{"id":66536,"date":"2023-03-17T12:08:09","date_gmt":"2023-03-17T16:08:09","guid":{"rendered":"https:\/\/calendar.ccbc.com\/?p=66536"},"modified":"2023-03-22T22:55:22","modified_gmt":"2023-03-23T02:55:22","slug":"beijing-dispatch-22-2023-two-sessions-breakdown-and-implications-for-canadian-business","status":"publish","type":"post","link":"https:\/\/calendar.ccbc.com\/fr\/ccbc-insights\/beijing-dispatch-22-2023-two-sessions-breakdown-and-implications-for-canadian-business\/","title":{"rendered":"Beijing Dispatch #22 \u2013 2023 \u201cTwo Sessions\u201d Breakdown and Implications for Canadian Business"},"content":{"rendered":"[et_pb_section fb_built=\u00a0\u00bb1″ disabled_on=\u00a0\u00bbon|on|on\u00a0\u00bb admin_label=\u00a0\u00bbsection\u00a0\u00bb _builder_version=\u00a0\u00bb4.16″ disabled=\u00a0\u00bbon\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb][et_pb_row admin_label=\u00a0\u00bbrow\u00a0\u00bb _builder_version=\u00a0\u00bb4.16″ background_size=\u00a0\u00bbinitial\u00a0\u00bb background_position=\u00a0\u00bbtop_left\u00a0\u00bb background_repeat=\u00a0\u00bbrepeat\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb][et_pb_column type=\u00a0\u00bb4_4″ _builder_version=\u00a0\u00bb4.16″ custom_padding=\u00a0\u00bb|||\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb custom_padding__hover=\u00a0\u00bb|||\u00a0\u00bb][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=\u00a0\u00bb1″ fullwidth=\u00a0\u00bbon\u00a0\u00bb disabled_on=\u00a0\u00bbon|on|off\u00a0\u00bb _builder_version=\u00a0\u00bb4.16″ background_image=\u00a0\u00bbhttps:\/\/calendar.ccbc.com\/wp-content\/uploads\/2019\/06\/education-header.jpg\u00a0\u00bb custom_padding=\u00a0\u00bb||75px|\u00a0\u00bb z_index_tablet=\u00a0\u00bb500″ box_shadow_horizontal_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_vertical_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_blur_tablet=\u00a0\u00bb40px\u00a0\u00bb box_shadow_spread_tablet=\u00a0\u00bb0px\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb][et_pb_fullwidth_post_title author=\u00a0\u00bboff\u00a0\u00bb comments=\u00a0\u00bboff\u00a0\u00bb featured_image=\u00a0\u00bboff\u00a0\u00bb text_color=\u00a0\u00bblight\u00a0\u00bb disabled_on=\u00a0\u00bboff|off|\u00a0\u00bb _builder_version=\u00a0\u00bb4.16″ background_size=\u00a0\u00bbinitial\u00a0\u00bb background_position=\u00a0\u00bbtop_left\u00a0\u00bb background_repeat=\u00a0\u00bbrepeat\u00a0\u00bb text_orientation=\u00a0\u00bbcenter\u00a0\u00bb custom_padding=\u00a0\u00bb50px|||\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb][\/et_pb_fullwidth_post_title][et_pb_fullwidth_code _builder_version=\u00a0\u00bb4.16″ z_index_tablet=\u00a0\u00bb500″ global_colors_info=\u00a0\u00bb{}\u00a0\u00bb]<\/p>\n
By Noah Fraser<\/font><\/a> – Managing Director, China<\/i><\/span><\/span><\/center><\/div>\n[\/et_pb_fullwidth_code][\/et_pb_section][et_pb_section fb_built=\u00a0\u00bb1″ fullwidth=\u00a0\u00bbon\u00a0\u00bb disabled_on=\u00a0\u00bb||on\u00a0\u00bb _builder_version=\u00a0\u00bb4.16″ background_image=\u00a0\u00bbhttps:\/\/calendar.ccbc.com\/wp-content\/uploads\/2019\/06\/education-header.jpg\u00a0\u00bb custom_padding=\u00a0\u00bb||75px|\u00a0\u00bb z_index_tablet=\u00a0\u00bb500″ box_shadow_horizontal_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_vertical_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_blur_tablet=\u00a0\u00bb40px\u00a0\u00bb box_shadow_spread_tablet=\u00a0\u00bb0px\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb][et_pb_fullwidth_post_title author=\u00a0\u00bboff\u00a0\u00bb comments=\u00a0\u00bboff\u00a0\u00bb featured_image=\u00a0\u00bboff\u00a0\u00bb text_color=\u00a0\u00bblight\u00a0\u00bb disabled_on=\u00a0\u00bboff|off|\u00a0\u00bb admin_label=\u00a0\u00bbFullwidth Post Title – mobile \u00a0\u00bb _builder_version=\u00a0\u00bb4.16″ title_font_size=\u00a0\u00bb18px\u00a0\u00bb background_size=\u00a0\u00bbinitial\u00a0\u00bb background_position=\u00a0\u00bbtop_left\u00a0\u00bb background_repeat=\u00a0\u00bbrepeat\u00a0\u00bb text_orientation=\u00a0\u00bbcenter\u00a0\u00bb custom_padding=\u00a0\u00bb50px|||\u00a0\u00bb title_font_size_tablet=\u00a0\u00bb\u00a0\u00bb title_font_size_phone=\u00a0\u00bb\u00a0\u00bb title_font_size_last_edited=\u00a0\u00bbon|tablet\u00a0\u00bb z_index_tablet=\u00a0\u00bb500″ title_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb title_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb title_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb meta_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb meta_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb meta_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb box_shadow_horizontal_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_vertical_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_blur_tablet=\u00a0\u00bb40px\u00a0\u00bb box_shadow_spread_tablet=\u00a0\u00bb0px\u00a0\u00bb text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb][\/et_pb_fullwidth_post_title][et_pb_fullwidth_code _builder_version=\u00a0\u00bb4.16″ z_index_tablet=\u00a0\u00bb500″ global_colors_info=\u00a0\u00bb{}\u00a0\u00bb]\n
By Noah Fraser<\/font><\/a> – Managing Director, China<\/i><\/span><\/span><\/center><\/div>\n[\/et_pb_fullwidth_code][\/et_pb_section][et_pb_section fb_built=\u00a0\u00bb1″ _builder_version=\u00a0\u00bb4.16″ background_color=\u00a0\u00bbrgba(58,88,114,0.12)\u00a0\u00bb z_index_tablet=\u00a0\u00bb500″ box_shadow_horizontal_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_vertical_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_blur_tablet=\u00a0\u00bb40px\u00a0\u00bb box_shadow_spread_tablet=\u00a0\u00bb0px\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb][et_pb_row _builder_version=\u00a0\u00bb4.16″ z_index_tablet=\u00a0\u00bb500″ box_shadow_horizontal_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_vertical_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_blur_tablet=\u00a0\u00bb40px\u00a0\u00bb box_shadow_spread_tablet=\u00a0\u00bb0px\u00a0\u00bb collapsed=\u00a0\u00bboff\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb][et_pb_column type=\u00a0\u00bb4_4″ _builder_version=\u00a0\u00bb4.16″ custom_padding=\u00a0\u00bb|||\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb custom_padding__hover=\u00a0\u00bb|||\u00a0\u00bb][et_pb_text admin_label=\u00a0\u00bbArticle\u00a0\u00bb _builder_version=\u00a0\u00bb4.20.0″ width=\u00a0\u00bb90%\u00a0\u00bb module_alignment=\u00a0\u00bbcenter\u00a0\u00bb hover_enabled=\u00a0\u00bb0″ z_index_tablet=\u00a0\u00bb500″ text_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb text_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb text_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb link_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb link_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb link_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb ul_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb ul_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb ul_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb ol_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb ol_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb ol_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb quote_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb quote_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb quote_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb header_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb header_2_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_2_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_2_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb header_3_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_3_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_3_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb header_4_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_4_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_4_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb header_5_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_5_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_5_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb header_6_text_shadow_horizontal_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_6_text_shadow_vertical_length_tablet=\u00a0\u00bb0px\u00a0\u00bb header_6_text_shadow_blur_strength_tablet=\u00a0\u00bb1px\u00a0\u00bb box_shadow_horizontal_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_vertical_tablet=\u00a0\u00bb0px\u00a0\u00bb box_shadow_blur_tablet=\u00a0\u00bb40px\u00a0\u00bb box_shadow_spread_tablet=\u00a0\u00bb0px\u00a0\u00bb global_colors_info=\u00a0\u00bb{}\u00a0\u00bb sticky_enabled=\u00a0\u00bb0″]\n

The \u201cTwo Sessions,\u201d also known as the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), are widely acknowledged as the most crucial annual political events in China. The Two Sessions provide a platform for the Chinese government to announce its economic, social, and political goals for the year ahead, and to discuss key policy issues.<\/p>\n

 <\/p>\n

This iteration of China\u2019s \u201cTwo Sessions\u201d was of particular relevance to China watchers, both armchair and professional, as it featured major economic, security and governance policy shifts, but also the official anointing of several key individuals that the trade and investment community will be encountering regularly for the next 5, and likely 10, and very possibly 15 years.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

View West from Beijing\u2019s CBD, Noah Fraser – March 2023<\/em><\/p>\n

 <\/p>\n

Part I – Three High Level Takeaways<\/strong><\/p>\n

 <\/p>\n

1. Party over Everything, and Xi at the Helm<\/strong>
While far from a new concept, this rendition of the two sessions reaffirmed Xi\u2019s position at the top of the China org chart \u2013 unequivocally. Officially, Xi has been reappointed head of the military and President, in addition to his Party Chief role, and few would argue that he appears to be at the height of his power.<\/p>\n

 <\/p>\n

Beyond that, China\u2019s new standing committee a top to bottom roster of Xi acolytes, with his new ascendant Premier LI Qiang (not to be confused with similarly-named LI Keqiang), a longtime ally from early days in provincial positions, rising to the prime minister post from his former role as Party Secretary of Shanghai.<\/p>\n

 <\/p>\n

Furthermore, there is a blurring of lines now between Party and government through new oversight bodies and restructuring previously unseen, most obviously in verticals that are considered mission-critical. Whether this will result in a policy echo chamber or provide much-sought after stability and direction remains to be seen.<\/p>\n

 <\/p>\n

Based on the lack of clear successor candidates, the makeup of the, Party Standing Committee, the government State Council and the Politburo groups, we anticipate Xi would likely remain in office for at least two more terms \u2013 or until roughly 2033.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

Traffic on the Second Ring Road, Noah Fraser – February 2023<\/em><\/p>\n

 <\/p>\n

2. Economic Growth through a lens of Security<\/strong>
In his final work report, outgoing Premier LI Keqiang iterated the challenges China will face in making their 5% GDP growth target. Plenty of headwinds are being faced, including the external threat of a global recession and the specter of a rusty private sector creaking back to life after both restrictive policies and the COVID-zero hangover.<\/p>\n

 <\/p>\n

However, the decidedly pro-business remarks delivered at a press conference to close out the sessions by Premier LI Qiang gave most analysts something to cheer about. While taking a pragmatic and flexible tone, he mentioned his boss\u2019s name ad-nauseum \u2013 and while that implies he will toe the Party-line, it also indicates that his allegiance will earn him more agency and latitude, not less, behind closed doors.<\/p>\n

 <\/p>\n

Further commitments to opening up to more foreign investment were also indicated, which will be critical for China to accelerate out of the lurch, but more important than signaling will be consistency and continuity of pro-business policy implementation at the functional level.<\/p>\n

 <\/p>\n

All that being said, this economy-bolstering activity will clearly be exercised under the watchful eye of the security apparatus, which we learned at the 20th Party Congress in the fall of 2022. National security and stability will be of ultimate importance, and major decisions will aim to be better coordinated across departments to ensure strategic geopolitical alignment. Risks around debt accumulation, demography (including youth unemployment) and an increasingly complex multipolar external environment remain will have leaders guarded and cautious.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

Beijing\u2019s CBD from Ritan Park, Noah Fraser, February 2023<\/em><\/p>\n

 <\/p>\n

3. A New Team at the Top, though Some Familiar Faces<\/strong><\/p>\n

As with the Politburo and Standing Committee, Xi\u2019s closest allies have now risen to the State Council \u2013 regardless of experience. LI Qiang is the first Premier since Zhou Enlai to be named to the post without having already served as Vice Premier. DING Xuexiang, another longtime Xi man and trusted confidante, is the new Executive Vice Premier and number three. Party thought leader and strategist Han Zheng succeeds Wang Qishan as Vice President. While often thought to be figurehead roles, anticipate that HAN will still play an outsized role in foreign politics.<\/p>\n

 <\/p>\n

Also relevant for members is Mr. HE Lifeng, formerly with the National Development and Reform Commission and a Xi deputy from his Fujian days, becoming the new financial and economic czar. He slots into the job following predecessor LIU He \u2013 a critical posting for the business community to familiarize themselves with. He is the oldest member of the group at 67.<\/p>\n

 <\/p>\n

Three key roles for CCBC members to watch for have maintained their existing portfolios. Central bank governor Yi Gang, Minister of Finance LIU Kun, and Minister of Commerce WANG Wentao all retain their positions. The consistency here is an indicator that stability, both economic and financial, is paramount in the transition period \u2013 however, we expect there to be leadership changes in each file mid-five year cycle.<\/p>\n

 <\/p>\n

The State Council includes one woman \u2013 also an ethnic minority member (Bai) \u2013 Ms. SHEN Yiqin from Guizhou.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

Lanterns at Houhai Lake, Noah Fraser – January 2023<\/em><\/p>\n

 <\/p>\n

Part II \u2013 Hit List of Key Business Updates<\/strong><\/p>\n

 <\/p>\n

\u2022 GDP Growth Target Set at \u201cAround 5%\u201d<\/strong><\/p>\n

 <\/p>\n