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SCMP Reporters

This story has been made freely available as a public service to our readers. Please consider supporting SCMP’s journalism by subscribing and get 25 per cent off an annual plan.
China’s new premier, Li Qiang, holds his first press conference following the closing ceremony of the National People’s Congress on Monday.
As a long-time aide to President Xi Jinping, Li is expected to have more leeway to express his thoughts in public without being seen as a challenge to Xi.
His responses offer signs of what might lie ahead for the world’s second-largest economy.


Reporting by Jane Cai, Cyril Ip, Xinlu Liang, Kinling Lo, Josephine Ma, Frank Tang and Kawala Xie


As it happened: the takeaways from Chinese Premier Li Qiang’s ‘two sessions’ 2023 press conference

Chinese Premier Li Qiang at a news conference following the closing session of the National People’s Congress in Beijing on Monday. Photo: Reuters

News

China

Politics

The premier outlines the country’s position on a raft of issues from Hong Kong’s future to sustainable development
Li embarks on his first term in the job as China tries to emerge from the economic aftermath of three years of zero-Covid


Li embarks on his first term in the job as China tries to emerge from the economic aftermath of three years of zero-Covid.


Two Sessions 2023 (Lianghui)

Xi Jinping

National People's Congress (NPC)

China’s Communist Party

Communist Party politics

Live

Although the questions and who will ask them have been carefully vetted, Li is still expected to address many challenging issues, from China-US relations to Beijing’s position on the war in Ukraine.
There is also the matter of cross-strait relations as well as China’s ailing economy in the aftermath of the controversial zero-Covid policy.
Li might also be asked about how his government will deal with the ageing of society and the mounting pressure on the country’s old age pension and insurance schemes.


The big issues

Before becoming premier, Li Qiang was the Communist Party boss of economic powerhouses Shanghai and Jiangsu province, as well as governor of Zhejiang province.


Top jobs

Hundreds of members of the media assemble in the Golden Hall of the Great Hall of People.
It is masks on for the first in-person premier’s press conference in three years.



Masks on

Li Qiang enters the Golden Hall and takes his place to begin his first press conference as premier.



Li arrives

Li Qiang begins by pledging his loyalty to the Communist Party leadership under Xi Jinping.


Loyalty first

Asked about the priorities of his government, Li refers to the report delivered by President Xi Jinping during the party congress in October, saying the cabinet’s mission is to implement the visions laid out in that report.
Xi warns of fierce storms ahead as he vows ‘incomparable glory’ for China


Priorities

Li Qiang says the first mission of the government is to improve the well-being and livelihood of the people.
“People don’t monitor GDP every day, but they do care about the things close to them, such as housing, employment, social services, income and health services,” he says.



Close to home

Li says China will shift focus to high-quality development and improve science and technology. Development will be more people-focused and will aim to improve people’s lives in areas from housing and employment to medical services.



High-quality development

Li says achieving China’s target of around 5 per cent GDP growth this year will not be an easy task. Prospects for the global economy are not optimistic, and he warns of uncertain and unpredictable factors, and sometimes unexpected incidents.



No easy task

In answering his first question, Li refers to President Xi Jinping by name several times as well as many of his principles, such as the “two centennial goals” and “new development philosophy”.


Echoing Xi

Li stresses the importance of economic stability this year. He says a slew of policy “combinations” will be introduced for the macro economy, to stimulate demand and investment, as well as on reform and innovation, and to prevent risks.
China trade dips at start of 2023 test resilience of economic rebound


Policy ‘combinations’

China’s economic development is supported by many advantages, such as its massive market, Li says.
But its institutional strength is key, he says, referring to Xi’s term for institutions under Communist Party rule.



‘Institutional strength’

He draws on Chinese folklore to demonstrate the country’s resilience in the face of difficulties but concedes the economy faces challenges. He also points to signs of improvement, saying the economy will “break through the wind and waves and sail towards a brighter future”.


‘Wind and waves’

The benchmark Shanghai Composite Index has extended gains after the Chinese premier’s press conference began and is now up 0.7 per cent.



Shanghai index rises

The premier highlights Hong Kong and Macau as important elements of the country’s strategy.
Li says Hong Kong, an economic, financial, trading and shipping centre, and Macau, a world-renowned leisure and tourism centre, will be “strengthened and consolidated” with the backing of the central government.

He says both cities have had difficulties “due to various factors” but they were “temporary” and “arose in the course of development”, without elaborating.
He says “one country, two systems” as an “institutional safeguard” will be “fully, faithfully and resolutely” supported by the central government, which will back Hong Kong and Macau to integrate into the country’s overall development, grow their economies and livelihoods and strengthen their global competitiveness.
Xi Jinping calls for long-term prosperity of Hong Kong in first third-term speech


Hong Kong and Macau

Li says he worked for a long time in regions with thriving private economies so he is well informed about the problems the sector faces.
He says discussion and rumours that Beijing does not support private entrepreneurs are “inappropriate”, and that policies on the private sector have always been consistent.
He reiterates China’s commitment to protecting private entrepreneurs and creating a level playing field, and highlights new opportunities.



‘Inappropriate’ discussion

Li attempts to put a positive spin on the 11.58 million fresh graduates looking for work, saying it’s actually an advantage because they will bring vitality and energy to the economy.



‘Vitality and energy’

Asked about the fall in China’s population last year, the premier points to the quality and amount of talent in the country.
He says China has a highly educated population and therefore the demographic dividend has not disappeared.
China’s “talent dividend” is in the making, Li says, adding that people entering the labour market have an average of 14 years of education.



‘Talent dividend’

Li says he is aware of public concern regarding the country’s retirement policy, but he doesn’t elaborate on what changes might be ahead.



Retirement

Asked whether China’s Covid-19 measures were necessary, Li says the strategy was well conceived and gave the country time to develop vaccines and drugs.
“For over three years, under the leadership of the Communist Party, the Chinese people have united in fighting Covid-19, and now we have achieved major and decisive victory against the disease,” he says.
He does not use the term “zero Covid”.
He says China took less than two months to achieve a “smooth transition” in its Covid-19 response and the shift was a “remarkable achievement.
Beijing hails ‘decisive victory’ over pandemic in ending zero-Covid policy


Covid response

On Taiwan, Li says Chinese on both sides of the Taiwan Strait are members of the same family.
Beijing will promote cross-strait economic and cultural cooperation on the basis of the one-China principle and “1992 consensus”.
He says Beijing will encourage more Taiwanese businesspeople to come to the mainland, and that normal exchanges between the two sides of the strait are Beijing’s aspiration and require joint efforts.
Beijing takes conciliatory tone on Taiwan with call to ‘advance’ exchanges
He mentions the importance of normalising exchanges between the two sides, without saying if Beijing is willing to have dialogue with the existing Taiwan administration under the pro-independence Democratic Progressive Party.
Official exchanges have been suspended since Tsai Ing-wen became Taiwan’s president, though Beijing has encouraged people-to-people exchanges and those at local government level.


Taiwan exchanges

On rural development, Li underlines the need to protect the environment and preserve the distinctive features of the countryside.
He also says farmers should be encouraged to take the initiative in revitalising the countryside.
Addressing farmers directly, Li says the government’s policies in support of grain production will only increase.
He encourages farmers to grow more grain “so as to make sure the rice bowl of the 1.4 billion Chinese people will always be firmly held in our own hands”.




To the countryside

Li says China’s reform and opening-up enabled the country to develop and has had an impact on the whole world.
He says most foreign businesses are optimistic about the prospects in China and that it is “still the highland for foreign investment”.
“Regardless of external changes, we will unswervingly pursue our ‘opening-up’ policy,” Li says.
“China will only open itself wider to the world and we will provide better services to all,” he says. “An open China, and China in the process of constant development, welcomes investment from all over the world.”



‘An open China’

Li says he will not reiterate Foreign Minister Qin Gang’s comments in his press conference last week about US-China relations.
But he hopes the agreement between presidents Xi Jinping and Joe Biden on the sidelines of last year’s G20 meeting can be turned into action.
Trade between China and the United States reached a record high last year and the economic relationship between the two countries is dependent and mutually beneficial, he says.
Xi Jinping accuses US of leading West to suppress China’s development
The idea of “decoupling” is just hype, he says, adding that there are many areas in which China and the US can work together.
“Suppression does no good to either side,” he says.



China-US ties

Li has highlighted his experience in different parts of China during the press conference, pointing to interaction with foreign investors when he was Shanghai party boss and interaction with private entrepreneurs when he was a top official in the provinces of Zhejiang and Jiangsu.
He says that when he was in Shanghai, where more than 70,000 foreign companies are based, many of them, including American firms, told him they were optimistic about the future of the city and of China.
‘He has room to do something great’: what to expect from China’s next premier


‘Optimistic’ about future

Li also calls on government officials – especially young cadres “sitting” in government offices – to visit local communities to solicit public opinion.
And he says that “when dealing with matters of administration and approvals, local governments should not just slam on the brakes but hit the accelerator”, referring to criticism of local officials who are reluctant to make decisions.


Public opinion

Li Qiang ends the press conference with a commitment to implement the policies decided by the Communist Party’s Central Committee.
He refers repeatedly throughout the gathering to Xi Jinping’s and party documents.


Final vow

The main points from Premier Li Qiang’s press conference:

China will shift focus to high-quality development and improve science and technology


Achieving the 5 per cent economic growth target will not be easy, and the Chinese government will introduce policies to stimulate demand and investment


Hong Kong has a key role as a financial, trading and shipping centre


The Chinese government has supported private business, and talk that China is discouraging private entrepreneurs is “inappropriate”


China’s Covid-19 strategy was well conceived and gave the country time to develop vaccines and drugs


Decoupling between China and the US is just “hype”


