NPC session: Lawmakers foresee tough year ahead for reform work

World
Europe

When Chinese Premier Li Keqiang announced a lowered annual economic growth target of 6.5 percent on Sunday, it was a reflection of reforms that many believe will cause short-term pain but lead to long-term growth.

These hopeful souls include Fang Liping. She has worked for steel maker Hbis Tangsteel for over 30 years and is also a delegate at the National People’s Congress (NPC) session at which Li announced the target during the annual government work report.

China’s steel demand has been dropping and prices have nosedived. The government is cutting overcapacity to steer the economy towards consumption.

“The economic slowdown has pushed [Hbis Tangsteel] to restructure its production, and upgrade technology to improve quality. Products must meet market demand, or else they can’t be sold. Some furnaces have already been shut down,” said Fang.

Across China, many companies are shutting down, or switching to other industries. Cutting overcapacity is a national reform priority, as excess capacity weighs on overall economic performance. So how to carry out this overhaul is high on the agenda as some 3,000 lawmakers meet for the NPC session.

The world was watching as the government announced this year's growth target for the world's second-biggest economy, and it will keep watching as the NPC session continues. Given increasing uncertainties at home and abroad, interest has been keener than ever.

Li Keqiang said the emphasis is on "seeking progress while maintaining stability." The goal is a growth model driven more by new engines such as innovation, services, and consumption, while China’s leaders promise that supply-side structural reform will also be deepened.

Over the next two weeks, NPC delegates will review the work report and their votes will determine the guidance for reforms this year.