Pragmatic work plans key for China in post-pandemic pathways
Even prior to the COVID-19 pandemic and lockdown measures, the world economy had already slowed down – it is now clearly decelerating.
China and its economy were no exceptions as victims of this global scourge. Yet China seems to have gradually emerged from the COVID-19 epidemic faster than many others. This is a tribute to its drastic but ultimately effective epidemiological control measures.
All eyes are on China. This is because in recent years China has become the de facto engine for economic growth for much of the world.
By contrast, the US, though endowed with appreciable growth before the pandemic, has more or less retreated into protectionist indulgence. It is with these heavy-hearted backgrounds that many observers watch the country’s latest two sessions with much anticipation. It is during these meetings that the Chinese government typically rolls out its latest socioeconomic policies, many of which have profound international implications.
In particular, the Government Work Report delivered by Chinese Premier Li Keqiang on Friday was considered the centerpiece of summarizing these policies.
The report was one of the most succinct in recent years, yet it still laid out the outlines of a comprehensive recovery plan that will affect both China and the world. The overall theme for this year’s report could perhaps be distilled as “seeking progress amid stability.”
By that Li meant stabilizing first and foremost jobs, improving the livelihood of the people, and promoting consumption, thereby getting the market to chug along. While these are tried and tested steps in pushing economic recovery in a market economy, albeit with Chinese characteristics, they nevertheless assure both domestic and foreign stakeholders that China remains steadfastly committed to its own avowed market-driven economic operations.
Some may ponder this year’s conspicuously missing economic growth targets, which in past years encapsulated national economic goals. Li did not dodge the “missed” issue. Instead, he chooses to address it head-on, explaining that it was unrealistic to set an overarching growth target amid global uncertainties brought about by the pandemic that is still ravaging a large part of the world.
Frankly, I think “missing” the target is a very pragmatic decision that should be considerably repeated even after the pandemic. Slower growth affords China much needed time and space to qualitatively improve its economy for greater heights to scale in longer terms.
China no longer needs to remain fixated on chasing short-term quantitative targets at all costs. It now leads the world in 5G technology, electronic commerce and artificial intelligence, which are all essential elements in the explosive growth of the not so distant future.
Some of the specific fiscal and socioeconomic measures Li announced are very pragmatic models that both developed and developing countries should consider adopting as they embark upon the road to recovery after the pandemic.
Countries trading heavily with China or closely integrated with China’s supply-chain locomotive, such as those in neighboring Southeast Asia, breathed sighs of relief as Li promised the broadening of China’s opening-up of its economy for foreign participation.
This includes national treatments for foreign businesses, and increasing of export credits under the China-proposed Belt and Road Initiative, which remains a keystone of China’s foreign policy. Indeed, China and Southeast Asia should redouble their joint efforts in promoting free trade, including concretely demonstrating their benefits on the road to recovery.
Toward the end of the report, Li emphasized the importance of improving public health capabilities and the safety and security of production, drawing lessons from the pandemic. These ring true to almost all countries around the world as we continue to battle against the coronavirus. Only when all of us work hard to ensure the fundamentals of preserving life can we attempt to reach the lofty goal of a community with shared future.
The author is senior fellow with Singapore Institute of International Affairs and principal adviser at Malaysia’s Pacific Research Center. opinion@globaltimes. com.cn