NPC Discloses China’s Economic Plan of 6.5% Annual Growth

NPC Discloses China’s Economic Plan of 6.5% Annual Growth
Photo Credit: Reuters/達志影像
What you need to know

As the second-largest economy in the world, China usually influences the world when it changes the country’s policies. Closed on March 16, NPC & CPPCC Sessions 2016 disclosed important issues, economic goals and plans for China, including the thirteenth five-year plan and the Charity Law.

Compiled and translated by Shin-wei Chang

The NPC & CPPCC Annual Sessions represent two of the most important annual plenary national sessions in China and includes meetings between the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC). This year’s sessions started on March 3 and closed in Beijing on March 16 with a few crucial conclusions.

Initium Media reports, the social issues discussed in the NPC & CPPCC Sessions are not only closely related to the people, but also imply the direction of future development for China. Among them, there are several highlights worth noticing this year, such as the new five-year plan and the Charity Law.

The thirteenth five-year plan

People’s Daily reports, the legislators in the NPC have passed the thirteenth Five-Year Plan for 2016 to 2020, aiming to accelerate China’s economic growth.

China’s economic growth was 6.9% in 2015, marking the lowest in the last 25 years. However, China vows to create above 6.5% of economic growth each year and double the GDP of 2010 in 2020. In addition, Li Keqiang, premier of the State Council, also vowed to get 20 million of its people to get out of poverty.

People’s Daily reports, Gu Qingyang, an associate professor of Public Policy at the National University of Singapore, said a economic growth of 6.5% to 7% is possible because of China’s large market.

However, people have been pessimistic about the target growth. Le Xia, chief economist for Asia at Banco Bilbao Vizcaya Argentaria (BBVA), says, “It might still be challenging for China to reach a growth of 6.5%. A goal of 5% to 6% seems more practicable.”

China’s first Charity Law

The Wall Street Journal reports, the rubber-stamp delegates in NPC passed the Charity Law on March 16. People’s Daily reports, without sufficient regulations the transparency of charities is suspicious and donation frauds have occasionally made headlines. Thus, the Charity Law focuses on regulating the management of charitable institutes and guarantees tax benefits for charitable activities.

On March 4, NPC spokesman Fu Ying pointed out charity funds have risen from RMB$10 billion (approximately US$1.2 billion) to RMB$100 billion (approximately US$12 billion) from 2006 to 2014 and the importance of the Charity Law cannot be underestimated.

However, China Times reports, there are rules related to national security in the Charity Law. It says authorities would step in to investigate the organization if its charitable events endanger national security or public interests. As some human right lawyers have “disappeared” in China, some critics also believe that the law would be used for further crackdown of voices against the government.

Edited by Olivia Yang

Sources:
“Lawmakers approve China’s five-year plan against economic headwinds” (People’s Daily Online)
“China expected to pass its first charity law" (People’s Daily Online)
“The Good–And Bad–About China’s New Charity Law" (The Wall Street Journal)
“Xi Says China Needs at Least 6.5% Growth in Next Five Years” (Bloomberg Business)
People’s Daily Online
Liberty Times Net
BBC Chinese
China Economic Net
China Times
China Times