Journey to Rejuvenation

 

CNY in space: Three taikonauts will enter the Lunar New Year in China’s space station, which will continue orbital construction in the year. — AP

 In 2012, Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, visited the exhibition "The Road of Rejuvenation." He described it as a retrospective on the Chinese nation, a celebration of its present and a declaration on its future. #XiJinping

 

The things taking place in China these days would have been unimaginable a century ago. In 2022, Beijing, where invading imperialists wreaked havoc more than 100 years ago, will host the Olympic Games for a second time, a chance for the world to stand stronger and together in solidarity.

` In space, three Chinese taikonauts will enter the Lunar New Year in China’s space station, which will continue orbital construction in the year.

` China’s journey to national rejuvenation is one of Chinese Communists leading 1.4 billion Chinese people in an unyielding struggle against all obstacles and challenges.

` The Communist Party of China (CPC) in July last year celebrated the 100th anniversary of its founding, and this year it will convene its 20th national congress.

` It is necessary to maintain a stable and healthy economic environment, a secure and safe social environment, and a clean and righteous political environment.

` Last year marks the critical juncture where the time-frame of China’s two centenary goals converge – to complete building a moderately prosperous society in all respects by the time the CPC celebrates its centenary, and to start building a great modern socialist country in all respects by the time the People’s Republic of China celebrates its centenary in 2049.

` On the new journey, Xi Jinping, general-secretary of the CPC Central Committee, Chinese president and chairman of the Central Military Commission, is undoubtedly the core figure in charting the course of history.

` “We must always keep a long-term perspective, remain mindful of potential risks, maintain strategic focus and determination, and ‘attend to the broad and great while addressing the delicate and minute’,” Xi said in his 2022 New Year address on Friday.

` Xi paid tributes to the Chinese people who have been hard at work and looked back at the extraordinary journey travelled by the CPC.

` “I sincerely hope all the sons and daughters of the Chinese nation will join forces to create a brighter future for our nation,” he said.

` China is walking on a model of modernisation characterised by innovative, coordinated, green and open development path that is for everyone. It is a model leading socialist China out of a development trap reliant on extensive and inefficient growth at the cost of ecological damage, shifting the country to high-quality development, and avoiding situations where the rich become richer and the poor poorer.

` China’s economy is estimated by some international organisations to have grown 8% last year to reach 110 trillion yuan (RM72 trillion).

` How to “divide the pie” is a world challenge and also one that China is committed to tackling.

` Nationwide, measures have been taken to prevent runaway expansion of capital, maintain order in the market, galvanise market entities of all types, especially micro, small, and medium enterprises, and protect the rights and interests of workers and consumers.

` China’s “common prosperity” initiative “is meant to end monopolies, increase innovation and competition, and give fairer opportunities, so now is the best time to invest in China’s hinterland”, said Shaun Rein, founder and managing director of the China Market Research Group, a strategic market intelligence firm.

` Zhejiang province, an economic powerhouse in east China, has drawn up detailed plans to achieve common prosperity, including labour remuneration will account for more than 50% of its GDP by 2025, and the ratio of residents per capita disposable income to per capita GDP will continue to increase during the period.

` Modernisation also reaches less developed regions such as the southwestern province of Guizhou, which has become the front-runner of China’s big data industry since being approved to build the country’s first national big data comprehensive pilot zone in 2016.

` Tech giants including Apple and Microsoft have established their cloud computing and big data centres and their regional headquarters in the province.

` Leveraging its accommodating climate, clean air and geography, Guizhou is now one of the regions with the highest number of mega-data centres in the world.

` The rejuvenation spans more than just material goods such as high-speed trains or an emerging fleet of new energy cars. By 2035, China is set to basically achieve socialist modernisation.

` China is also aiming to have CO2 emissions peak before 2030 and achieve carbon neutrality before 2060. A top-level design document has been released towards the ambitious goal.

` The Party has established Xi’s core position on the Party Central Committee and in the Party as a whole and defined the guiding role of Xi’s Thought on Socialism with Chinese Characteristics for a New Era.

` This reflects the common will of the Party, the armed forces and Chinese people of all ethnic groups, and is of decisive significance for advancing the cause of the Party and the country in the new era.

` Today, the great rejuvenation of the Chinese nation has entered an irreversible historical process, but it will not be easy, as Xi said on Friday: It will not happen overnight.

` China’s economic development is facing pressure from demand contraction, supply shocks and weakening expectations, and the external environment is becoming increasingly complicated and uncertain.

` China also faces an ageing population.

` In deepening reform and opening up, certain deep-seated institutional problems and impediments from vested interests became increasingly evident.

` China’s reform thus entered a critical phase fraught with tough challenges.

` Some elements in the world still deem themselves superior and always want to impose their own will on others: They throw out arbitrary rules and use human rights and other high-sounding excuses to smear China and many other developing countries.

` State Councillor and Foreign Minister Wang Yi said China must not compromise or back down.

` “Instead, we must face them head-on, and pull together with most countries to defend fairness and justice,” Wang said on Thursday.

` In its continued engagement with the world, China upholds and practises true multilateralism, urging countries to resolutely uphold the authority and standing of the United Nations, jointly oppose division and confrontation, stand together against zero-sum games and make constant efforts for greater democracy in international relations.

` As Xi said on Friday, “Only through unity, solidarity and cooperation can countries around the world write a new chapter in building a community with a shared future for mankind.” — Xinhua

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What are the keys to China’s economic miracle? 

 Absorbing topic: Ouyang (top centre) with local academics (clockwise from top left) Dr Chang, Prof Wong, Dr Chan and Dr Ngeow discussed the factors behind China’s success at the recent ‘Governance of China: Perspectives from Southeast Asia’ webinar.

 

CHINA’s success in building a strong economy, eradicating abject poverty, curbing the spread of the deadly Covid-19 virus and promoting the Belt and Road Initiative (BRI) to benefit the world can be attributed to its strong governance capability, according to a recent seminar.

From a backward country in 1978 to an economic juggernaut today, the Middle Kingdom’s rise over the past 40 years has been spectacular. What has its leaders done to create one miracle after another? This question has spurred academics at the Institute of China studies (ICs), Universiti Malaya, to explore factors behind Beijing’s achievements.

This former “sickman of Asia”, invaded and humiliated by the West in the 19th and first half of 20th century, is now the world’s second biggest economy. It is also the world’s manufacturing powerhouse and the largest trading nation. It has lifted about 800 million people out of poverty since Deng Xiaoping introduced reforms.

On the technological front, China is a pioneer and global pacesetter in 5G rollout, e-commerce, artificial intelligence, robotics, high-speed railway, satellite navigation and space exploration.

In the “Governance of China: Perspectives from southeast Asia” webinar, jointly organised by the ICs and the Chinese Embassy in Malaysia, Prof Datuk Dr Danny Wong highlighted China’s 1.4 billion people are enjoying a very high standard of living.

“China’s development plans and programmes are the envy of many nations. All these achievements speak volumes of the country’s ability to govern well – to be able to translate strategic plans into effective programmes that bring results.

“One of the things that struck me as important and relevant now is the manner China has been able to handle the Covid-19 pandemic very well. This is a clear display of China’s strong governance capabilities – both on the home front as well as in the international arena,” said Prof Wong, who is the dean of UM’s Faculty of Arts and social sciences.

Prof Wong, also former director of ICs, shared his ground experience in witnessing China’s ability to plan and implement longterm education strategies.

Earlier this year, China announced economic goals for 2025 and 2035, and a carbon-free goal by 2060.

Analysing Beijing’s multi-decade efforts in poverty eradication, ICs director Dr Ngeow Chow Bing attributed the success to Beijing’s strong determination in eliminating poverty, market-oriented economy and government’s strong involvement.

China’s governance system is unique, Dr Ngeow explained. Within the system is a political structure with a very strong cadre/ official mobilisation capability, target-based governance and pairing assistance between rich and poor areas.

The specialist in China affairs said: “Under President Xi Jinping, the ‘last mile’ (the last 99 million very poor people) of poverty eradication was targeted with precision. Party officials were stationed at remote areas and their problems solved with tailored solutions.

“While China’s institutional structure is vastly different from other countries and not replicable, its strategies in wiping out poverty can be learnt.”

Giving the official view, Chinese Ambassador to Malaysia Ouyang Yujing said: “The secret of China’s effective governance is not enigmatic. It lies in the political system – the socialist system with Chinese characteristics adopted by the Communist Party of China (CPC).”

He said the “people-oriented” philosophy of the CPC in governance has won over the hearts and confidence of its people. This could be proven by surveys. And due to this, citizens are prepared to endure hardship and sacrifice to help the government achieve its goals.

A stark example is seen in the lockdown of Wuhan in combating Covid-19 last year, when residents showed a high degree of obedience towards the directive to stay home and sacrifice personal freedom for weeks.

Dr Peter T.C. Chang, deputy director of ICs, pointed out that China’s unique one-party state has enabled the country to choose its leaders in an effective manner. And the government has built up a trusting relationship with the people.

But he opines China should not be seen as a threat, despite the fact that it has become a global power with footprints around the world through BRI.

“China’s rise is comparatively peaceful and benign. CPC ideology is for China only. From Asean’s perspective, China is not a threat in colonisation. We do not think China harbours that ambition, although there are territorial disputes in the south China sea,” said Chang.

Apart from the CPC, China’s state-owned enterprises (SE) have also played an important role in effective governance, according to Dr Li Ran.

Within each SE is a CPC party committee functioning as a governing body, similar to the board of directors in a company, she explained.

“This party committee ensures that the CPC’s policies and strategies are executed. And this structure has made SE become the visible hand to manage economic activities on behalf of the state,” said Dr Li, a Chinese national serving at the ICs.

Many SEs have been mobilised to implement BRI projects overseas. In Malaysia’s ECRL, China Communications Construction Company (CCCC) and Exim Bank of China are the SES expected to ensure this state-linked project will be a success.

But not all is rosy in SE governance as there are “zombie enterprises” that have incurred huge losses or production over-capacity. some have even been dragged down by corruption and scandals. All these incidents have tarnished the image of Chinese governance.

However, under the leadership of President Xi, a lot of emphasis has been placed on rooting out corruption and improving SE performance, Dr Li observes. Harsh actions were taken against government officials and CPC leaders involved in wrongdoings.

But still, China has under-performed in terms of institutional indicators and qualities in the region when compared with four leading Asean nations, according to Assoc Prof Dr Chan sok Gee.

Her studies, however, showed there is now more accountability in SES, improved government effectiveness and political stability under the leadership of President Xi.

As China celebrates the 100th anniversary of the founding of the CPC this month to remind its people of the role played by the CPC in making China great again, its unique system of governance has emerged to be a key part of many analytical writings on China’s success story today.

BY HO WAH FOON

 

 

 

 

Celebrating CPC centenary

 

Keepsake: A China Post staff holding a set of 20 commemorative stamps and a commemorative cover issued in celebration of the 100th anniversary of CPC. — Xinhua

 

 China celebrated the ruling party’s anniversary last week. But for the ordinary citizens, they have their own way to mark the event.

MANY couples rushed to tie the knot last week in China. They wanted to commemorate their special day just as China celebrated the 100th birthday of its ruling party, Communist Party of China.

A bride from Beijing said she chose July 1 to register her marriage for long lasting relationship.

“Hope our love would last 100 years, just like today’s celebrations,” Shasha Liu told the local media last Thursday.

It was the day to mark the 100-year formation of the CPC, the sole political party in power that had led the country to become a moderately prosperous society.

Marriage registration offices across China recorded a higher number of couples getting hitched last week.

A Civil Affairs Bureau worker in Jinan city of east China’s Shandong province revealed that they received more than 30 couples in the morning alone.

“I could see that many of them are party members as they were wearing a party emblem on their clothes,” she told the Global Times, but did not reveal the average daily number of couples who had visited the place.

At Baoshan district of Shanghai, a long line of people waited with excitement to start their new life.

“My girlfriend and I are both party members, so we thought this would be a unique way for us to mark this special day and also for the country,” a man, who only wished to be known as Bai, said.

At a hospital in Zhengzhou of central China’s Henan province, a couple in their 80s sang songs along with other patients and medical staff as they celebrated their 50th marriage anniversary.

The pair made the hospital ward their home after the man was admitted for Alzheimer’s several years ago.

“It has been 10 years since he has the disease.

“Even if he has forgotten about everything, I will continue to be by his side,” said the wife as she leaned on her husband.

Identified only as Li, she said their children were busy making ends meet and could not take care of them.

Stamp collectors across the nation got into a frenzy purchase of commemorative stamps and envelopes issued by China Post to commemorate the occasion.

The set of 20 stamps and envelopes reveal the 100-year journey of CPC.

The stamps use red and gold as the main tones while the envelopes contain patterns of the party emblem, Great Wall and a golden inscription of Chinese characters saying “Staying true to our original aspiration and founding mission”, Global Times reported.

A long queue of people formed outside a post office in Shanghai as early as 6.30am.

Among them was 66-year-old Yang Chaode, who travelled 4,000km from Xinjiang Uighur Autonomous Region.

He had waited for the launch since the day before.

“My friends in Xinjiang are waiting for me to send the letters to them, with the postmark in Shanghai, the birthplace of CPC,” Yang added.

In Wuhan, public bus driver Nie Sanhua cleaned up his vehicle in the early morning before decorated the interior with stickers, posters, party flag and other paraphernalia related to the celebration.

The CPC, founded on July 1, 1921, with just 50-odd members has grown with more than 95 million members.

The formation of the party was proclaimed in front of 12 people onboard a boat at a lake in Zhejiang province.

For decades, the CPC was in the dark on its founding date as there were hardly any records about its formation.

So, the party declared July 1 as its established date in 1941.

In the 1980s, more information was gathered with the findings of more documented records.

Today, a replica of the boat – known as the Red Boat – is parked at the Nanhu Lake, about 100km from Shanghai, to commemorate the event.

In Chinese, the top party leader is known as zong shuji which means clerk or secretary.

The term – the lowest among the official positions – was adopted to show the party’s determination to serve the people and stand alongside with them.

Nanhu Lake has become a popular tourist spot visited by nearly nine million travellers annually following a boost of “red tourism”in recent years.

Red tourism refers to sites with historical and cultural significant to the CPC.

 By Beh Yuen Hui

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As China gears up to celebrate the 100th anniversary of the founding of the Communist Party of China (CPC) on July 1, one of the greatest achievements of the CPC to be highlighted is what has been widely described as an economic miracle. From a backward agrarian economy in the early days of the People's Republic of China (PRC) to an economic and technological powerhouse today, China's economic success story under the CPC's leadership has arguably become the global story of the century and the envy of the world.

The secret codes behind such miraculous achievements have also become a hotly debated topic around the world. This article will decode those codes.

Born into a poor rural family with per capita disposal income of less than 50 yuan ($7.80), the PRC, now in its 70s, has seen the income reading top 32,000 yuan as of 2020. Behind the 640-plus fold surge is the country's rapid ascent to a global behemoth in almost every aspect in an unparalleled timeframe and path.

What are the CPC's secret codes to economic success?

To answer that, the Global Times conducted an extensive examination of the CPC's economic policymaking at several critical junctions and interviewed domestic and foreign experts. Four key themes stand out.

World main countries 2021 Q1 GDP Growth Infographic: Wu Tiantong/GT

Bold planning, effective execution

"The five-year planning is the major driving factor that boosted the Chinese economy to the No. 2 in the world. This system is effective and reliable in focusing on and predicting how the economy performs and which necessary adjustments are required to finetune it along the way," David Monyae, director of the Centre for Africa-China Studies at the University of Johannesburg, told the Global Times.

Since its beginning in the 1950s, there have been 14 five-year plans (FYP) - each marks a significant shift in China's economic policies and advances in social and economic development.

The first FYP, which started in 1953, envisioned the industrialization of China, starting the 60-plus year journey of creating an economic constellation that's being renovated every five years.

"China has led a different path than the West's laissez-faire capitalism or its so-called marketization. China maintains more compelling institutional prowess than the West," said Cong Yi, dean of School of Marxism under Tianjin University of Finance and Economics, citing the Party's strong ability to make strategic development plans that integrate short-term plans into medium and long-term ones.

After initially drawing on the Soviet Union's five-year planning experience, the CPC soon realized the limitations of the Soviet model and some of its shortcomings and mistakes, and then decided to independently explore a socialist construction road suited to China's national conditions, which, coupled with laser focus and effective execution, led to one milestone after another.

The 13th CPC National Congress in 1987 made a proposition of a three-step development strategy that envisaged doubling the gross national product (GNP) between 1981 and 1990, doubling its GNP again by the end of the 20th century and per capita GNP reaching moderately developed country levels by the middle of this century.

Buoyed by unprecedented reformist drives since the country's grand reform and opening-up in 1978, the second-step target was hit at the conclusion of the Eighth FYP (1991-95), five years ahead of schedule.

In yet another milestone, the Third Plenary Session of the 14th CPC Central Committee in November 1993 passed the decision on certain issues in establishing a socialist market economic system. With the guidance of the Ninth FYP (1996-2000), the country made good the transition from a planned economy to a socialist market economy in 2000, a prelude to its accession to the WTO in December 2001.

In the latest proof of the effectiveness of the FYP, just as planned, the alternation of the 13th FYP ended 2020 and the newest FYP starting this year is on course to deliver a victory for its first centenary goal of building a moderately well-off society on the CPC's 100th anniversary.

"The main feature of the five-year plans is the top-level design, which is holistic, macroscopic, forward looking, anticipatory and binding," Zhao Xuejun, director of the Modern Economic History of China Research Center under Chinese Academy of Social Sciences (CASS) Institute of Economics, told the Global Times.

Today, China's FYPs have become a closely watched policy document around the world as it provides a valuable window into China's economic policies and development goals.

This year, global attention was focused on the 14th FYP ending 2025, which is set to pave the way for the second centenary goal to be attained - building a modern socialist power by 2049 when the PRC turns 100.

File photo:VCG

 

Seeking truth from facts

However, even as China's economy advanced in an overall steady pace as planned, there were no shortages of difficulties and mistakes over the past several decades - from some early decisions and policies that were against market rules to the "decade of the catastrophe," to the blind pursuit of extensive and high-speed growth over a certain period of time.

In overcoming those challenges and mistakes, the CPC showed its ability to "seek truth from facts" - a phrase that epitomizes the Party's flexibility and ability to objectively pinpoint the problems, experts said.

That ability was highlighted in the Party's response to crises during the Great Leap Forward era, which coincided with the Three Years of Natural Disasters (1959-61) and the breakdown of Sino-Soviet Union relations.

During the period, exaggeration about production prevailed across China, being called "launching satellites," and from wheat, rice and steel, places and reports started to boast of false high productions. The economic and social campaign that aimed for a rapid industrialization to steer the-then poor economy into a modern communist society appeared to have wrong-footed the economy.

Instead of turning a blind eye to the truth, the CPC Central Committee urged maximum efforts to correct all deviations in an urgent instruction letter in November 1960 and a Party plenum in January 1961 decided on the implementation of an economic adjustment.

As the economy ran its course of adjustment at the end of 1965 and began its third FYP, the Cultural Revolution began, putting the country in "10 years of catastrophe" until 1976.

Then came another turn - the 11th National Congress of the CPC in August 1977 declared the end of the Cultural Revolution and reiterated that the Party's fundamental task was to build the country into a socialist modern power.

"The CPC has a strong mechanism of self-correction; internally it came from the democratic system of the Party, and essentially it is built on the Party's tenet of seeking interest for the people and re-juvenation for the nation," Zhao told the Global Times.

The perseverance with seeking truth comes across as building the economy's resilience that has dissolved various challenges and crises, such as the 1997-98 Asian financial crisis, the 2008 global financial crisis and the COVID-19 pandemic, into hiccups which only result in increased economic sophistication, observers noted.

In response to the crises, the CPC was able to seek truth from facts and be flexible, as well as to be free from prejudice and ideological bias, encouraging local exploration and innovation, Zhao said.

In another striking and more recent example, the Party has managed to bid farewell to an unhealthy obsession with GDP growth that regards GDP statistics as the core or even the only indicator for assessing government performance, which stoked concerns over high GDP numbers at the expense of the environment and economic imbalance.

For instance, in August 2014, East China's Fujian Province cancelled the GDP assessment in 34 counties and cities, and implemented the evaluation method of giving priority to agriculture and ecological protection.

Aerial photo taken on Sept. 17, 2020 shows the Houhai area in Nanshan District of Shenzhen, south China's Guangdong Province. Photo:xinhua

 

Reform and opening-up

Just as the CPC is very swift in correcting mistakes, it is also profoundly persistent and steadfast in carrying out scientific policies - another pillar of the CPC's economic success.

The milestone Third Plenum of the 11th CPC Central Committee in December 1978 has been widely known as a starting point for the economy's 40-plus years of reform and opening-up, ushering in a transition from a class struggle-themed Party platform to a focus on economic building.

The main resistance force came from people's fear of capitalism, thinking that opening to the outside world would alchemize New China. With keen observation on the world's development in economy and science and technology, Deng Xiaoping launched the opening-up policy, pushing aside all hesitance and skepticism.

In early 1982, the Shekou industrial zone in Shenzhen was criticized by some for planning to hire a foreign business manager. When Deng learned this, he immediately applauded the decision, saying that it's OK to hire foreigners as managers and it is no traitorous behavior.

The reform of the country's state-owned enterprises (SOE) is an evocative story of the country's undaunted approach to boosting its economy.

By 1987, 80 percent of the country's state-owned enterprises (SOEs) adopted various forms of the contracted managerial responsibility system. Some enterprises even began to undertake shareholding system reforms.

Graphic:GT

In the first quarter of 1996, the country's 68,800 SOEs, as a whole, recorded their first net loss since the founding of the PRC.

After the pain comes the result. From 1989 to 2001, though the number of SOEs dropped to 46,800 from 102,300, their total industrial added value increased to 1.47 trillion yuan from 389.5 billion yuan, surging 11.67 percent annually.

Despite tremendous success over the past several decades, difficulties and hurdles never ceased to test China's commitment to the reform and opening-up policies today.

The thorn-covered yet high-yielding road to reform and opening-up, as such, was being paved as efforts to liberate thoughts and the bold push for innovation trickled in. With an endeavor to sustain liberation on multiple fronts for there to be even deeper reforms, China finally pushed through.

In 2020, China overtook the US to become the world's top destination for new foreign direct in-vestment. In the first five months of 2021 alone, China attracted 18,497 new foreign-funded firms and 481 billion yuan in foreign capital.

Graphic:GT

 

Self-sufficiency, innovation-driven

However, increasingly opening up to the outside world does not mean China will not mitigate seri-ous risks for its national and economic security. Since the earlier days of the CPC's leadership, self-sufficiency in many core sectors such as food and technology was a major focus, which has also become a key code to the CPC's success.

In an early sign of a self-reliant approach to development, by 1964, the self-sufficiency rate of China's main machinery and equipment had reached over 90 percent. With construction of the Daqing oilfield completed and Shengli and Dagang oilfields under development, China achieved total self-sufficiency in oil by 1965.

Since then, that quest for self-sufficiency in many areas, including technological innovation, has never stopped and has helped lift China to a world-leading global technological power in many areas - from 5G to high-speed rails, and from new-energy vehicles to space exploration technologies.

Just last week, China pulled off the country's first-ever automated fast rendezvous and docking of a manned spacecraft with China's orbiting space station core cabin, after the Shenzhou-12 manned spacecraft was successfully launched on the Long March-2F Y12 carrier rocket.

China's considerable technological prowess has already unnerved the US, which has been a domi-nant player for decades.

The CPC's focus on self-sufficiency and innovation-driven strategy was particularly notable in the country's efforts to mitigate an increasingly hostile external environment marked by a relentless attempt by the US to contain China's rise.

Even before the US' crackdown campaign, the focus on self-dependence and technological innova-tion was highlighted as the CPC convened its 19th National Congress in October 2017, where a new era of China's socialism was declared. The Party's 18th National Congress also introduced an innovation-driven development strategy.

Since then, in a series of meetings and top policy documents, the CPC has constantly stepped up efforts to pursue efficiency in a wide range of areas, from semiconductors to crop seeds.

"Against the backdrop of an intensifying China-US rivalry, China may face rising risks of high-tech blocks, supply chain obstruction, or further trade disputes. What China needs to do is focus on its own business and concentrate on overcoming the difficulties in key technologies, equipment, raw materials and design software that are being held back by Western countries, and coordinate devel-opment and security," said Zhao.

As these new challenges emerge, while China is no longer the backward, war-torn country it was 7 decades ago, challenges and risks, both domestic and foreign, remain. With the CPC's firm leader-ship and its proven successful economic policymaking, China is better positioned than ever to reach its bold development goal of becoming a modern socialist power in the coming decades, analysts said.

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CHINA’s most important meetings of the year – “Two Sessions” – have unveiled Beijing’s medium- and long-term economic goals and strategies that experts believe will not only boost China’s quality development and modernisation but will also benefit the world, in particular Asean.

As Malaysia is part of the 10-nation Asean, China’s biggest trading partner, it will gain from Beijing’s strategies as long as Putrajaya continues to embrace foreign policies deemed as friendly – or at least non-toxic – towards Beijing.

The “Two Sessions” or Lianghui refers to the annual meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC).

The NPC is the Parliament where laws and policies are adopted, while the CPPCC is the top political consultative body comprising the Communist Party of China (CPC) and other interest groups that provide policy input for the NPC.

At the start of the NPC in Beijing on March 5, Premier Li Keqiang, while unveiling the 14th five- year plan (2021-2025), announced that China had set an economic growth target of more than 6% for 2021 – with emphasis on high-quality development, green economy, modernisation and innovation.

The GDP of China, the first country to be hit by and recover from the Covid-19 pandemic, grew by only 2.3% in 2020. Still, China was the only major economy to post growth last year.

Li also announced that China – the world’s second largest economy in the world – wants to double the size of its economy to 202 trillion yuan (RM128 trillion) in 2035, from 102 trillion yuan (RM64.5 trillion) in 2020.

Over the next five years, Beijing will aim to keep unemployment low, strive for 7% annual growth in research and development spending and forge a new development pattern.

China also aims to become an advanced manufacturing powerhouse by 2025. This involves upgrading its manufacturing capabilities in rare earth, robotics, aircraft engines, new energy vehicles, high-end medical equipment and innovative medicine, aviation, high-speed rail and industrial applications of the BeiDou satellite system.

Ultimately, China wants to reduce reliance on foreign technologies and enhance competitiveness against the United States after being trapped in a long and acrimonious US-initiated trade war.

According to a Xinhua commentary, the CPC wants to lay the foundation to transform China into “a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious and beautiful” by the middle of the 21st century.

To double its GDP, China needs to achieve an average annual growth rate of 4.7-5.0% in the next 15 years, according to estimates of economists.

Prof Justin Lin Yifu, a top economist in planning Beijing’s poverty eradication programmes, projects that China will become a high-income nation by 2025.

The dean at the Institute of New Structural Economics of Peking University told Chinese newspaper Global Times that his optimistic prognosis “is based on China’s complete industrial chain, rich industrial range and advantages in new technologies, including 5G and artificial intelligence”.

Chen Fengying, a research fellow at the China Institutes of Contemporary International Relations, told Global Times the five-year plan has taken into account risks and challenges, particularly those posed by the US and its allies that try to contain China’s rise and technology advancement.

Despite challenges ahead, Beijing has demonstrated that it is capable of achieving targets. A good example is shown in the eradication of extreme poverty in 2020, achieved on the back of economic disruption induced by Covid-19.

While China’s economic strategies aim primarily at developing domestic growth, they are seen as benefiting investors and foreign nations.

“Given the size of the Chinese economy and the important role it plays in the global economy, the 14th Plan also offers a bright spot for the global economy in this difficult time, ” Bai Ming, deputy director of the International Market Research Institute, told Global Times.

Indeed, China has contributed about 30% in global economic growth on average over the past 20 years. Within the next five to 10 years, China is expected to contribute 25-30% to global economic growth, says Gobal Times.

Christina Zhu, an economist at Moody’s Analytics, notes that Beijing plans to increase spending on fundamental research by 10.6% this year and encourages manufacturers to invest in research and development by offering greater tax benefits.

“China will further open up its domestic market to foreign businesses and investors. It has lifted restrictions in areas such as high-end manufacturing, new energy and service industries, and has committed to trimming down the negative list and providing a level playing field for foreign enterprises, ” she writes in a note.

Foreign trade stability and growth in foreign investment are critical to China’s ambition for greater connectivity with the world economy, she adds in the note also issued to Sunday Star.

Judging from what China’s Foreign Minister Wang Yi has said, Malaysia and its Asean neighbours can expect to enjoy preferential treatment from China.

Last Sunday, Wang Yi told a press conference: “China is willing to work with Asean to build an even closer community with a shared future and another 30 years of even greater cooperation.

“In the new development stage, China is like an express train with greater driving force and load capacity. China welcomes all countries to get on board and move towards a future of shared prosperity.”

Locally, the Associated Chinese Chamber of Commerce and Industry of Malaysia (ACCCIM) sees Asean becoming a strong beneficiary of Beijing’s economic plan and goals.

“With China regaining its strong growth momentum in 2021, its economic strategies will help to support Malaysia and Asean’s economic recovery from the pandemic, ” says Tan Sri Ter Leong Yap, president of ACCCIM.

The trade group sees China as intensifying external connectivity via the Belt and Road Initiative (BRI) of President Xi Jinping to accelerate China’s involvement in international trade.

Touching on Malaysia, ACCCIM notes that China has become Malaysia’s largest trading partner for the 12th consecutive year in 2020, with total trade valued at RM329.8bil or 18.6% of Malaysia’s total trade. Exports to China accounted for 16.2% while imports from China stood at 21.5%.

In 2020, China’s investment in Malaysia jumped 43.8% to RM5.8bil to become Malaysia’s sixth largest foreign investor.

“China’s long-term sustainable economic growth and greater emphasis on quality and technology-driven investment will open up more trade and investment cooperation in the areas that can help Malaysia’s industrial development.

“China’s signature BRI can continue to be a catalyst to spur more China investment to Malaysia and Asean, ” Ter tells Sunday Star.

The growing influence of China on the global stage will boost China-Asean economic cooperation, which can be further cemented by the signing of the 15-member Regional Comprehensive Economic Partnership (RCEP), he adds.

Malaysia’s development focus on IR 4.0, digitalisation, 5-G technology, e-commerce, green investment, renewable energy, electric cars and smart transport infrastructure also means that both nations can work together to foster win-win deals.

Ter opines: “Malaysia can learn a lot from China in high technology, digitalisation, agri-tech and the building of smart and eco-industrial parks.

“We hope that the Prime Minister’s planned visit to China could further strengthen bilateral relations, taking it to a new level of win-win partnership. Both countries have come a long way in deepening trade and investment flows, enhanced connectivity and people-people exchange.”

For Prof Datuk Dr Chin Yew Sin, China’s BRI strategy under its 14th five-year plan could help Beijing achieve its economic targets.

“Between 2013 and 2019, China had signed with 138 counties, including Asean countries, for a total of 790 BRI projects. These overseas BRI projects undertaken by China will help spur the economic growth rate of China by about one per cent annually.

“The BRI projects implemented in Malaysia and other Asean countries will enhance the economic growth rates of these countries also, ” says Dr Chin, adviser for the Global One Belt One Road Association (Asia Pacific Region).

Dr Chin believes China’s demand for Asean’s natural produces and manufactured products will be even greater when it overtakes the US to become the largest economy in the world before 2035.

“By then, Malaysia will be able to export more of its electrical and electronic products, palm oil, rubber, oil and gas, timber products and others to China due to a higher demand of these goods.

“In addition, Malaysia will be able to attract more direct investments from China because of its long-standing good relationship with China, ” he adds.

Malaysia was the first Asean country to establish diplomatic ties with China in 1974 and Beijing has never failed to repeat its gratitude to Malaysian leaders at meetings, Dr Chin notes.

Datuk Keith Li, a mainland Chinese business leader in Malaysia, shares the views of his Malaysian counterparts.

“China will definitely focus more on the Asean market since the bloc is China’s biggest trading partner amid the pandemic. Moreover, China’s current ties with the US, Europe and Australia are tense, ” says Li, president of the China Entrepreneurs’ Association in Malaysia.

He adds: “There will be more to be done when the RCEP is implemented. China is expected to help Malaysia build a high-speed railway, an essential link with other Asean countries” Cambodia, Myanmar, Laos, Thailand and Singapore. This will also facilitate China to enhance economic cooperation with Asean in tourism, trade, logistics and communication.”

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China has lifted 700 million out of poverty over 70 years, set to eliminate its last poor very soon

 

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Helping hand: President Xi Jinping (second from left) has a complete portfolio of poverty relief plans, despite the sudden onslaught of Covid-19. — Xinhua

 

BEIJING: China is making a final sprint to eliminate absolute poverty as it marches towards a moderately prosperous society.

Leading this anti-poverty effort is President Xi Jinping, also general secretary of the Communist Party of China (CPC) and chairman of the Central Military Commission.

The Chinese leadership has set 2020 as the deadline to eradicate poverty. Every CPC leader in the past had worked towards this target, but the work by Xi has impressed many people.

Last March, Xi convened a televised symposium on poverty alleviation. He reiterated the deadline and vowed to lift the remaining five million-plus people out of poverty by the end of the year, despite the sudden onslaught of Covid-19. In September, Xi said China has “every confidence” of achieving the goal.

The nation will meet the poverty eradication target (set out in the 2030 Agenda for Sustainable Development) 10 years ahead of schedule, Xi told the 75th session of the United Nations (UN) General Assembly then.

In his latest instruction made public in mid-october, Xi said there should be no letting up until a complete victory has been secured.  

 Millions climb out of poverty trap

Poverty has plagued China for thousands of years. Since the founding of the People’s Republic of China in 1949, the anti-poverty war has lifted over 700 million rural people out of poverty.

Great strides had been made under the reform programmes and opening up of China in 1978, started by Deng Xiaping.

Xi assumed the historic responsibility of leading this anti-poverty fight, after he was elected general secretary of the CPC in November 2012. At that time, About 99 million Chinese lived under the poverty line, earning a per capita income of less than 2,300 yuan (about US$1 dollar) a day.

To meet the 2020 anti-poverty deadline, over 10 million people have to be lifted out of poverty every year. This equates to about one million people every month, or 20 people every minute.

President Xi goes to the ground

About one month after taking over the helm of the CPC, Xi braved winter cold to visit poor villagers in Hebei Province. Sitting down with them, Xi asked about their income, if they had sufficient food and enough quilts and coal to stay warm.

In November 2013, Xi went to Shibadong, a Miao ethnic minority village nestled in the mountains of central China’s Hunan Province. There, he put forward the concept of targeted poverty alleviation.

Across the country, all impoverished people and the factors that have led to their poverty are identified. Each household or individual is given a customised poverty relief plan.

They might get help to start a small business, be relocated out of mountains or receive training to find jobs in cities.

Their children will be given education. And there is a system to keep track of progress to ensure the measures are having their desired effect.

Xi has put poverty relief work under the leadership of the CPC of 90 million members. Party chiefs at all levels are required to take up a role.

Over 2.9 million public sector officials are sent to villages to fight poverty “at the front line.”

The leader has convened a series of meetings on poverty alleviation. Before every meeting, he would visit impoverished regions to learn about local situations and listen to suggestions of grassroots officials and members of the public.

Xi has a complete portfolio of poverty relief plans. He sets basic targets at meetings: rural poor people must not worry about food and clothing, and have access to compulsory education, basic medical services and safe housing.

A lot of emphasis is given to the role of education to stop repeat of poverty from one generation to the next.

He has advocated relocation as an effective anti-poverty solution, and repeatedly warned against needless formalities, red tape.

Yuri Tavrovsky, a sinologist and professor at the Peoples’ Friendship University of Russia, noted China’s anti-poverty fight has obviously gathered pace under Xi’s leadership.

No single poor to be left behind

Xi is no stranger to poverty. As a teenager and young adult, he spent seven years with peasants on the Loess Plateau where he lived in cave-like adobe houses and slept on a flea-infested bed on clay stove.

He joined the CPC in the village of Liangjiahe, and had his first experience as a grassroots-level CPC secretary there.

Xi once said his biggest dream back then was to make it possible for the villagers to have meat on their plates, which was a luxury during those days before the rise of China.

In his 80 domestic inspection tours over the past eight years, he has seen some of the most remote and impoverished areas in the country.

Xi has stressed that “no one should be left behind”. In the first four years as CPC chief, he had visited China’s 14 “contiguous impoverished areas.” At times he had to travel by plane first, and transfer to train and car before reaching the remote villages.

“What impresses me most is that Xi always puts people’s well-being first,” said Zhao Ruqi, an official who worked with Xi in Fujian.

In 2016, when visiting a village in Ningxia, Xi was seen checking the shower facilities in a villager’s home, and was happy to learn that the family had a solar water heater.

Recalling his early trips to some poor areas, Xi once said his heart sank when he saw the bumpy and rugged roads, harsh living conditions of the locals and heard stories of children dropping out of school, and patients not getting timely medical treatment and attention.

“But when I went to poor villages in recent few years, I saw substantial changes,” Xi said at the March symposium. “Seeing the smiles of the people, I feel delighted.”

The number of Chinese living in poverty has dropped from 98.99 million to 5.51 million in the seven years since 2013.

UN Secretary-general Antonio Guterres has remarked that China made the greatest contributions to world poverty alleviation in the past decade.

In China, the per capita net income of the poor has more than doubled – rising from 4,124 yuan in 2016 to 9,057 yuan in 2019, registering an average annual growth of 30%.

Rural people are seeing a significant improvement in their lives and standard of living. The development of rural industries has changed lives, as has relocation of villages. In the past five years, more than nine million rural poor in China have been moved out of inhospitable areas.

Yang Qingzhong recalled that his family of six had to cram themselves into a tiny mudbrick house in mountainous Guizhou Province.

In 2018, the family moved into a spacious modern apartment in town, allocated by the government. And he found a job in a workshop near his new home, making rattan chairs.

All over the country, rural infrastructure, education and health-care have improved. Some rural hospitals partner with their metropolitan counterparts to offer high-quality medical services to rural residents.

“Illness-induced poverty is one of the toughest problems in rural areas,” said Hu Yi, head of the public hospital in the county of Zhenxiong in Yunnan Province. “Now they don’t have to travel far to get treated, not even for serious illness.”

Benefiting from the poverty eradication programmes, some ethnic minorities – residing in the country’s remote areas in southwestern corners – have also experienced positive changes in their life.

But China under Xi’s leadership is not going to stop at poverty eradication. “Poverty eradication is only the first step; better days are still ahead,” Xi said in a letter to the Dulong ethnic minority group, congratulating the Dulong people for collectively shaking off poverty.

Xi has reminded his people that shaking off poverty is not the finishing line, but the starting line of a new life and new endeavour.

Revisiting Hunan in September, Xi said China must establish a long-term strategy to prevent any relapse into poverty. Among the plans being implemented in China are rural revitalisation programmes and economic development to build a moderately prosperous society. — Xinhua (Compiled by HO WAH FOON

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