Implies confrontation with technological self-reliance
The defense budget is to increase this year, too
Abolish the press conference with the Premier at the NPC closing
A more solidified message is “Xi Jinping’s one-man regime.”
China strongly criticized the United States for implementing policies such as supply chain separation and exclusion aimed at controlling the export of advanced technologies and hinted at responding with technological self-reliance. While expressing efforts to enhance Sino-US relations regardless of the winner of the US presidential election in November this year, China warned the US not to interfere in China’s internal affairs by provoking Taiwan. Amidst major global countries increasing their defense budgets, China is also planning to continue expanding its defense budget. The two conferences (National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC)), where such discussions will continue, are set to open on the 4th and close on the 11th. This schedule has been shortened by about two days compared to previous years. The domestic and foreign press conference with the Premier of the State Council, which used to be held on the closing day of the NPC, a major event of the two conferences, will not be held this year, and Xi Jinping’s “one-man regime” is expected to become more solidified.
At a pre-NPC press conference held at the Great Hall of the People in Beijing today, Lou Qinjian, the spokesperson for the 14th Second Session of the NPC, pointed out that actions such as separating or excluding supply chains and expanding entry barriers hinder the advancement of global science and technology, damage industrial development, and widen the development gap in the world. While acknowledging the intensifying competition among countries in advanced industries such as semiconductors and artificial intelligence (AI) as “natural,” Lou did not conceal discomfort towards the United States, which embarks on de-risking with China and is leading the export sanctions on advanced technologies.
Lou cited the satellite navigation system as an example: “China hoped for technological cooperation through international collaboration but ended up achieving technological development through its own efforts after being stuck in a deadlock for various reasons.” Regarding the Western bloc’s technology control, he said, “Even if they try to block technology they already know, they cannot block it, at best it’s just a matter of time,” and emphasized legislative support for technological self-reliance.
Lou stated, “The US presidential election is an internal affair of the United States, and we have no position on it,” adding, “Whoever is elected, China hopes the US will work with China to develop Sino-US relations in a stable, healthy, and sustainable direction.” He further criticized actions such as the introduction of anti-China bills by US lawmakers, anti-china speaking and acting aimed at China, and frequent visits to Taiwan, stating, “Such behavior violently interferes in China’s domestic affairs and disrupts the normal exchanges and cooperation between the two countries.”
In response to criticisms that the revised Anti-Espionage Law in April last year has heightened concerns among foreign individuals and companies, Lou argued, “The Anti-Espionage Law clarifies the boundaries of illegal acts, increases the stability of investment and work and life of foreigners and foreign companies in China, and does not target normal activities.” Despite China repeatedly making such claims, foreign companies’ anxiety has only intensified. According to the State Administration of Foreign Exchange of China, the foreign direct investment (FDI) of foreign companies in China amounted to $33 billion, a decrease of 81.6% compared to 2022.
When asked about the significant agenda of increasing defense spending at both conferences, Lou replied, “Compared to military powers such as the United States, China’s defense spending is relatively low in terms of its share of GDP, national fiscal expenditure, and per capita defense spending or per capita military personnel.” He added, “China will maintain the reasonable and steady growth of defense expenditure, promote the simultaneous increase of defense capabilities and economic strength,” indicating that the defense budget will also increase this year.
This year’s NPC will not host a press conference with the Premier after the closing ceremony, a tradition that has been present for over 30 years. Lou stated, “There will be no press conference with the Premier after the closing of this year’s NPC,” adding, “Unless there are special circumstances, there will be no Premier press conferences for the next few years after this NPC session.” The Premier’s press conference, first held by Premier Li Peng in 1991 and institutionalized during the tenure of Premier Zhu Rongji in 1993, is an opportunity to directly question China’s top leadership, drawing the world’s attention. However, the decision not to hold the press conference is interpreted as degrading the Premier’s status and strengthening power concentration towards President Xi Jinping.
On the afternoon of the day, both conferences commenced with the opening ceremony of the CPPCC at 3:00 pm (local time), and China’s economic growth target for this year will be unveiled through the government’s work report during the NPC opening ceremony on the 5th.
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