What do two sessions mean for domestic, global economies?
www.globaltimes.cn
China has set the date for this year’s “two sessions” – the annual meetings of its top legislative body and top consultative body – in late May.
Considering the rapid victory the country has made in its fight against the coronavirus and progressing toward economy recovery, setting targets and the work focus for social and economic development for the year in late May may seem a little belated. However, the delay was an adjustment that had to be made according to China’s actual situation amid the pandemic.
The halt of economic activity caused by the outbreak of the coronavirus in the first quarter was a sudden and unavoidable impacting factor. Taking the outbreak into consideration, late May is equivalent to late February in normal years, which is close to the regular dates for the two sessions.
In terms of economic growth, if the first quarter’s contraction is not included, this year’s GDP growth would easily remain above 5 percent.
The two sessions will reinforce the victory China won over the coronavirus. The meetings are expected to fully expedite economic recovery across the country.
The upcoming two sessions are expected to focus on two economic topics. First they will look at how to coordinate the scientific fight against the virus, a full economic recovery and people’s livelihoods. Second, they will set work priorities, targets and tasks for this year’s national economic and social development.
How China responds to the complex and changing international situation will also become a major focus of the two sessions. Some in the US, Japan and European countries have called their companies to move their factories out of China, in part to shift blame. The relationship between China and the world and the relationship between the world’s biggest powers will be important topics.
Setting a date for the two sessions indicates China’s economic recovery is being fully accelerated. It is important that the fight against the epidemic maintains its usual mindset. Following the two sessions, the transportation of people and goods will become smooth, work resumption will speed up, investment will be fully restored and consumption investment imports will be normalized. China’s capacity utilization rate will also speed up its return to its level before the outbreak. If consumption and investment accelerate, orders will naturally increase.
The whole world is now grappling with the severe impacts of the pandemic, and many countries are facing a dilemma. They want to resume work as soon as possible but fear the pandemic will become more rampant. The convening of China’s two sessions and the overall accelerated recovery of the country’s economy will undoubtedly inject a positive energy into a gloomy global economy.
The author is chief research fellow with the China Center for International Economic Exchanges. bizopinion@ globaltimes.com.cn