On Monday, China opened the Fifth Session of the 11th National People's Congress (NPC) at the Great Hall of the People in Beijing.
Nearly 3,000 NPC deputies from across the country attended the opening meeting together with top Party and state leaders.
Chinese Premier Wen Jiabao delivered a government work report at the opening meeting covering major targets for 2012, fiscal and monetary policies, price control, agriculture, economic restructuring, nuclear power, marine development, people's wellbeing, spending on education, cultural development, etc.
• Major targets set for 2012 included GDP growth of 7.5%, the creation of nine million new jobs in towns and cities, growth of the volume of total exports and imports by about 10%, etc.
• The broad money supply is projected to increase by 14%.
• RMB 1.23 trillion will be allocated for agriculture, rural areas, and farmers, RMB 186.8 billion more than last year.
• China will formulate and implement a strategy for marine development.
• Spending on education will account for 4% of GDP.
• The government will complete five million units of low-income housing and start construction on more than seven million units.
Please click here to read further highlights of the government work report and here for additional media coverage.
The Position Paper is the product of six months of consultation, which involved hundreds of companies and individuals from European businesses operating across China.
The report includes chapters on a wide range of sectors, including aviation, construction, information and communication technology, logistics, maritime transport, travel, banking & securities, insurance, private equity, etc.
The report also includes chapters on numerous cities and regions across China, including Beijing, Chengdu, Chongqing, Nanjing, the Pearl River Delta, Shanghai, Shenyang and Tianjin.
Highlights from the 2011/2012 Position Paper include:
• China's strategic importance for global companies is rapidly increasing. • Key goals outlined in China's 12th Five-Year Plan (2011-2015) such as upgrading the industrial sector, developing the service sector and encouraging innovation and green development match the strengths of European companies in managerial know-how, the provision of services and green and advanced technology. • The Position Paper brings together a significant number of recommendations for both Chinese and European policymakers.
Today, China is holding a grand gathering ceremony to commemorate the 90th anniversary of the Communist Party of China (CPC) at the Great Hall of the People in Beijing.
Chinese President Hu Jintao delivered the keynote address at the grand gathering, highlighting the major accomplishments of the Party over its long history.
Please click here to read more about President Hu's speech.
The CPC has seen its membership grow spectacularly during its 90-year history, and the CPC now stands as the largest political party in the world. At its founding in 1921, the Party had only 50 members, but that number had grown to 4.5 million when the People's Republic of China was founded in 1949. Wang Qinfeng, Vice-Minister of the Organisation Department of the CPC Central Committee, announced that the number of CPC members had surpassed 80 million by the end of 2010. More than three million people joined the Party last year.
Please click here to read more official coverage of the Party's 90th anniversary.
Kindly note that China Direct will be taking a break early next week returning Wed 06 July.
Finally China Direct would like to thank Ben Cooper, Policy Analyst, at CBI Beijing for preparing this note.
China and the UK signed trade deals worth £1.4 billion ($2.3 billion) during Chinese Premier Wen Jiabao’s three-day visit to the UK this week.
Premier Wen's visit demonstrates the growing commitment of both China and the UK to continue deepening bilateral ties through engagement at the highest levels.
Chinese Vice Premier Li Keqiang visited the UK earlier this year in January while UK Prime MinisterDavid Cameron led the largest ever British delegation to China last November.
Each of the three high-level visits in the past eight months have yielded impressive packages of new business deals.
CBI members were well-represented in the commercial agreements signed during Premier Wen’s visit this week. Highlights include:
CBI memberBG Group signed an agreement with Bank of China for $1.5 billion of new funding options to support the UK company's global growth plans.
CBI memberDiageo received approval from Chinese regulatory authorities in Beijing to acquire a majority stake in well-known Chinese liquor maker Shuijingfang.
CBI memberBenoy announced four new contracts for infrastructure projects worth over £10 million for the British company
CBI memberArup signed an MOU on railway cooperation with China Railway Engineering Corporation.
CBI memberNottingham University signed an agreement with China Aviation Industry Corporation to establish a new R&D centre at the University of Nottingham.
CBI memberUniversity College London signed an MOU with leading Chinese ethanol producer Tianguan Group on the development of a biogas research facility near the city of Nanyang in central China's Henan Province.
Premier Wen's visit also yielded a number of important government-to-government agreements, including:
The agreement reflects the UK government's desire to support Chinese investment into priority asset classes, such as infrastructure, as part of the new UKTI strategy to encourage more innovative and high-growth foreign direct investment into the UK.
UK Trade & Investment and China's Ministry of Commerce signed an agreement on trade in services, which will help support increased exports of UK services to China. The UK enjoys particular expertise in the services sector, and the country's services exports to China have been growing at an average of 17-18% annually over the last decade.
Please read more about the outcomes of Premier Wen's visit to the UK here and here.
China Direct would like to thank Ben Cooper, CBI Policy Analyst, for this contribution.
Airbus has a final assembly line for its aircraft in Tianjin, the first to operate outside of Europe. Goodrich runs a maintenance, engine buildup and supply chain management office in Tianjin. Thales runs the Thales (Tianjin) Radar Technologies Co., Ltd.
Growing by 17.4% last year, Tianjin is one of the fastest-growing cities in China, with the 5th busiest port in the world.
Pillar industries in the TAEA include aviation, logistics, manufacturing, automotive, electronics, finance, renewables and biopharmaceutical.
Offering companies access to competititve advantages such as an advantageous location, superb transportation links, highly-skilled human resources, a lower cost base, strong financial support, efficient business services, first-class infrastructure and a modern lifestyle, TAEA is a highly attractive destination for foreign investment in China.
Please click here to read a full presentation on the TAEA.
On 14 April, Chinese President Hu Jintao will meet with top leaders from Brazil, Russia, India and South Africa on the southern Chinese island-province of Hainan.
Discussions will cover economic, financial and security concerns. The summit is the third "BRIC" summit and the very first to include South Africa. Pleae read more here.
According to a short statement released by China's Ministry of Commerce, "The BRICS leaders will exchange views on international developments and economic, financial and development issues, and will also plan future cooperation among the BRICS countries."
India's Prime Minister Manmohan Singh is travelling to China today on an official visit as the two countries aim to deepen their economic ties. Mr. Singh will also attend the BRICS summit on 14 April. Please read more here.
In December 2010, China and India agreed to nearly double bilateral trade to $100 billion (£66 billion) by 2015, up from $60 billion in 2010, during Chinese Premier Wen Jiabao's visit to India. Mr. Wen traveled to India with a delegation of 400 Chinese business leaders, and $16 billion worth of business deals were signed.
With China and India accounting for 36.7% of the world's population and 10.4% of global trade, bilateral ties between the two countries hold significant implications for the rest of the world, especially given the fact that both have been playing a crucial role in driving the global economic recovery.
In 2010, India grew by 9.7% and China by 10.5%, significantly outpacing the rest of the world which grew by 4%. Read more here.
However, regional political tensions between China and India, including border disputes and China's perceived close relationship with Pakistan, are a potential barrier to the deepening of bilateral economic ties.
The CBI has maintained a presence in India since 2008. To contact our New Delhi office please e-mail Mr.Mark Runacres at: firstname.lastname@example.org
China Direct would like to thank Policy Analyst Ben Cooper for preparing this report.
[Image courtesy of www.news.cn; RL 3 from left front row]
CBI Director General, Richard Lambert, has today completed his three day visit to Beijing.
During his 72 hour visit Richard met with China's senior government leadership including Premier Wen Jiabao and Vice Premier Wang Qishan, co-led the 42 company strong UK business delegation and visited CBI member company BT's central Beijing HQ for the launch of its customer innovation centre.