China tightens Hong Kong grip, sets modest GDP target as parliament begins

[rooster59]

China tightens Hong Kong grip, sets modest GDP target as parliament begins

By Tony Munroe and Kevin Yao

 

Chinese Premier Li Keqiang speaks at the opening session of the National People's Congress (NPC) at the Great Hall of the People in Beijing, China March 5, 2021. REUTERS/Carlos Garcia Rawlins

 

BEIJING (Reuters) - China moved to overhaul Hong Kong's electoral system on Friday in a further blow to democracy in the city and unexpectedly set an economic growth target for this year, albeit a modest one, as it kicked off its annual session of parliament.

 

On a smoggy day in Beijing, Premier Li Keqiang touted the achievements of the previous year as China overcame the coronavirus pandemic, and laid out ambitions to solidify the economic recovery, cut emissions, invest in innovation and improve a worsening demographic outlook.

 

Also on Friday, Beijing unveiled its next five-year plan, pledging to lift annual research and development spending by more than 7% until 2025, highlighting a commitment to become self-sufficient as the country clashes with the United States and other countries over technology policy.

 

"We owe our achievements last year to the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core," Li said in an hour-long speech to over 5,000 delegates gathered in the Great Hall of the People, all of them inoculated against COVID-19 with a vaccine made by China's Sinopharm.

 

However, consumer spending remains constrained, investment growth lacks sustainability, and "the foundation for achieving our country's economic recovery needs to be further consolidated," he said in a speech that mentioned Xi 13 times.

 

Li set a growth target of more than 6% this year for the world's second-largest economy, seen to be easily achievable, defying expectations that China would refrain from setting a goal given global uncertainty caused by the pandemic.

 

China grew by 2.3% last year, its weakest in 44 years, but was still the only major economy to expand as it largely vanquished the domestic spread of the novel coronavirus that first emerged in the country in late 2019.

 

During Friday's parliamentary session, Beijing proposed legislation that would tighten its increasingly authoritarian grip on Hong Kong by making changes to the electoral committee that chooses the city's leader, giving it new power to nominate legislative candidates.

 

The measure, set to be approved during the week-long session of China's rubber-stamp parliament, would further marginalise a democratic opposition, decimated after Beijing imposed national security legislation following anti-government protests that rocked Hong Kong in 2019.

 

'QUALITY' GROWTH

 

The 2021 economic target was significantly below the consensus of analysts, who expect growth could beat 8% this year from last year's low base. Chinese shares fell.

 

China will keep its average annual economic growth rate over the next five years within a "reasonable" range, the government said.

 

Beijing also announced that its defence spending will rise 6.8% from 2020, up just slightly from last year's budget increase and broadly tracking the government's economic growth forecast.

 

Chaoping Zhu, global market strategist at J.P. Morgan Asset Management, said the low economic expansion target reflects a shift from quantity to quality growth.

 

"This implies that more resources will be allocated to push forward long-term initiatives such as environment protection, fiscal consolidation and leverage reduction, so as to boost China's long-term growth potential," he said in a note.

 

China pledged to lift employment, targeting more than 11 million new urban jobs, compared with last year's goal of over 9 million.

 

"We will expedite the transition of China's growth model to one of green development, and promote both high-quality economic growth and high-standard environmental protection," Li said.

 

Still, China stopped short of setting a cap on energy use in its 2021-2025 plan. Beijing previously included a cap on energy consumption in its 2016-2020 plan.

 

China also refrained from introducing a ban on building new coal-fired plants, and did not set a target for curbing coal power plants' capacity for the next five years.

 

($1 = 6.4756 Chinese yuan)

 

(Reporting by Kevin Yao, Judy Hua, Stella Qiu, Gabriel Crossley, Cheng Leng, Lusha Zhang, Tony Munroe, Ryan Woo and Yew Lun Tian; Editing by Sam Holmes)

 

-- © Copyright Reuters 2021-03-06

 

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[daveAustin]

Enabled and made rich by the west. Pukeworthy what they're doing to HK. The world needs to bandy together and give them the finger. Repatriate companies and set up in Taiwan/SK. Fk the cost!

[sammieuk1]

Changes to the electoral committee that chooses the city's leader, giving it new power to nominate legislative candidates.

 

A tried and already tested formula here in little China ????

[PatOngo]

1 hour ago, daveAustin said:

Pukeworthy what they're doing to HK. The world needs to bandy together and give them the finger.

Pukeworthy what they are doing in general! They need more than the finger thrown at them!

[1Gringo]

foreshadowing of what's to become of Taiwan and SE Asia, I'm afraid.

[mrmicbkktxl]

How about that UK-China treaty(one country,two systems)Why the UK let the chinese do whatever they want?

[Isaan sailor]

Don’t let China overrun Thailand—because that’s clearly their plan.

[sscc]

2 hours ago, 1Gringo said:

foreshadowing of what's to become of Taiwan and SE Asia, I'm afraid.

 

PRC to take over Taiwan ?    Yes,  it will happen,  it is a matter of when it will happen. 

SE Asia ?   No,  it will not happen. 

 

 

[Morch]

58 minutes ago, sscc said:

 

PRC to take over Taiwan ?    Yes,  it will happen,  it is a matter of when it will happen. 

SE Asia ?   No,  it will not happen. 

 

 

 

Because...?

[holy cow cm]

Hong Kong is gone now. Only way I will go there is transit at the airport. China is satan.

[Surelynot]

2 hours ago, Isaan sailor said:

Don’t let China overrun Thailand—because that’s clearly their plan.

Too late, too late was the cry......Jesus has passed you by.

[PatOngo]

5 hours ago, mrmicbkktxl said:

How about that UK-China treaty(one country,two systems)Why the UK let the chinese do whatever they want?

Not only the UK, seems, sadly, the world does'nt know how to handle China!

[PatOngo]

3 hours ago, sscc said:

 

PRC to take over Taiwan ?    Yes,  it will happen,  it is a matter of when it will happen. 

SE Asia ?   No,  it will not happen. 

 

 

I think they have Cambodia, Laos and Burma already!

[Surelynot]

Just now, PatOngo said:

Not only the UK, seems, sadly, the world does'nt know how to handle China!

What can they do? China is so big and so powerful now......sanctions are the only option.....and yet totally ineffective....the world has a serious problem.......maybe Thailand has got it right....they will sell their souls to China eventually.....might get some water in return.

[PatOngo]

9 minutes ago, Surelynot said:

What can they do?

It would be nice to see their military bases on the stolen islands in the South China Sea neutralised for a start!

[mrmicbkktxl]

8 minutes ago, Surelynot said:

What can they do? China is so big and so powerful now......sanctions are the only option.....and yet totally ineffective....the world has a serious problem.......maybe Thailand has got it right....they will sell their souls to China eventually.....might get some water in return.

Stop doing business with them how did all those companies survived when China was still underdeveloped.Money is the only thing you can hurt them

[PatOngo]

9 minutes ago, mrmicbkktxl said:

Money is the only thing you can hurt them

With 1.4 billion domestic consumers? I think there are other more effective ways to hurt them!

[from the home of CC]

up to them..

[Surelynot]

16 minutes ago, PatOngo said:

It would be nice to see their military bases on the stolen islands in the South China Sea neutralised for a start!

Couldn't agree more......but they will continue their expansion.....and world can/will only look on and wring its hands.

[PatOngo]

4 minutes ago, Surelynot said:

Couldn't agree more......but they will continue their expansion.....and world can/will only look on and wring its hands.

....and pay the price in the long run..............Nihao ma!

[RT555]

I worked in HK in 1995-1999 the people were happy to do the handover, I could see already in 1999 what was happening. Came back to work in 2003-2005 and HK was in a stall while Beijing was gaining strategy.....HK has been....is gone.....lots of cool memories during that time.....

[Meat Pie 47]

12 hours ago, Isaan sailor said:

Don’t let China overrun Thailand—because that’s clearly their plan.

They overrun Australia already

[mvdf]

21 hours ago, 1Gringo said:

foreshadowing of what's to become of Taiwan and SE Asia, I'm afraid.

 

Province of Taiwan

Southeast China

[daveAustin]

20 hours ago, mrmicbkktxl said:

How about that UK-China treaty(one country,two systems)Why the UK let the chinese do whatever they want?

What's the UK to do with (200 nukes) and ever decreasing army against a behemoth? Bit late to strongarm em lol.