Outcomes of China's 'two sessions'

GC expert panel on the outcomes of China's "two sessions", the NPC and CPPCC, focusing on how Beijing intends to achieve ambitious climate and technology targets laid out in its five-year plan for 2021-2025.

Highlights from the discussion::

• The 6%+ GDP growth target for 2021 was lower than many had expected. It is a clear signal that the Ministry of Finance and the People’s Bank of China want to focus increasingly on reining in debt.

• Premier Li Keqiang made important announcements regarding increasing social security spending and the retirement age. However, he did not explain how China in the future intends to better distribute the spoils of the country’s growth – a pre-requisite for higher private consumption and a rebalanced economy.

• A technology-focused five-year plan shows growing concern within the Chinese leadership about US intentions to contain the country’s rise. If cut off from global supply chains, development and productivity growth may stagnate and put China at risk of falling into the middle income trap

• Reaching net zero before 2060 has now become a key policy goal. While some were disappointed about China not bringing forward its peaking and net zero dates during the “two sessions”, we believe more ambitious targets will be announced later this year when provincial and industry-specific emissions reduction plans will be released.