China’s annual parliament meeting to close
China’s National People’s Congress (NPC) will today conclude its annual meeting.
This year’s summit has taken on additional importance due to Beijing presenting its novel five-year development plan (2021-2025), the 14th such economic blueprint in the history of the People’s Republic of China. Amid a hardening trade war between the US and China, the new five-year plan emphasises enhancing Chinese self-sufficiency. In 2020, President Xi Jinping outlined his “dual circulation” strategy aimed at curtailing Beijing’s dependency on external markets and key technology.
The new economic program indicates a heightened focus on boosting domestic demand, reinforcing Beijing’s supply chains and increasing high-value technological innovation, such as semiconductors and artificial intelligence. In light of Beijing’s 2060 net-zero carbon emissions commitments, the five-year plan on the energy sector underscores new investments in renewables projects. Commitment to an additional 1200 Gigawatts worth of solar and wind capacity by 2025 will heighten the already robust investor appetite in China’s fast-growing renewables sector. Despite the emphasis on sustainability, however, the new five-year plan raises questions regarding China’s ability to meet its net-zero pledge as there is little reference to weaning off coal. Attention to self-sufficiency signals that Beijing expects its geoeconomic conflict with Washington to endure for the foreseeable future.
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