NATION FOCUSES ON QUALITY DEVELOPMENT

China's decision not to set a GDP growth target this year does not mean it has attached less importance to economic growth, but instead shows the authorities are paying greater attention to high-quality development, economists said after Premier Li Keqiang delivered the Government Work Report to the opening of the third session of the 13th National People's Congress on Friday.

In the report, Li said China will not set a GDP growth target for this year and will take a number of forceful financial measures to shore up the economy, which has been hit by the COVID-19 pandemic.

President Xi Jinping, who is also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, and other leaders attended the meeting at the Great Hall of the People in Beijing.

Li acknowledged that the world's second-largest economy faces "difficult factors" and "uncertainties" due to the spread of the novel coronavirus, which has sharply reduced global demand and seriously dampened economic activities.

"We have not set a specific target for economic growth this year," he said. "This is because our country will face some factors that are difficult to predict in its development due to the great uncertainty regarding the COVID-19 pandemic and the world economic and trade environment."

Sun Guojun, a senior official at the State Council Research Office who participated in the drafting of the Government Work Report, said,"Without a target, it does not mean that economic growth is unimportant or the government will allow the economy to slide out of the proper range."

The premier said the nation will focus on "ensuring stability on the six fronts and security in the six areas" this year.

China's policy of "ensuring stability on the six fronts" refers to employment, finance, foreign trade, foreign investment, domestic investment, and market expectations.

The policy of "security in the six areas" means safeguarding employment, people's livelihoods, the development of market entities, food and energy security, the stable operation of industrial and supply chains, and the smooth functioning of society.

By implementing those policies," we will be able to keep the fundamentals of the economy stable", Li said.

Zhang Ming, an economist at the Chinese Academy of Social Sciences' Institute of World Economics and Politics, said that while no specific target for GDP growth has been set, the focus on the "six fronts" and "six areas" showed the top authorities have the worst-case scenario in mind as they work for the best results.

XI: PARTY MUST ALWAYS SERVE PEOPLE

The people-centered development philosophy demonstrates the belief and mission of the Communist Party of China, and it must be unswervingly upheld, President Xi Jinping said on Friday.

The CPC does not have any exclusive interests for itself, and it has put the people's interests in first place all the time, said Xi, who is also general secretary of the CPC Central Committee.

Xi made the remarks while taking part in a meeting with deputies from the delegation of the Inner Mongolia autonomous region to the third session of the 13th National People's Congress.

Since the very beginning of the novel coronavirus outbreak, the Party has upheld the principle of putting the people's lives and health as the top priority, mobilized the most excellent doctors, the most advanced equipment and the most urgently needed resources across the nation, and spared no efforts to treat patients, with all medical costs covered by the country, Xi said.

The people's lives and health should be protected at all costs, Xi said, adding that the government should make continuous efforts and remain alert on disease control and prevention to prevent a resurgence of COVID-19.

The people are the most solid foundation for the Party's governance, Xi said. In the fight against the disease, the people across the nation have formed unshakable forces under the Party's leadership, he added.

Xi said officials must always keep in mind that their power is granted by the people, and that power can only be used to bring benefits to the people.

The Party has taken strong measures to punish corrupt behavior since the 18th National Congress of the CPC in 2012, Xi said, adding that more efforts should be made to fight against formalism and bureaucracy.

The aim of promoting economic and social development is to meet the people's aspiration for a better life, and officials should put the people's livelihood at the heart of their work and help the people address issues they are most concerned about, including employment, education, healthcare, housing, pensions, food safety and social security, Xi said.

He encouraged officials to make continuous efforts from one year to another to ensure the people gain tangible benefits.

Five deputies from Inner Mongolia delivered speeches during the meeting on issues such as poverty reduction, grassland ecological protection, the function of Party branches, animal disease prevention, ethnic unity and education.

During the discussion, Xi also stressed the importance of issues such as ethnic unity, poverty reduction, the employment of college graduates, migrant farmers and veterans, the improvement of the disease prevention system, and the protection of the ecological environment.

In January 2018, Xi was unanimously elected by the People's Congress of the Inner Mongolia autonomous region as a deputy to the 13th National People's Congress.

On Friday afternoon, Li Zhanshu, Wang Yang, Wang Huning, Zhao Leji and Han Zheng, who are all members of the Standing Committee of the Political Bureau of the CPC Central Committee, took part in meetings with the delegations of the regions that elected them to the NPC.

XI VISITS POLITICAL ADVISORS, JOINS DISCUSSION AT ANNUAL SESSION

President Xi Jinping on Saturday morning visited national political advisors from the economic sector attending a joint group meeting at the third session of the 13th National Committee of the Chinese People's Political Consultative Conference.

Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, joined them in the discussion and heard their comments and suggestions.

CIVIL CODE WILL ADVANCE RULE OF LAW, SAY LEGISLATORS

China's first draft civil code, which is under review at the annual session of the top legislature, is essential to comprehensive advancement of the rule of law and will offer stronger protection of people's fundamental interests, national lawmakers said.

A key political and legislative task raised by the central leadership, the draft, with 1,260 articles, has been submitted to the third session of the 13th National People's Congress.

"Since the founding of the People's Republic of China, generations of Chinese people have yearned for a civil code that they could truly call their own," said Wang Chen, vice-chairman of the NPC Standing Committee, while explaining the draft to national lawmakers on Friday.

He said the Communist Party of China and the government had begun work on formulating a civil code on four occasions.

"Through years of hard work many achievements have been made in China's development of civil law, laying solid foundations for the formulation of a civil code," he said. "As we embark on a new journey to uphold and improve the Chinese socialist system and modernize China's national governance system and capacity for governance, compilation of the civil code is a move that will have great and far-reaching significance."

The compilation of a civil code is also a necessity for improving the basic socialist economic system and promoting high-quality economic development, as well as for enhancing public well-being and protecting the fundamental interests of the people, he said.

Wang said the civil code would be the first law of the People's Republic of China defined as a code.

The full text of the draft consists of general provisions and six sections on property, contracts, personality rights, marriage and family, inheritance, and torts.

Li Zongsheng, a lawmaker from Liaoning province, said the draft code will give stronger legal support to people's personal and property rights after its adoption.

"It's the right time for our country to have such a civil code, as our legislative capacity is strong enough," said Li, also deputy head of the Liaoning Lawyers Association.

"I believe having such a code will contribute to business resumption and prosperity, especially in the current critical moment of epidemic control and economy recovery."

Xiao Shengfang, another NPC deputy and a lawyer from Guangdong province, said on Friday that the civil code responded to public concerns and offered answers to many important issues people are concerned about.

For example, the draft code prohibits people from throwing objects from high-rise buildings. Other hot issues, including stronger protection of personal information and banning loan-sharking, have also been written into the draft.

PROACTIVE FISCAL POLICY TO LIFT GROWTH

China will adopt a more proactive fiscal policy by expanding central government budget deficit and increasing fund transfers to local governments to boost investment and maintain stable economic growth, according to the 2020 Government Work Report.

The central government has planned a fiscal budget deficit of about 3.76 trillion yuan ($530 billion) this year, an increase of 1 trillion yuan from last year. The deficit-to-GDP ratio is projected at more than 3.6 percent, compared with 2.8 percent last year.

In addition, China will issue 1 trillion yuan of special central government bonds to mitigate the COVID-19 epidemic effect.

The proceeds of the special treasury notes and the increased fiscal deficit will all be transferred to local governments, Premier Li Keqiang said on Friday while delivering the Government Work Report during the opening of the third session of the 13th National People's Congress, the country's top legislature.

The central government will also increase funds transferred to local governments by 12.8 percent to support infrastructure investment and counter economic fallout, Finance Minister Liu Kun told reporters after the opening of the NPC session on Friday.

It will be the highest growth rate till date in the transfer of payments to local governments and is aimed at safeguarding employment and people's livelihoods, as fiscal income is projected to decrease this year due to the COVID-19 epidemic, said Liu.

He said that local governments' fiscal income is projected to reduce by 800 billion yuan to 900 billion yuan this year and some regions may face severe pressure.

Meanwhile, the government has also raised the quota for local government special bonds to 3.75 trillion yuan to boost investment and shore up economic growth.

China's fiscal stimulus package could reach a total of 8.5 trillion yuan if the expanded central government budget deficit, the issuance of the special treasury notes and the local government special bonds are included, said Luo Zhiheng, former chief macroeconomic researcher at the Evergrande Research Institute.

The policy stance is an indication that fiscal policy has played a lead role in offsetting the economic risks and will help realize the "six priorities" laid out by the government, including safeguarding employment and people's livelihoods, Luo said.

Liu Shangxi, head of the Chinese Academy of Fiscal Sciences under the Finance Ministry, told China Daily that the funds for the 1 trillion yuan special treasuries may come from some targeted commercial banks.

Liu, who is a member of the National Committee of the Chinese People's Political Consultative Conference, the nation's top political advisory body, said that the current market liquidity is sufficient to support the new issuance and the issuance should avoid side-effects, such as growth in interest rates.

Yang Weimin, former deputy head of the Office of the Central Commission for Financial and Economic Affairs, said the expanded fiscal deficit will be used to safeguard employment and livelihoods, especially in the city-and county-level governments, which is an innovative fiscal method.

More monetary actions are needed to coordinate with the fiscal stimulus measures, such as further encouraging commercial banks to reduce the cost of loans, especially for small businesses, said Yang, a member of the Standing Committee of the 13th CPPCC National Committee.

CHINA'S SOLID ECONOMY STILL INTACT, SAYS NDRC OFFICIAL

China has the capability, confidence and determination to continuously promote steady, healthy and sustainable economic development despite disruptions from the COVID-19 outbreak, the nation's top economic regulator said on Friday.

"Though the coronavirus outbreak has dealt a huge blow to economic activity, it will only have a temporary and limited economic effect," said He Lifeng, head of the National Development and Reform Commission, on the sidelines of the ongoing two sessions. "The fundamentals of China's sound economic growth remain unchanged and China has the ability to cope with the various risks and challenges due to the coronavirus outbreak."

Though the coronavirus outbreak severely impacted economic activity, the nation is gradually returning to normalcy. In April, the country's total added value of industrial enterprises above a designated size rose by 3.9 percent on a yearly basis, compared with the 1.1 percent decrease in March.

"The considerable progress is testimony to China's remarkable economic resilience, and its ability to withstand the pressure and pain amid the coronavirus outbreak," He said.

Responding to queries on China not setting an economic growth target for this year in the Government Work Report, the NDRC official said most of the indicators are not comparable with the previous year and hence it is difficult to predict the development pattern, largely due to the coronavirus impact.

"In fact, the quantitative economic indicators have been broken into related indicators in fiscal, monetary and other related policies," he said. "As China's economy is deeply integrated into the global economy, it is hard to predict the future development due to uncertainties from the globally spreading coronavirus pandemic.

"Under the current circumstances, not setting a specific growth target will allow us to be more focused on key tasks such as expanding domestic demand, ensuring 'six priorities' and stability in six areas for steady economic momentum as well as achieving the goal of building a moderately prosperous society in all respects."

TURBO-CHARGING TOURISM TO HELP LIFT MORE PEOPLE OUT OF POVERTY

Yuntiandu, a 430-meter-long and 6-meter-wide glass bridge hanging between two steep cliffs 300 meters above the ground in Zhangjiajie, Central China's Hunan province, has become a famous tourist destination attracting millions of visitors from home and abroad.

From planning to completion, Luo Siqing’s Grand Canyon Company experienced many difficulties. In recent years, China has rolled out a series of tax and fee reduction policies which benefitted small and micro-sized enterprises and start-ups. The policies have eased the burdens on Luo’s company. The money it saved was used to improve the infrastructure at the scenic spot.

As the 'spillover effect' of the scenic spot became more apparent, a large number of local villagers, who had gone away to work, returned home to start a business. The core scenic spot has directly raised 24 poor villages and 23,000 poor people out of poverty. From Jan-Sept 2019, the city's tourism-related industries reduced taxes by 132 million yuan ($19.13 million), benefiting 43,015 taxpayers.

In 2019, China introduced unprecedented tax cuts and fee reductions. These reductions exceeded two trillion yuan (about $287 billion), accounting for more than two percent of GDP and contributing about 0.8 percentage points of GDP growth.

Consequently, the business environment has significantly improved, with the benefits of the tax and fee cuts apparent in manufacturing and in medium- and small-sized firms. The inclusive tax reduction for small and micro enterprises (SMEs) stood at about 250 billion yuan.

The policy not only injects vitality into SMEs for their development, but also contributes to the country’s poverty alleviation campaign. But how does it achieve these goals? And what do business owners have to say about it?

This six-part series of stories themed around “tax reduction and fee cut in action” will tell you the answers.

THOUGHT FOR THE DAY

He who is too busy doing good, finds no time to be good. - Rabindranath Tagore