Two Sessions 2016: Structural reforms – technology boost and Tax cuts
As the two sessions met, there are concrete signs of policies that are being formalized for the future direction of Chinese economy. The National committee (CPPCC) met to discuss the future of Chinese growth. Some formal goals were outlined at the outset. To communicate the economic future of China was one of them. Wang Guoqing, the spokesperson highlighted the need to raise tough questions, which will give the world an idea about the true economic conditions prevailing, and will help in dispelling myths about Chinese growth. As I wrote previously, it will be a session to underscore policies to highlight growth potentials, as that is the prime concern of Chinese policy makers now. Addressing the 6.9 percent growth, chairman Yu Zhengsheng mentioned that while it is still more than the entire world, except India perhaps, it is imperative that growth is stimulated and President Xi Jinping said that annual growth of at least 6.5 percent would be required to reach China’s goal to double its 2010 GDP and per capita income by 2020.
Some thought provoking proposals were debated and discussed, like using PV on rooftops, as a means to poverty alleviation. The idea was from Hanergy’s chairman Li Hejun, who said that it is the most potent way for areas without stable power supplies, or remote areas, and it is in line with the poverty eradication plan of the 13th five year plan. Another aspect that was focused was the promotion of a green shared development concept. This coordinated approach and green growth has been the focus for a few years now, considering China’s attempt at pollution control and develop clean energy.
However, two concepts struck me as the key of this year’s two sessions.