has brought
mies are weakening due to expectations of a strong dollar. All Chinas financial reform to a new stage of development.
of these factors intensify uncertainties regarding global and The move, however, also caused the yuan to tumble. On
local economic growth prospects. August 11, 2015, the yuans central parity rate slid 2 percent
That is why the international community is closely watch- against the U.S. dollar, the biggest single-day drop in two de-
ing Chinas financial reform policies, and looking to see cades. After that, the yuan continued depreciating for almost
whether they will affect the countrys economic growth in a three months.
positive manner. Should the reform provide favorable results, How will the yuan fare in 2016? Will China let its currency
surely it will be a good indicator for the world economy. fall further to keep its exports competitive?
Zhou Xiaochuan, governor of the PBOC, said at a news
Stable exchange rates conference on March 12 that stabilizing the yuans exchange
rate is a key focus within the current reforms. In 2015, Chi-
Of all the changes that China could put forward, the mar- nas trade surplus hit a record high of nearly $600 billion,
ket is particularly sensitive to reforms in the exchange rate and Chinas exports accounted for a larger percentage of the
mechanism. worlds total than in previous years. China doesnt need to
On August 11, 2015, the Peoples Bank of China (PBOC), devalue the yuan to keep its exports competitive against that
the countrys central bank, announced plans to improve backdrop.
the yuans central parity system. In the announcement, Zhou claimed that there are multiple reasons for the sig-
the PBOC said that effective from that day, the daily cen- nificant fluctuations in the yuan in previous months. Promi-
tral parity quotes that market makers report to the China nent among those is the downward pressure that the Chinese
Foreign Exchange Trade System before the market opens economy is facing, which has intensified concerns amongst
should be based on a number of factors. The parity quotes market players. Also, volatility in the countrys stock market
should be based on the closing rate of the inter-bank for- made investors nervous, and quantitative easing policies in
eign exchange rate market on the previous day, the supply the European Union and Japan, as well as the interest rate
and demand in the market, and exchange rate movement of hike by the U.S. Federal Reserve, have further stimulated the
major currencies. devaluation of the yuan.
As the exchange rate market gradually returns to a rela- Strengthened financial supervision is one of the key as-
tively normal state, the yuans internationalization will keep pects of the financial work that will take place in 2016, and
going forward, Zhou said. was also included in the government work report. This indi-
The panda bonds market has been booming since last cates that the Chinese Government attaches great importance
year, even while dim sum bonds issued in Hong Kong have to ensuring financial stability and preventing financial risks.
declined since the second half of last year due to the yuans In recent years China has carried out experiments to es-
volatility. This has given the public more cause for concern tablish a multi-level financial market, developing Internet-
about the yuans increasing internationalization. based finance and allowing the establishment of private
Zhou said that both panda bonds and dim sum bonds are banks. But in the financial sector, and especially regarding
results of the yuans globalization efforts. Both are bonds de- Internet-based finance, problems such as financial fraud and
nominated in the yuan, though dim sum bondsnamed after illegal fundraising are frequent occurrences.
the popular Hong Kong cuisineare issued outside of Chinas To address these problems, the government work report
mainland, and panda bonds are issued onshore by non- stated that the government will work to ensure that Internet
Chinese organizations, attracting non-Chinese borrowers. finance develops in line with regulations. It will also tighten
Fluctuations are normal in the financial market, but as panda institutional constraints, safeguard order in the financial sec-
and dim sum bonds are both price sensitive, once exchange tor, and crack down on financial fraud, illegal fundraising and
rates change, the onshore and offshore prices of these prod- unlawful and criminal activities in the securities and futures
ucts will also be affected. markets.
In the midterm, I personally think panda bonds and dim The report also said that the government will move for-
sum bonds both have a nice future, whether they are in the ward with the reform of the stock and bond markets and
onshore or offshore bond markets, said Zhou. increase the rule of law in their development and establish
Yi Gang, vice governor of the PBOC, said that the yuans a catastrophe insurance system. The government will also
internationalization is a market-driven process, during which strengthen the unified, macro-prudential management of
corporations and financial institutions are able to develop foreign debt. All these measures aim to carry out financial
some financial products in an easier way. Exchange rate regulation and control financial risks.
fluctuations in previous periods widened the gap between on- We also encourage research for the improvement of mac-
shore and offshore yuan. As a result, the panda bonds market ro control, macro-prudential policies, financial supervision,
has been booming while the dim sum bonds market keeps protection of financial consumers and financial stability,
dropping. Governor Zhou said. (Beijing Review)
ISSUE 1 2016 29
New Economy: Growth and Reform
L
awmakers passed Chinas greenest Five-Year Plan by 2020, leading cadres will be subject to environmental
on March 16, underscoring the nations commit- protection liability auditing before leaving their posts and a
ment to green development and ushering in a new negative list mechanism will be in place to make key eco-
age for its growth model. function areas off limits to certain industries.
The blueprint, which charts the course for Chinas develop- The facts and figures speak for themselves and should re-
ment up to 2020, places heavy weight on green development, assure those who may doubt Chinas seriousness about green
with 10 out of 25 priority targets related to the environment. development. When China says it puts ecological protection
All the 10 targets are binding and among a total of 13 that first, it is not just lip service.
must be achieved by 2020. The gloves are already off in Chinas fight for green devel-
The emphasis on the environment is in line with the vision opment. A large-scale campaign has been launched to protect
of Chinese President Xi Jinping, who has placed green devel- the Yangtze River, the worlds third longest river and the
opment high on the agenda and called for protecting the en- nations River of Life, with polluting factories shut down,
vironment like we are protecting our own eyes, and treating wetland restored and fishing curbed.
the environment the way we treat our lives. The central government is also drafting a landmark pro-
The determination of the worlds largest developing coun- gram, scheduled to be released this year, to restore the rivers
try and the most populous nation to green its economy impaired eco-system.
should come as a welcome message to the world, which is in China is also considering establishing a national park in
the midst of a stubborn fight against climate change. the Sanjiangyuan (Sources of Three Rivers) Area to protect
The environment features prominently in the economic the headwaters of the Yangtze, Yellow and Lancang (Mekong)
and social development blueprint, with seven of its 80 chap- rivers, one of the most delicate eco-systems in the country.
ters dedicated to the environment, and 19 out of 165 major The newfound zeal for green development comes against
planned projects designated to saving energy, environmental a backdrop of Chinas economic shift from the old growth at
protection and ecological restoration. all cost model, which has left air, water and soil tainted, to a
Under the plan, China will also have its national park sustainable one.
system and a nationwide environment monitoring system After over three decades of double-digit economic growth,
Private sector
challenges the non-public sector faces resulting from a dis-
torted market system.
China will strive to provide reliable, efficient and conve-
on equal footing
nient funding services to small and medium-sized enterpris-
es, and grant more market access to private capital, Xi said.
The authorities will make continued efforts to cut red-tape
and fees in private investment management to reduce corpo-
rate burdens, the president said.
Sun Yinhuan said the countrys private companies have
C
hina does not intend to push a privatization as survived many difficulties since China launched the market-
what Margaret Thatcher did in the 1980s, but its oriented reform about three decades ago, thus are good at
pledge to shore up the non-public sector seems finding opportunities.
clear. Many of them see Chinas Belt and Road Initiative a bo-
It is highlighted as President Xi Jinping recently vowed nanza for business expansion.
to unswervingly encourage, support and guide the countrys Wang Wenbiao, another political advisor, makes money
private sector and create a favorable environment for it. by afforesting the desert. He sees the vast and desolate wil-
Its inspiring and exalting, Chen Zhilie, president of derness in central Asia a treasure trove, believing the eco-
EVOC Intelligent Technology and a political advisor, said at friendly industry is welcomed by all countries.
the ongoing annual session of the Chinese Peoples Political Im sure that Chinas restructuring will offer a trillion-dollar
Consultative Conference (CPPCC) National Committee. chance for the non-public sector, Wang said. (Xinhua)
Political advisor Nan Cunhui, chairman of Chint Group,
a power equipment company, mentioned the anxious senti-
ment among some private companies having meager profits.
Now, our previous anxiety has been cleared, Nan said.
Zhao Haiying, chief risk officer of China Investment Cor-
poration, said an ever-expanding private sector will be one of
the countrys recipes to avoid the middle-income trap, as the
sector contributes 60 percent of economy growth and creates
more than four-fifths of jobs.
Chinas supply-side structural reform is changing the way
of doing business in China, which is a boon for private inves-
tors, Zhao said.
Chinas private companies can prosper into globally com-
petitive giants provided you give them enough space and fit-
ting soil, Zhao said.
Sun Yinhuan, chairman of Yida group, also a political ad- Workers check the quality of rice wine produced by the Haishen Huangjiu
visor, said, Our private entrepreneurs are able to make prof- Group in Anhui Province on March 2. Lujiang County, where the company
its through product innovation, and making new business locates, has adopted a series of measures to boost the development of
local private economy. Zhou Yuedong
models.
ISSUE 1 2016 31
Judicial Reform
Judicial reform
makes justice
more accessible Students from the Taijiang No. 3 Central
Primary School in Fuzhou, Fujian Prov-
ince perform theatrical performance
with the aim to promote anti-graft cul-
ture on November 4, 2015. Song Weiwei
A
total of 65 reform policies implemented in Chinas 31.3 percent over the same period.
courts last year made the judicial system fairer Another key section in judicial reform, the Supreme
for the people, said Chief Justice Zhou Qiang on Peoples Procuratorate (SPP) issued 23 reform documents,
March 13. co-issued eight with central government departments, and
Zhou made his comments when delivering a work report initiated 12 pilot reforms, according to the SPP work report
of the Supreme Peoples Court (SPC) to the National Peoples delivered by Procurator-General Cao Jianming to the NPC.
Congress (NPC). One highlight of the pilot programs was about public in-
Restrictions on case filing were lifted in May last year, terest litigation. Since last July, prosecutors in 13 provincial
meaning plaintiffs no longer need to wait for a pretrial court divisions have been allowed to initiate public interest litiga-
to examine case applications. As a result, 95 percent of court tion cases concerning environmental protection, preservation
cases were accepted on the spot last year. of State assets as well as food and drug safety. So far, 12 cases
Two SPC circuit courts, which opened last year, concluded have been filed directly by prosecutors on behalf of public in-
the trial of 1,653 cases in 2015. They have been dubbed the terest.
SPC on the frontline. Efforts were also made to improve transparency. Through
In addition, three new courts dedicated to intellectual a website supervised by the SPP, prosecuting offices nation-
property rights (IPR) opened in Beijing, Shanghai and wide regularly updated the development of cases and legal
Guangzhou. Collectively, they closed 9,872 cases, with a con- documents so that the involved parties can follow the process
siderable improvement of the quality and accuracy of rulings. and the public can search for relevant information.
The SPC also strengthened enforcement. From January Judicial reform is a profound self-revolution. The reform
2015 to February this year, 4.67 million people who failed to has entered uncharted waters and touched deep-rooted prob-
follow court orders were punished and 3.38 million discred- lems, Zhou said.
ited people were included on a publicly available blacklist. The SPC will establish more circuit courts and improve
Courts nationwide heard 4.67 million cases concerning the fast-track procedures on minor cases this year.
enforcement of court orders, up 37 percent from the previous Cao said the SPP will continue to push the public interest
year. Of these cases, 3.81 million were closed, an increase of litigation pilot project. (Xinhua)
C
hinas judicial authorities said that the country will investigation into Wang Min, vice chairman of the Education,
continue to maintain high pressure on corrup- Science, Culture and Public Health Committee of the NPC,
tion as authorities press on with a sweeping anti- for suspected violation of Party codes of conduct.
graft drive on March 13. According to the SPP work report, almost 80 former Chi-
A total of 22 Chinese ex-officials at ministerial level or nese officials at ministerial level or above had been investi-
above, including former leader Zhou Yongkang, were prose- gated in the three years between 2013 and 2015.
cuted last year while 41 were subject to formal investigations, We will continue to maintain high pressure on corrup-
up from 28 in 2014, Procurator-General Cao Jianming told tion, Chief Justice Zhou said.
lawmakers when presenting the Supreme Peoples Procura- All in all, 54,249 officials were investigated for their in-
torates (SPP) work report for 2015. volvement in 40,834 graft cases in 2015, according to Proc-
Chief Justice Zhou Qiang also said Chinese courts have con- urator-General Cao. The figures represent a slight drop from
cluded trials for Zhou Yongkang and 15 other senior officials, the year before, when 55,101 officials were probed in 41,487
showcasing the Party and the countrys resolute determina- cases.
tion in cracking down on corruption. They include 4,568 officials at division level and above and
More than three years into a high-profile anti-corruption 769 officials at prefecture level and above.
drive targeting both tigers and flies the terms assigned On the tigers end, prosecutors looked into 4,490 graft,
to different officials depending on their ranks and levels of bribery and embezzlement cases that involved more than 1
corruption the popular campaign has so far shown little million yuan ($154,083) each, Cao said.
sign of losing momentum. More than 13,000 officials were investigated and pun-
Just in earlier March, the Communist Party of China (CPC) ished for accepting bribes, in addition to over 8,200 for of-
Central Commission for Discipline Inspection announced an fering bribes.
Visitors watch a video at the anti-graft education base in Nanpi county, Hebei Province on November 4, 2015. Mu Yu
ISSUE 1 2016 33
Judicial Reform
China defends
suspects and to take a more proactive stance in the cross-
border hunt-down.
Lawmakers, present on March 13 for this years an-
human rights in
nual session of the NPC, Chinas top legislature, hailed the
achievements made in the past year in countering corrup-
tion but demanded more efforts to root out the pandemic.
Legislator and lawyer Liu Ling from east Chinas Jiangsu
judicial practice
Province urged authorities to speed up the making of an
anti-corruption law.
We are in pressing need for a special legislation that
could regulate anti-graft operations, protect whistleblowers,
promote officials assets declaration and coordinate work of
disciplinary departments of the Party and the countrys judi-
cial organs, Liu said.
A
Hong Kong legislator Peter Wong Man Kong, meanwhile, more efficient and fairer justice system has im-
called for precision attacks in the anti-corruption drive to proved human rights protection in China with
help with deepening reforms across the board. many wrongful convictions corrected, court pro-
The current anti-graft campaign came as the country ceeding streamlined and lawyers rights better
sets out to deepen reforms and wage its final battle on pov- protected.
erty, thus, the counter-corruption drive should focus on The achievements were outlined in the work reports of the
these fields, he said, highlighting local government elec- Supreme Peoples Court (SPC) and Supreme Peoples Procu-
tions and grassroots agricultural services as top priorities. ratorate (SPP), which were submitted to the annual parlia-
(Xinhua) mentary session on March 13.
ISSUE 1 2016 35
Defense and Diplomacy
C
hinas recent flurry of diplomatic activity has
surprised some international observers and been
widely welcomed around the world, serving domes-
tic interests while expanding global participation.
As the country enters a decisive five-year developmental
phase, diplomacy has become more meaningful in achieving
the strategic blueprint.
On the sidelines of the annual legislative session, Foreign
Minister Wang Yi met the press on March 8 and talked about
matters ranging from the South China Sea to the Korean
Peninsula.
Horizons new
China has been actively breaking new diplomatic ground
under the leadership of President Xi Jinping with new
thoughts, policies and measures, Wang said.
We are on the path to major-country diplomacy with
Chinese characteristics, helping realize the Chinese Dream
Chinese Foreign Minister Wang Yi answers questions at a press confer-
of national rejuvenation and build a community of common ence on the sidelines of the fourth session of the 12th National Peoples
destiny for all mankind, Wang said. Congress in Beijing on March 8. Wang talked about Chinas foreign
President Xi delivered a New Year message asserting Chi- policy on international and regional issues. Li Xin
nas new role on the global stage.
The world is so big and faces so many problems, Wang
said on the press conference, quoting Xi. The international
Regional issues on such as the
community wishes to hear Chinas voice and Chinas solu- South China Sea and the Korean
tions; China cannot be absent.
The Chinese currency, renminbi, has been included into Peninsula require careful handling.
the International Monetary Fund basket of reserve curren-
cies and China became in January a member of the European and most open seaways, he said.
Bank for Reconstruction and Development, both of which China is acting in line with international law by refusing
indicate Chinas rising presence in global financial activities. to accept an arbitration claim filed over the South China Sea
We are not trying to build a rival system, Wang said, on by the Philippines, whose obstinacy is clearly the result of
the contrary, we are trying to play a bigger role in the exist- behind-the-scenes political manipulation.
ing international order. On the Belt and Road, Wang declared that the initiative
should not be seen as Chinese expansionism, but rather as
Neighborhood watch an exercise in opening up. The initiative has already brought
forth the Asian Infrastructure Investment Bank and im-
Regional issues on such as the South China Sea and the proved industrial cooperation between China and nearly 20
Korean Peninsula require careful handling. countries.
China will continue to advocate denuclearization of the
Korean Peninsula, and has both the responsibility and ca- Multi-polar world
pability to implement the United Nations Security Council
resolution, Wang said. China and the United States are building a new model of
Wang said of the South China Sea, Freedom of naviga- major-country relationship without confrontation or conflict,
tion does not mean doing whatever you want. based on mutual respect and win-win cooperation, Wang
The South China Sea remains among the worlds safest said.
C
hinas plan to raise its defense budget this year meddling in Chinas internal affairs.
by a six-year low rate of 7.6 percent is yet another Second, thanks to the Western arms embargo against Chi-
rational move in favor of economic development in na, Beijing has no choice but relying mostly on itself to carry
the country, which leaves no room for the China out its defense modernization from scratch, which surely
threat cliche hyped up by certain Western powers. requires relatively high military spending. However, even
It is remarkable that China, the third largest country by after the increase, the budget is still only about 1.5 percent of
land size, is defending the worlds largest population with Chinas GDP, which is lower than the average level of 2.6 per-
only 6 percent of what the United States spends on defense cent worldwide. The rate in the United States is 4 percent.
per capita. Nevertheless, Western media are criticizing the Third, with increasing intrusion of warships and planes
increase in Chinas defense budget with groundless charges. into Chinas territorial waters and space, the United States
The fact is, even with the lowest increase since 2010, and some of its allies are continuously challenging Chinas
Chinas military budget is still less than one third of that of bottom line in the name of freedom of navigation. China
the United States, which dwarfs the combination of all eight cannot fend off these challenges merely with sampans and
other countries ranking after it in terms of defense spending. telescopes. Its armed forces, which have never incited war
The criticism is simply a calculated ballyhoo directed by with anyone, need to be modernized with a reasonable mili-
the West to defame China and to portray China as a simmer- tary budget growth.
ing threat which it needs as an excuse to contain with a larger For all that, the rise of Chinas defense budget is moder-
military budget. ate in nature, and anyone badmouthing it is actually selling
Should the West take off its tinted spectacles, it could eas- something, either the China threat cliche or the illusory
ily find that the uptick is just a normal and rational budget Chinese hegemony.
adjustment for a country that pursues a defensive national The defaming campaign targeting China clearly shows
defense policy, and that has a land larger than the United that Washington and some of its allies are taking a dangerous
States and territorial waters much larger than Mexico in size isolationist approach on the issue of Chinas development. By
to defend. depicting China as a hegemony seeker, the incumbent jugger-
The justification of the rise hinges on three points. naut is playing a game of thief crying Stop thief.
First, defending ones own territory with a proper budget It is highly advised that Western powers, particularly
is a sacred right endowed by the international law to all coun- the United States, expand their strategic horizon and con-
tries, not excluding China. Therefore raising budget accord- template the promising future with Sino-West cooperation
ing to defense needs is purely part of Chinas internal affairs. instead of confrontation. That is a mission neither sides can
By throwing bricks from the outside, the West is actually afford to lose. (Xinhua)
ISSUE 1 2016 37
Poverty Alleviation and Social Reform
The photo taken on December 19, 2015 shows the Yangjia Bridge in Danzhai County, Guizhou Province. Guizhou has launched a highway project that
connects all the counties in the province. Wu Dongjun
F
ew of the over 55 million people living in Chinas learning difficulties, and he, himself, was too old to work in a
underdeveloped rural areas have any idea of how factory. The whole family depended on government aid.
the NPC annual session will soon change their lives Three years ago, the local government loaned him three
for the better. ewes. Under his care, they bore seven to eight lambs every
According to the government work report delivered by year.
Premier Li Keqiang on March 5, the central government will The family returned the original ewes in 2015, and they
increase its poverty alleviation budget by 43.4 percent this have survived on the offspring ever since.
year, lifting at least 10 million people out of poverty by the The story was shared with legislators from across China,
year end. sitting together at the Great Hall of the People in Beijing, as
Last year, 14.4 million rural residents left poverty behind. an example of a successful poverty alleviation initiative.
Li Jinggao, 63, from eastern Jiangsu Province was one of The central government aims to lift 55 million rural people
them. out of poverty in the coming five years, in order to complete
His wife has suffered from ill-health for years, his son has the building of a moderately prosperous society by 2020.
The picture taken on November 15, 2015 shows that farmers sort eggs at Top: Shabby houses that villagers lived in Xiaoshanyijia Village in Yun-
a chicken farm at Wuliping Village in Bijie, Guizhou Province. The city of nan Province.
Bijie has adopted targeted poverty relief programs to help local farmers Down: New buildings in Xiaoshanyijia Village. Photos by Yang Zongyou
to shake off poverty. Pan Yulong
China has lifted 700 million people out of poverty over the
past four decades. A total of 95.5 million rural people over-
came poverty from 2011 to 2014, according to official data.
China has lifted 700 million However, a slower economy, decreasing natural resources,
environmental degradation and repoverty (the return to
people out of poverty over the poverty) have put pressure on achieving the target, Fan said.
past four decades. Economist Li Yining shared a different story during the
parliamentary session. He said some black goats were do-
nated to poor farmers but they were slaughtered for food.
Instead of just giving we should make training a prior-
The leadership have promised not to leave a single fam- ity, Li said.
ily behind. The 13th Five-Year Plan, which marks priorities for na-
In November, 22 heads of provinces, autonomous regions tional development from 2016 to 2020, proposes support for
and cities from central and western China signed a responsi- poor villages to develop their own featured products and ser-
bility agreement with the central government, agreeing to be vices.
evaluated. In the plan, e-commerce was highlighted as a key tool to
Legislators attending the NPC annual session have also enable villagers to sell their wares; photovoltaic technology
voiced their commitment to the campaign. to boost infrastructure construction; and rural tourism to at-
The remaining 55 million are the poorest and most dif- tract more visitors.
ficult group, said Fan Xiaojian, member of the 12th National Multiple measures concerning migration, training, educa-
Committee of the Chinese Peoples Political Consultative tion, environmental protection and subsistence security have
Conference. been implemented, Fan said. I believe the scheduled poverty
Fan is leading a State Council panel on poverty alleviation. reduction goals will be achieved by 2020. (Xinhua)
ISSUE 1 2016 39
Poverty Alleviation and Social Reform
Charity Law to
smooth Chinas
last-mile drive
to 2020 targets
A visitor passes by a booth of veteran care program during the 4th China Charity Fair in Shenzhen, south Chinas Guangdong Province, September 18,
2015. Mao Siqian
C
hinas national lawmakers passed the Charity Law which took a hit after several scandals in the past few years.
with 2,636 votes in favor, 92.49 percent of the to- As one way of redistributing wealth, charities can support
tal on March 16. areas overlooked by market and government investment, said
The new law, which was adopted at the NPC an- Cao Yisun, with the China University of Political Science and
nual session and will take effect in September, eases restric- Law and a national political advisor.
tions on the fundraising and operational activities of charity Take for instance, the Charity Law outlines rules clarifying
groups, promises tax benefits for the sector, and will tighten the responsibilities and liabilities of different parties involved
supervision on their internal management. in charitable activities, a good boost for the cause, he said.
Charity groups and law experts praised the law for re-
sponding to public concerns. Reservoir of charity fund
Annual donations to registered charities in China soared
from 10 billion yuan ($1.5 billion) to 100 billion yuan over The law defines how charities should be registered, giving
the past decade. approved charities more freedom in their operations than the
The charity sector will support the ongoing poverty al- current time.
leviation campaign, which has the pressing goal of lifting all Only a handful of charities are currently allowed to raise
rural residents above the poverty line by 2020. money from anyone, while others are restricted to specific
As of the end of 2015, 55.75 million rural Chinese had groups of donors.
been classed as impoverished, meaning they had a per capita Moreover, the new law stipulates that registered chari-
net income of less than 2,800 yuan a year. ties that have been operating for at least two years can apply
Both the public and authorities are wary of corruption to the civil affairs department for permission to raise funds
and mismanagement in the charity sector, the reputation of from the general public.
Tighter scrutiny
The new law adopts strict regulations to prevent fraud and
imposes tighter supervision on the management of charity
groups.
Recognizing that Internet fundraising is popular but also
an easy platform for fraud, the law requires that charities
post clear information either on their own websites or on
gateways designated by the Ministry of Civil Affairs.
Groups or individuals raising funds from the public with-
Doctors from the Tibet Frontier Corps General Hospital take a photo with
out a license will have to return the donations and may face a a child suffered from cleft lip and palate (CLP) on July 6, 2015. Estab-
fine of up to 200,000 yuan. lished in 1982, the Operation Smile program offers free treatment to poor
Charities may have their registrations revoked if they en- children who suffer from CLP in China. Wang Qun
gage in or sponsor activity deemed to undermine State secu-
rity or public interests. They may face punishment from other
law enforcement agencies.
The law asks charities to publish their articles of associa-
tion and information on their executives and supervisory
bodies. They should also give annual reports complete with
financial statements, details of projects launched as well as
staff pay and benefits.
A charity with permission to gather donations from the
public should have its financial report audited. It should also
minimize operational costs, keeping them below 10 percent
of the amount it raises.
The bill was submitted for its third reading at the annual
session of the NPC that just concluded on March 16, after
two readings at the bi-monthly sessions of the NPC Standing
Committee.
NPC deputies pushed about 90 amendments to the bill
during the deliberation, including doubling the maximum
fine imposed on charity groups that embezzle or misuse do- A resident living in the Minsheng Community in Yanji, Jilin Province
nations. (Xinhua) shows a charity supermarket card on July 21, 2015. Lin Hong
ISSUE 1 2016 41
Parliamentary Exchanges
Mr. President, their own development as well so that they can realize their
Dear Colleagues, dreams and also contribute to society.
Revisiting Africa after three years, I feel closer to this land
of warmth. Let me first extend warm congratulations on the Mr. President,
successful convocation of the 134th IPU Assembly and sin- Dear Colleagues,
cere appreciation to our host, Zambia, for its thoughtful ar- Africa is the cradle of human civilization, a promising
rangements. continent, and an important force for peace and stability in
The theme of this Assembly rejuvenating democracy, giv- the world and greater democracy in international relations.
ing voice to youth is highly relevant. I look forward to in- African countries, in the process of their development and
depth exchanges and discussions with colleagues and friends rejuvenation, enjoy great potential and broad prospect. How-
in a joint effort to promote cooperation, democracy and de- ever, they also face many difficulties and challenges in de-
velopment and make ours a more fair, equitable, democratic velopment. The international community should give strong
and harmonious world. support to African countries as they pursue self-development
First, peace and development is the foundation of democ- and seek strength through unity, and help the African people
racy. Peace is the eternal aspiration of mankind, and devel- make their dreams come true.
opment holds the key to all problems. We should abandon China and Africa have all along been a community of
zero-sum game and cold war mentality, and advocate a new shared future. At the Johannesburg Summit of the Forum on
approach to common, comprehensive, cooperative and sus- China-Africa Cooperation (FOCAC) in 2015, President Xi Jin-
tainable security. We will uphold world peace and stability, ping and African leaders agreed to upgrade China-Africa re-
promote common development and prosperity and cement lationship to a comprehensive strategic cooperative partner-
the foundation for democracy and progress. ship and to strengthen the five major pillars of China-Africa
Second, friendly consultation is a way of democracy. relationship, namely, commitment to political equality and
Consultation is an important form of democracy. We need a mutual trust, to promoting win-win economic cooperation,
stronger sense of a community of shared future. We should to mutually enriching cultural exchange, to mutual assistance
reject conflict and confrontation, work out differences in security and to solidarity and coordination in international
through consultation and enhance cooperation through dia- affairs. In light of Africas actual needs, China would imple-
logue. We need to build a new type of international relations ment ten cooperation plans with Africa in the next three
featuring win-win cooperation and make the global gover- years and provide a total of $60 billion of funding support.
nance system more just and equitable. Chinas National Peoples Congress (NPC) will work actively
Third, inclusiveness is the essence of democracy. There to implement the outcomes of the summit to promote China-
is more than one way of achieving democracy. Each country Africa business cooperation and people-to-people exchanges
has the right to choose a path to democracy in light of its own for more benefits to the Chinese and African peoples.
national conditions. We need to seek common ground while
putting aside differences, be open and inclusive, facilitate Mr. President,
exchange and mutual learning between different forms of de- Dear Colleagues,
mocracy and improve democratic institutions. The IPU is the oldest, largest and most influential interna-
Fourth, joint effort by the youth is the hope of democracy. tional parliamentary organization in the world. In the world
When the youth thrive, the world thrives. We need to heed of today, it can play a bigger role in advancing inter-parlia-
the need of the young and respect their uniqueness. We need mentary cooperation, building consensus and implementing
to step up education and training for the young people and the 2030 Agenda for Sustainable Development. Chinas NPC
build platforms for their innovation and entrepreneurship. values the status and role of the IPU and stands ready to
We should expand channels for them to take part in and contribute to its development. The NPC has signed an agree-
air their views on State affairs, and support and encourage ment to donate $1.5 million of spot exchange to the IPU and
the first group of projects will soon be launched. The NPC is China registered a growth rate of 6.9 percent and successfully
ready to further its friendship and cooperation with the IPU completed the 12th Five-Year Plan. Just days ago, the NPC
and the parliaments of other countries. adopted the guidelines for the 13th Five-Year Plan, which set
out the goals and tasks for Chinas development in the next
Mr. President, five years and stress the importance of innovative, coordinat-
Dear Colleagues, ed, green, open and shared development, to ensure that the
China is firmly committed to socialist democracy. Over the building of a society of initial prosperity will be completed as
years, we have always taken into consideration Chinas na- scheduled. China is opening wider to the outside world on a
tional conditions and put people first in our decision-making. higher level. The implementation of the Belt and Road Ini-
Committed to reform and opening up, we have drawn upon tiative put forward by President Xi Jinping will bring more
the useful experience of other countries political culture, em- markets and opportunities for cooperation to other countries,
barked on a path of political development suitable to Chinas especially developing countries in the world.
realities and developed a political system with distinctive
features. This political system ensures peoples participation Mr. President,
in national and social governance, a dynamic and orderly Dear Colleagues,
political life, and the steady progress of various undertakings Our work and cooperation, ultimately, is to meet our
in the modernization drive. The development of socialist de- peoples desire for better lives. Chinas NPC stands ready to
mocracy with Chinese characteristics is a vivid and successful strengthen cooperation with its counterparts in other coun-
testament to the diversity of democracy in practice. tries and international parliamentary organizations and
The Chinese economy has entered a new normal state contribute more to world peace, common development and
with greater emphasis on the quality and efficiency of devel- peoples well-being.
opment. In 2015, despite the slowdown of world economy, Thank you.
ISSUE 1 2016 43
Parliamentary Exchanges
Zhang Dejiang (L), chairman of the Standing Committee of China's National People's Congress (NPC), Zhang Dejiang (L), chairman of the Standing
shakes hands with Zambian President Edgar Lungu in Lusaka, Zambia, March 19. Ma Zhancheng Committee of Chinas National Peoples Con-
gress (NPC), meets with Rwandan President Paul
Kagame in Kigali, Rwanda, March 23. Ding Lin
M
arch 18 to 27, 2016, Zhang Dejiang, Chairman of more than 30,000 local people. Since the Ebola outbreak last
the Standing Committee of the National Peoples year, China has delivered more than $117 millions worth of
Congress (NPC) attended the 134th Assembly of humanitarian aid and sent hundreds of medical workers to the
the Inter-Parliamentary Union (IPU) and visited front lines in Ebola-stricken West Africa.
Zambia, Rwanda and Kenya. Chinese senior leaders frequent At the second FOCAC summit, China and African countries
interactions with Africa have sent a strong message that the agreed to lift their relations to a comprehensive strategic coop-
worlds largest developing country and the continent with the erative partnership. China announced the establishment of 10
largest number of developing countries together make up a major plans for China-Africa cooperation, covering industri-
community of common destiny. alization, agricultural modernization, infrastructure, financial
It is the first IPU assembly NPC chairman has attended services, green development, trade and investment facilitation,
since it joined the IPU in 1984. It is the first visit by NPC chair- poverty reduction and public welfare, public health, people-to-
man to Rwanda since the two countries established diplomatic people exchanges, peace and security. The programs focus on
relations. It is a visit to Zambia and Kenya by NPC chairman breaking the three development bottlenecks of underdeveloped
in 12 years. The attendance to the IPU assembly is expected to infrastructure, talent shortage and inadequate funds, while ac-
enhance roles that Chinas National Peoples Congress plays in celerating industrialization and agricultural modernization to
the Inter-Parliamentary Union. The visit to Zambia, Rwanda realize independent and sustainable development.
and Kenya is aimed at pushing forward the implementation of To ensure the smooth implementation of the initiatives,
the outcomes of the Forum on China-Africa Cooperation (FO- China pledged a funding support of $60 billion, including a
CAC) summit held in Johannesburg, South Africa in December China-Africa production capacity cooperation fund with an
2015. initial capital of $10 billion.
Sino-African diplomatic ties date back 60 years, and the Just three months after the summit, China has been in
deep bonds of friendship, mutual trust and support between contact with more than 20 African countries to follow up on
the two sides remain unchanged. Since 2012, China has pro- the outcomes of the summit, with a number of items soon to
vided African countries with loans worth over $20 billion to materialize and the China-Africa fund for production capacity
support infrastructure, investment, small- and medium-sized cooperation now up and running, as Foreign Minister Wang Yi
enterprises, agriculture and manufacturing. It has also rolled said at the press conference held on March 8 during the NPC
out about 900 assistance programs in Africa for agriculture, annual session in Beijing.
health, education and other fields and has offered training to During his trip to Zambia, Rwanda and Kenya, Chairman
ISSUE 1 2016 45
Parliamentary Exchanges
The Chinese people cherish profound sentiments towards In addition, Zhang and Rwandan Prime Minister Anastase
the Zambian people. They help and support each other both Murekezi attended the groundbreaking ceremony of a China-
in good times and hard times. It is the African brothers who aided government complex.
carried China into the United Nations. The Chinese people will The Chinese delegation visited the Kigali Genocide Memo-
never forget that. Same is true. It is the Chinese people who rial Center, which commemorates the Rwandan genocide in
helped the Zambian people and Tanzanian people to build 1994. Chairman Zhang laid a wreath of flowers to pay a respect
TAZARA when they themselves lived in hardship. The Zam- to the genocide victims.
bian and Tanzanian people will never forget that either.
At the meeting with Chairman Zhang Dejiang, The former A role model of China-Africa cooperation
President Kenneth Kaunda, an old friend of Chinese people,
applauded the Chinese peoples generosity to help Zambian China and Kenya agreed to push forward bilateral prag-
people to build railways, roads, schools, clinics, etc.. Kaunda matic cooperation, as Chairman Zhang Dejiang visited the East
said to Zhang, he is 91 years old this year and going on 92. He African country from March 23-26.
keeps fit and wishes to visit China again. Chairman Zhang ex- Zhang Dejiang held talks respectively with Kenyan Presi-
tends him an open invitation and welcomes him to visit China dent Uhuru Kenyatta, Speaker of National Assembly Justin
whenever he likes. Muturi and Speaker of Senate Ekwee Ethuro in Nairobi, and
Accompanied by Zambian Vice President Igonge Wina, inspected China-Kenya cooperation projects in the coastal city
Chairman Zhang also visited a China-Zambia economic coop- of Mombasa.
eration zone in Lusaka and a Confucius Institute in the Uni- China and Kenya should seize the opportunities arising from
versity of Zambia. implementation of the outcomes of the landmark China-Africa
Johannesburg summit last December, and push forward coop-
A visit ever by NPC chairman in 45 years eration in construction of projects of rail and port infrastruc-
ture as well as in industrial development and special economic
The official goodwill visit to the central African country zone building, Zhang told President Kenyatta on March 23.
made by NPC chairman Zhang Dejiang is the first one by a Kenya is a role model of China-Africa cooperation, Zhang
Chairman of the Standing Committee of Chinas National said, noting bilateral cooperation has witnessed fruitful results
Peoples Congress (NPC) since the two countries established since both sides have always respected and trusted each other.
diplomatic ties in 1971. The major plans announced by President Xi Jinping in Jo-
China and Rwanda have forged a brotherly friendship hannesburg highly accords with Kenyas development strategy,
during the past 45 years since the two countries have always Kenyatta said, expressing willingness to enhance pragmatic
treated each other as equals, Zhang said at a meeting with cooperation with China and learn from Chinas experiences
Rwandan President Paul Kagame on March 23. and practices in development and governance.
Zhang conveyed President Xi Jinpings to President When holding separate talks with Kenyas Senate Speaker
Kagame, stressing that China is willing to deepen pragmatic Ekwee Ethuro and National Assembly Speaker Justin Muturi,
cooperation with Rwanda in a comprehensive manner. China Zhang called on the legislative bodies of both countries to
appreciates Rwandas political stability, economic growth and expand exchanges and create more favorable conditions for
social harmony in recent years, Zhang said, stressing China China-Kenya cooperation in production capacity. Zhang and
will continue to firmly back the country to follow a develop- Muturi signed a Memorandum of Understanding on establish-
ment path in line with its national conditions. He called on the ing a parliamentary exchange mechanism between the two
two sides to actively implement the major China-Africa coop- countries to enhance legislative exchanges.
eration plans announced by President Xi Jinping at FOCAC During his stay in Nairobi, Chairman Zhang visited the Chi-
summit in Johannesburg, South Africa last December. na Central Televisions Africa bureau in Nairobi and met with
The two countries can prioritize cooperation on infrastruc- the heads of major Chinese news media in Africa. While visit-
ture construction, human resources development, the manu- ing China-Kenya vocational education cooperation center in
facturing industry, agriculture and other fields, Zhang said. the Technical University of Kenya, he stressed the importance
For his part, Kagame said Rwanda appreciates Chinas of vocational education in training the skilled labor force and
long-term support and aid to the country, especially for its providing jobs.
transformation. Rwanda will always be a committed supporter On the afternoon of March 25, Chairman Zhang visited the
and participant in China-Africa friendly cooperation, he said, site of construction of Mombasa West Station of the Mombasa-
expressing willingness to enhance pragmatic cooperation with Nairobi Standard Gauge Railway, which is being built by a Chi-
China under the FOCAC framework. nese company. He also inspected the project of China-Kenya
Kagame refuted some western countries claim that Chinas cooperation in building the Mombasa Port and Dongo Kundu
engagement in Africa as neo-clonianlism, saying China never Special Economic Zone.
attaches conditions to its assistance, never interfere in African Speaking at a conference with Chinese investors in Kenya
countries internal affairs, china is a true friend and partner, earlier in the day, Zhang called on them to stick to a balanced
said he. approach to friendship and interest, promote common devel-
During his stay in Kigali, Chairman Zhang also held sepa- opment and bring greater benefit to the Chinese and African
rate talks with Speaker of Chamber of Deputies Donatille peoples.
Mukabalisa and Senate President Bernard Makuza, promoting
exchanges between the NPC and Rwandas Parliament in a bid (The author is a deputy secretary-general of the NPC Stand-
to strengthen China-Rwanda ties. ing Committee)
Zhang Dejiang (L), chairman of the Standing Committee of Chinas Zhang Dejiang (R, front), chairman of the Standing Committee of Chinas
National Peoples Congress (NPC), holds talks with Kenyas National National Peoples Congress (NPC), holds talks with Kenyas Senate Speaker
Assembly Speaker Justin Muturi in Nairobi, Kenya, March 24. Ding Lin Ekwee Ethuro in Nairobi, Kenya, March 24. Ma Zhancheng
ISSUE 1 2016 47