How to read Li Keqiang’s 20,000-word annual report in two minutes
It takes China’s premier 90 minutes to deliver his government work report, but you can cut to the chase in far less time
Chinese Premier Li Keqiang is likely to put stability above all policy goals when he presents his annual report on Sunday, ahead of the once-every-five-years reshuffle of the Communist Party leadership late this year.
Li’s government work report will give the outside world Beijing’s assessment of the country’s economy and its foreign and defence priorities – which are particularly uncertain this year with the new US administration of Donald Trump, European national elections and Britain’s looming exit from the EU.
Past reports have also made brief comments about Hong Kong affairs, which have often struck a nerve with city residents. Hongkongers will be especially wary now, weeks ahead of an election for the next chief executive.
How to read Li’s annual government report
It often takes Li about an hour-and-a-half to read his 20,000 word annual report out loud, to lawmakers and political advisors. But there are short cuts you can take to get the highlights in just a few minutes.
First of all, skip the first half. It is a review of last year’s achievements.
Then come the government’s economic targets and its macroeconomic policy for this year. You will get Beijing’s projections on growth, inflation, employment, the fiscal deficit and monetary policy in the next ten paragraphs.
Now, flip to the second-last page.This is where the premier often talks about policies for the upcoming year on foreign affairs, defence and Hong Kong and Taiwan affairs. This part of the report tends to be highly scripted.
If you want to know more about Beijing’s social policies and other political subjects, you may wish to flip back a few pages – or read South China Morning Post reports for a more in-depth understanding of these issues.
What to expect in this year’s report
With stability placed above all else, Li is likely to push policy continuity on “supply-side” economic reforms, nurturing innovation and entrepreneurship, and the ongoing urbanisation programme.
He is also likely to touch on reforms in the financial sector, considering the recent high-profile statements about targeting “crocodiles” – tycoons who pull financial strings behind the curtains.
The premier may also discuss Beijing’s measures to push its “One Belt, One Road” trade strategy, and its policy on foreign investments amid global concerns over trade protectionism.
Past pledges
For your handy reference, we have also combed through what Li Keqiang’s cabinet has pledged in the past three years’ reports.
Promises kept: growth targets, job creation, poverty reduction
Beijing sets clear yearly targets for annual economic growth, creating urban jobs and reducing the rural population that lives under the poverty line. And it has kept these promises.
The report promised growth of about 7.5 per cent in 2014 and 7 per cent in 2015, with the actual growth at 7.4 per cent and 6.9 per cent. The pledge for last year was growth ranging from 6.5 per cent to 7 per cent; actual growth was 6.7 per cent.
Beijing also kept its promises to start building seven million low-income housing units in 2014 and 7.4 million in 2015, although it stopped setting clear targets for this last year.
Pledges missed: reforming state enterprises, cooling the property market
Li has vowed to reform state-owned enterprises every year in his report, but so far we have only seen limited pilot programmes to allow the market to play a bigger role in SOEs. Meanwhile, President Xi Jinping has repeatedly emphasised letting the party play a bigger role in state-run firms, which is seen as contradictory to the goal of reform.
The premier also promised a healthy and stable housing market in each of the last three reports, a vague pledge that has not been met. In Hong Kong’s neighbouring city of Shenzhen, for example, home prices grew by 39 per cent in 2015 and 56 per cent last year. Homes in Shanghai and Beijing, already among the country’s most expensive, shot up in price by 20 per cent last year.
