Xi's Letter to SL Parties - Food Security - 'Xi at Helm Made Historical Leap Possible' - 10 Clears: Reform & Governance - Preparing for CPTPP - Common Prosperity Action Plan - Liu Kun on Fiscal Policy
Here are the stories and pieces that I found noteworthy from the Friday, February 18, 2022, edition of the People’s Daily.
Page 1: Let’s begin with a couple of news stories before we get into the long pieces. First, Xi Jinping sent a congratulatory letter to the China-Sri Lanka political parties conference commemorating the 65th anniversary of China-Sri Lanka diplomatic relations and the 70th anniversary of the signing of the Rubber-Rice Pact. Xinhua reports:
“Xi said that since the establishment of diplomatic relations 65 years ago, the two countries have always maintained mutual respect and solidarity, and supported each other on issues concerning their respective core interests. ‘China-Sri Lanka relations are a good example of friendly coexistence and mutually beneficial cooperation between countries different in size,’ Xi said, lauding the mutual support shown between the two countries since the outbreak of COVID-19 pandemic. The CPC has maintained friendly exchanges and promoted practical cooperation with major political parties in Sri Lanka, playing an important role in the sound and stable development of bilateral relations and benefitting the two peoples, Xi stressed. The CPC is willing to work with various political parties in Sri Lanka, taking the 65th anniversary of the establishment of diplomatic ties as a new starting point, to carry forward the traditional friendship between the two countries, strengthen political guidance for bilateral relations, and make greater contributions to the steady progress of bilateral relations and regional peace, stability, development and prosperity.”
Next, Li Zhanshu made a public appearance, as he engaged in talks with Speaker of New Zealand Parliament Trevor Mallard. Xinhua reports:
“Li said that the two countries have respected each other and treated each other as equals, setting a good example of win-win cooperation between countries with different social systems, history, culture, development stages and economic sizes. China expects that the two sides would strengthen political mutual trust, increase high-level exchanges, uphold the common interests of the two countries and the well-being of the two peoples, and ensure that China-New Zealand relations continue to move forward in the right direction, he said.”
Also this: “Li said that the two countries should enhance coordination on multilateral affairs, strengthen communication within multilateral frameworks such as the United Nations and the World Trade Organization, and work together to address global challenges such as climate change, in order to contribute to regional prosperity and world peace and development. Li noted that the two legislatures have maintained friendly exchanges at multiple levels and in various areas for a long time. The NPC is willing to strengthen exchanges at all levels with the New Zealand Parliament, share legislation experiences in agriculture, green energy, digital economy and other fields, and supervise the implementation of various agreements, so as to create a favorable policy and legal environment for bilateral cooperation in various fields, serve their respective economic and social development, and promote the development of bilateral ties.”
Han Zheng also made an appearance yesterday. He presided over a meeting of the food safety commission of the State Council. Xinhua reports:
“A unified national food-safety information platform should be established, and the application of big data should be strengthened...Han stressed strengthening regulation on pesticides and veterinary drugs and purifying the environment of food-producing areas to prevent contaminated food from entering the market. Food safety standards should be upgraded, and international experience should be learned…”
In the PD report, Han talks about the “four stricts” with regard to food safety. These are:
Strict standards
Strict supervision
Strict penalties/sanctions
Strict accountability
These come from the 2019 guidelines on Deepening Reform and Strengthening Food Safety Work. Hu Chunhua and Wang Yong were at the meeting too, as per PD’s report.
Okay, let’s now look at the first feature piece on the page. This one is about Xi Jinping’s concern with regard to food security.
The first paragraph begins with Xi’s quotes that “ensuring the supply of primary products is a major strategic issue. The rice bowl of the Chinese people should be firmly in their own hands at all times. The rice bowl should mainly be filled with Chinese grain.” “We must not let others choke us when it comes to our basic survival.” “There can be no slack in food security.” – 习近平总书记念兹在兹：“保障好初级产品供给是一个重大战略性问题，中国人的饭碗任何时候都要牢牢端在自己手中，饭碗主要装中国粮.” “决不能在吃饭这一基本生存问题上让别人卡住我们的脖子.” “对粮食安全不能有丝毫松懈.”
Later the piece talks about how General Secretary Xi Jinping is thinking about danger and threats even in times of peace he has argued that food security plays a pivotal role in national security.” 习近平总书记于安思危，道出粮食安全之于国家安全举足轻重的分量. The piece says that one of the keys to ensuring stable output is having quality seeds.
The article carries this quote from Xi from his visit to the Nanfan Scientific and Research Breeding Base April 12, 2018. “We must be determined to develop China’s seed industry, pay close attention to cultivating excellent varieties with independent intellectual property rights, and ensure national food security from the source.” “要下决心把我国种业搞上去，抓紧培育具有自主知识产权的优良品种，从源头上保障国家粮食安全。”2018年4月12日，习近平总书记在国家南繁科研育种基地考察时指出. Xi had also called for the base to evolve into China’s “agricultural Silicon Valley” to serve the country’s needs.
The article then talks about the achievements with regard to seeds. “The self-sufficiency rate of rice and wheat, the two major ration crops, has reached 100%, and the contribution rate of improved varieties of seeds in agricultural production exceeds 45%.” 截至目前，我国主要农作物良种基本实现全覆盖，自主选育品种面积占95%以上，水稻、小麦两大口粮作物品种自给率达100%，良种在农业增产中的贡献率超过45%.
The next chunk talks about the use of technology. It says that as per data in 2021, “the comprehensive mechanization rate of crop cultivation and harvesting exceeded 72%...” 数据显示，2021年，农作物耕种收综合机械化率超过72%，三大主粮机收损失率平均降低1个百分点，确保粮食安全更有底气.
A couple of other key points highlighted are:
Maintaining a stable area for cultivation
Maintaining policy stability
Focussing on improving operational efficiency of agriculture
Finally, there’s a long article titled: A historical leap in the great era (forge ahead for a new journey and make contributions for a new era) 伟大时代的历史跨越（奋进新征程 建功新时代). The article runs on to Page 6, taking nearly all the space there. Throughout the piece, including the sub-header at the top, there are some 20 references to Xi Jinping. This is again a long campaign pitch, making the case for Xi Jinping’s continued leadership.
This is part of a new series of columns that is being initiated, with the theme forge ahead on a new journey and make contributions for a new era - 奋进新征程 建功新时代
It begins by saying that the Party is today moving towards the second century goal. “Since the 18th Party Congress, socialism with Chinese characteristics has entered a new era. The CPC Central Committee with Comrade Xi Jinping at the core, with great historical initiative, great political courage and strong responsibility, coordinated the domestic and international situations, promoted the historic achievements and changes in the cause of the Party and the country, and the great rejuvenation of the Chinese nation entered an irreversible historical process.” 党的十八大以来，中国特色社会主义进入新时代。以习近平同志为核心的党中央，以伟大的历史主动精神、巨大的政治勇气、强烈的责任担当，统筹国内国际两个大局，推动党和国家事业取得历史性成就、发生历史性变革，中华民族伟大复兴进入不可逆转的历史进程.
The piece basically talks about achievements since the 18th Party Congress, such as China’s economic growth, achievement of Xiaokang, BRI’s expansion, hosting of international events and the Expo, and how “China had maintained world-leading position in economic development and epidemic prevention and control, and pledged to move from carbon peak to carbon neutrality in the shortest time than any other country. The ‘Governance of China’ has demonstrated amazing capabilities and efficiency and set a new civilisational benchmark for human modernization.” 成功举办进博会等大型国际经贸盛会，与147个国家、32个国际组织签署共建“一带一路”合作文件，经济发展和疫情防控保持全球领先，承诺以全球最短时间实现从碳达峰到碳中和的跨越……“中国之治”展现出令世界惊叹的能力和效率，树立起人类现代化新的文明标杆.
There’s a long list of economic achievements that are fleshed out in the piece hereafter.
For instance, it says that China’s economic, scientific and technological strength and overall national strength have reached new heights. It later informs that the role of innovation as the ‘primary driver’ of China’s development is surging. In the Global Innovation Index, China rose from 35th in 2013 to 12th in 2021. In 2021, goods trade surpassed $5 trillion and $6 trillion at one go in 2021, and FDI was over one trillion yuan for the first time. Both foreign trade and foreign investment reached record highs. Grain output has been stable at 1.3 trillion Jin for many years, energy independence guarantee capacity has remained above 80%, and the financial system is running smoothly and risks are generally controllable. The piece also talks about China’s manufacturing capacity and industrial chain, along with the country’s COVID-19 containment effort.
The next chunk talks about the deepening of whole-process democracy.
It says that since the 18th Party Congress, “the institutionalisation, standardisation and proceduralization of China’s socialist democratic politics have been comprehensively promoted, the superiority of the socialist political system with Chinese characteristics has been better brought into play, and a stable and united political situation has been consolidated and developed.” 党的十八大以来，在以习近平同志为核心的党中央坚强领导下，我国社会主义民主政治制度化、规范化、程序化全面推进，中国特色社会主义政治制度优越性得到更好发挥，生动活泼、安定团结的政治局面得到巩固和发展.
Also: forging ahead on a new journey and make contributions for a new era, we are even more convinced that by actively developing whole-process democracy and ensuring that people are masters of the country, the Chinese Communists and Chinese people will certainly be able to give full play to the superiority of the socialist political system with Chinese characteristics and contribute wisdom and strength to the development and progress of human political civilization. 奋进新征程，建功新时代，我们更加坚信：积极发展全过程人民民主，保证人民当家作主，中国共产党人和中国人民就一定能发挥好中国特色社会主义政治制度优越性，为人类政治文明发展进步贡献智慧和力量.
The next bit talks about cultural confidence and core socialist values in this context. This is followed by a chunk on long-term social stability. It’s interesting that poverty alleviation, employment and livelihood issues like healthcare, insurance, social security etc., are included in this section. Tells us a bit about the prism through which these actions are seen. This is followed by chunks on ecology, pollution and carbon emissions.
All of this in the end leads to the following:
Since the 18th Party Congress, the Party and the country have made historic achievements and experienced historic changes; the most fundamental reason behind these is that General Secretary Xi Jinping, as the core of the Party Central Committee and the core of the whole Party, has been at the helm and steering the ship, and the scientific guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. 党的十八大以来，党和国家事业取得历史性成就、发生历史性变革，最根本的原因在于有习近平总书记作为党中央的核心、全党的核心掌舵领航，在于有习近平新时代中国特色社会主义思想科学指引.
The Resolution of the Central Committee of the Communist Party of China on the Great Achievements and Historical Experience of the Party's Centennial Struggle, adopted by the Sixth Plenary Session of the 19th CPC Central Committee, profoundly pointed out: “The Party has established Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole, and defined the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. This reflects the common will of the Party, the armed forces, and Chinese people of all ethnic groups, and is of decisive significance for advancing the cause of the Party and the country in the new era and for driving forward the historic process of national rejuvenation.” 党的十九届六中全会通过的《中共中央关于党的百年奋斗重大成就和历史经验的决议》深刻指出：“党确立习近平同志党中央的核心、全党的核心地位，确立习近平新时代中国特色社会主义思想的指导地位，反映了全党全军全国各族人民共同心愿，对新时代党和国家事业发展、对推进中华民族伟大复兴历史进程具有决定性意义.”
And then:
“The great achievements and profound changes since the 18th Party Congress have demonstrated the great vitality of socialism with Chinese characteristics, and provided a more perfect institutional guarantee, a more solid material foundation and a more active spiritual force for the great rejuvenation of the Chinese nation…On November 8, 2021, at the Sixth Plenary Session of the 19th CPC Central Committee, General Secretary Xi Jinping issued a call to the whole Party, armed forces and people of all ethnic groups: “Do not forget the glory of yesterday's suffering, be worthy of today’s mission and live up to tomorrow’s great dream.” The 20th Party Congress will be held this year. This is a major event in the political life of the Party and the country. At the end of 2021, General Secretary Xi Jinping issued important instructions, stressing that we should focus on studying and implementing the spirit of the Sixth Plenary Session of the 19th CPC Central Committee, promote the whole Party to thoroughly understand the Party’s innovative theory, carry forward the great spirit of Party building, strengthen the confidence and determination to traverse the Chinese path of modernization and realise the great rejuvenation of the Chinese nation, unite and lead the people of all ethnic groups in the country to forge ahead on a new journey and make contributions to a new era with confidence, and greet the 20th Party Congress with practical actions. Let us unite more closely around the CPC Central Committee with Comrade Xi Jinping as the core, fully implement Xi Jinping Thought on socialism with Chinese characteristics for a new era, deeply understand the decisive significance of the ‘two establishments’, strengthen the ‘four consciousnesses’, strengthen the ‘four self-confidences’ and achieve the ‘two safeguards’, learn from history, create the future, work hard and bravely, and realize the Chinese dream of the great rejuvenation of the Chinese nation…” 党的十八大以来的伟大成就、深刻变革，彰显了中国特色社会主义的强大生机活力，为实现中华民族伟大复兴提供了更为完善的制度保证、更为坚实的物质基础、更为主动的精神力量...2021年11月8日，在党的十九届六中全会上，习近平总书记向全党全军全国各族人民发出号召：“勿忘昨天的苦难辉煌，无愧今天的使命担当，不负明天的伟大梦想”。今年将召开党的二十大，这是党和国家政治生活中的一件大事。2021年底，习近平总书记作出重要指示强调，要聚焦学习贯彻党的十九届六中全会精神，推动全党学深悟透党的创新理论，弘扬伟大建党精神，坚定走好中国道路、实现中华民族伟大复兴的信心和决心，团结带领全国各族人民满怀信心奋进新征程、建功新时代，以实际行动迎接党的二十大胜利召开。让我们更加紧密地团结在以习近平同志为核心的党中央周围，全面贯彻习近平新时代中国特色社会主义思想，深入领会“两个确立”的决定性意义，增强“四个意识”、坚定“四个自信”、做到“两个维护”，以史为鉴、开创未来，埋头苦干、勇毅前行，为实现第二个百年奋斗目标、实现中华民族伟大复兴的中国梦而不懈奋斗。
Page 2: Let’s begin with the fifth in the 10 Clears series. The fifth clear as per the history resolution was:
“The overall objectives of comprehensively deepening reform are to develop and improve the system of socialism with Chinese characteristics and to modernize China’s system and capacity for governance.”
For anyone still arguing that Beijing doesn’t see the world from the lens of systems competition, which is also ideologically-based, this should be kept in mind:
The system of people’s congresses, the system of multi-party cooperation and political consultation under the leadership of the CPC, the system of regional ethnic autonomy, the system of self-governance at the grassroots level. grassroots mass autonomy system...in the exhibition hall, on display boards, every piece of exhibit, clearly outlines the ‘system code’ behind the miracle of China’s development and stability. "Institutional/System advantage is a country’s greatest advantage, institutional/system competition is the most fundamental competition between countries,” General Secretary Xi Jinping has profoundly highlighted. 人民代表大会制度、中国共产党领导的多党合作和政治协商制度、民族区域自治制度、基层群众自治制度……置身展馆，一块块展板、一件件展品，清晰勾勒出中国发展稳定奇迹背后的“制度密码”。“制度优势是一个国家的最大优势，制度竞争是国家间最根本的竞争。”习近平总书记深刻揭示.
After briefly talking about systems explorations under Mao and Deng, the piece goes back to Xi’s visit to Guangdong in December 2012. That was a recognition of the past, as much as pointing towards a new starting point, the article argues. The question was: “how to make good use of the power of reform and improve the system design” to address the challenges of the new situation.
The piece tells us that the Third Plenary Session of the 18th CPC Central Committee was “another epoch-making third plenary session” in the history of the Party. It is where the changes began, with the adoption of the Decision on Several Major Issues of Comprehensively Deepening Reform. 2013年11月，中国共产党历史上又一个划时代的三中全会——十八届三中全会召开，全会审议通过了《中共中央关于全面深化改革若干重大问题的决定}}. Around 336 reform measures were initiated covering all aspects, breaking down barriers of interests and promoting the maturity of institutions and mechanisms. 改革力度前所未有：336项改革涵盖方方面面，打破利益的藩篱，促进各项制度机制更加成熟定型. The session provided a top-level design for comprehensively deepening reform from the perspective of the overall development of the cause of the Party and the country, put forward the overall plan, road map and timetable for comprehensively deepening reform, and made strategic arrangements for further improving and developing various systems.党的十八届三中全会从党和国家事业发展全局的高度，对全面深化改革进行顶层设计，提出全面深化改革的总体方案、路线图、时间表，对进一步完善和发展各项制度作出战略安排.
A year later, at the fourth plenary session, steps were taken to ensure comprehensively governing the country according to law, the article says. This is followed by a brief mention of the fourth Plenary session of the 19th Central Committee identifying 13 areas where the Chinese system enjoys advantages. These 13 together constitute the institutional cornerstone of the ‘Governance of China’, the article says.
In the tide of comprehensive deepening reform, General Secretary Xi Jinping has led the whole Party to highlight the main line of system/institutional construction, which has not only dealt with the stubborn and chronic diseases accumulated over many years and constantly broken down the barriers of entrenched interests, but also reviewed and improved the achievements and experience of reform in a timely manner and adopted laws, regulations and other forms to solidify them, thereby promoting historic changes, systematic remodelling and overall reconstruction in many fields. 一路风雷激荡，一路凯歌嘹亮。在全面深化改革大潮中，习近平总书记带领全党突出制度建设这条主线，既向积存多年的顽瘴痼疾开刀，不断破除利益固化的藩篱，又对成熟的改革成果和改革经验及时进行总结提升，并用法律法规等形式固定下来，推动许多领域实现了历史性变革、系统性重塑、整体性重构.
The next bit in the piece says that over time as the system has become better, governance has been more effective and the cause of the Party and the country have gained greater vitality. Here, we get examples of the Beijing Olympics, COVID containment, sustained economic growth, etc. We get a quote from Xi:
“‘Only the wearer knows if a shoe fits. The Chinese people are in the best position to know whether the socialist system with Chinese characteristics is good and superior’. General Secretary Xi Jinping hit the nail on the head. The system of socialism with Chinese characteristics and the system of national governance have demonstrated strong vitality and great strength in the great practice of socialism with Chinese characteristics.” “鞋子合不合脚，只有穿的人才知道。中国特色社会主义制度好不好、优越不优越，中国人民最清楚，也最有发言权。”习近平总书记一语中的. 中国特色社会主义制度和国家治理体系，在中国特色社会主义伟大实践中展现出强大生命力和巨大优越性.
Towards the end the piece talks about how well the Chinese system is responding to:
Matters of economic growth and stability:
In just a few decades, China has completed the industrialization process that took developed countries hundreds of years to achieve, and become the world’s second largest economy. At the same time, China has maintained long-term social harmony and stability and its people live and work in peace and contentment, making China one of the most secure countries in the international community... In the history of human development, no other national system or governance system outside of China’s has created such a miracle in such a short period of time. This is the inevitable result of the long-term unremitting struggle of the party leading the people, and also the inevitable result of giving full play to the remarkable advantages of China's national system and governance system! 用几十年时间走完了发达国家几百年走过的工业化进程，跃升为世界第二大经济体。与此同时，长期保持社会和谐稳定、人民安居乐业，成为国际社会公认最有安全感的国家之一……在人类发展史上，中国之外没有任何一种国家制度和国家治理体系能在这样短的历史内创造出这样的奇迹。这是党带领人民长期不懈奋斗的必然结果，也是我国国家制度和治理体系显著优势充分发挥的必然结果！
Expected and unexpected risks and challenges:
In the face of the epidemic, China’s governance stands in sharp contrast to the ‘chaos in the West’, which fully demonstrates the governance efficiency of the socialist system with Chinese characteristics. From historic efforts to address absolute poverty, effective responses to major natural disasters, the prudent handling of emergencies, to actively responding to major changes unseen in a century... History has proved time and again that the ‘Governance of China’ under the leadership of the CPC is full of vitality in the face of major risks and challenges.” 疫情之下，“中国之治”与“西方之乱”形成鲜明对比，充分彰显中国特色社会主义制度的治理效能。从历史性地解决绝对贫困问题，到有效应对重大自然灾害，从稳妥处理突发风险事件，到积极应对世界百年未有之大变局……历史一次又一次证明，重大风险挑战面前，中国共产党领导的“中国之治”蕴含着无限生机活力.
Keeping people at the center
“Unleash and develop the productive forces to meet the people’s new expectations for a better life. Actively develop whole-process people’s democracy and ensure that the people run the country. Continuously improve and ensure people’s wellbeing and enhance their sense of gain, happiness and security...The socialist system with Chinese characteristics has won the recognition, support and support of the overwhelming majority of the people. In January 2022, the ‘Edelman Trust Barometer’ released by Edelman, a world-renowned public relations consulting firm, showed that in 2021, Chinese people’s trust in the government was as high as 91%, up 9 percentage points year-on-year, ranking first in the world.” 不断解放和发展社会生产力，满足人民过上美好生活的新期待；积极发展全过程人民民主，切实保障人民当家作主；不断改善和保障民生，增强人民的获得感、幸福感和安全感……中国特色社会主义制度获得了最广大人民群众的认可、拥护和支持。2022年1月，全球知名公关咨询公司爱德曼发布的“爱德曼信任度晴雨表”显示：2021年中国民众对政府信任度高达91%，同比上升9个百分点，蝉联全球第一.
This is followed by a couple of quotes from Xi Jinping, a promise of furthering systems/institutional reform, a call to stick to the Chinese path and system, and a warning that the “problem of unbalanced and inadequate development remains prominent, the task of reform in key areas and key links remains daunting, and the capacity for innovation still falls short of the requirements for high-quality development.”
Next, there’s a report on the Ministry of Commerce’s press briefing from yesterday. There were a bunch of interesting comments. Gao Feng said that:
China has signed 19 free trade agreements with 26 countries and regions, covering Asia, Oceania, Latin America, Europe and Africa. China’s trade with free trade partners accounts for about 35% of its total foreign trade. In 2021, China's total import and export volume with free trade partners whose agreements have taken effect totaled 10.8 trillion yuan, up 23.6% year on year, 2.2 percentage points higher than the overall growth rate of China's foreign trade and 2.4 percentage points higher than the growth rate of China's import and export with non-free trade partners in the same period.
China has conducted a full, comprehensive and in-depth study and evaluation on the contents of the CPTPP. It is willing to make efforts to fully meet the CPTPP’s rules and standards through reform, and make a high-level opening commitment on market access, so as to provide all members with market access opportunities with great commercial benefits. At present, China is in contact and consultation with all members in accordance with the relevant accession procedures of CPTPP.
China is in close communication and conducting technical consultations with relevant parties on joining DEPA.
China will continue to press ahead with negotiations on free trade agreements between China and the Gulf Cooperation Council, China and Israel, China and Norway, China and Ecuador, and China, Japan and South Korea, and sign free trade agreements with more willing trading partners to jointly promote regional economic integration and trade and investment liberalisation and facilitation.
Gao also talked about Indian tax authorities’ probe into Huawei. This is not covered in PD, which in itself is interesting. Why leave out this component from the briefing? Anyway Xinhua reported:
“China's commerce ministry on Thursday expressed serious concerns over India's crackdowns on Chinese companies and related apps, saying the behaviours have damaged legitimate rights and interests of Chinese companies. “We noticed that foreign investors, including Chinese companies, are increasingly worried about the investment environment in India,” said Gao Feng, spokesperson for the Ministry of Commerce (MOC), at a press conference when answering questions regarding the ban of Chinese apps by India. “We hope India will improve its business climate and treat all foreign investors, including Chinese companies, equally, transparently and without discrimination,” he said. Noting that China and India are important economic partners, Gao said he hoped that India would take concrete measures to maintain a good momentum for bilateral economic and trade cooperation.
Finally, an interesting report (English report) on the NDRC’s views on promoting common prosperity. I’ll first go through the English report:
Chang Tiewei, deputy director of the Department of Employment, Income Distribution and Consumption at the National Development and Reform Commission, said it is speeding up the formulation of an action plan to promote common prosperity. Chang told a news conference in Beijing that the plan will mainly focus on narrowing gaps between different regions, between urban and rural areas as well as the rich and the poor. The plan will help build a basic system for primary distribution, redistribution as well as tertiary distribution…Under the plan, the country will take further steps to meet the needs of rural areas, primary organizations, underdeveloped areas and disadvantaged groups. Chang said the government is also studying a new plan to expand the middle-income group amid the ongoing efforts to promote common prosperity, which is in line with the requirement of the 14th Five-Year Plan (2021-25).
Ha Zengyou, director of the Department of Employment, Income Distribution and Consumption at the NDRC, said localities should make a big push to implement primary and inclusive projects that facilitate people's well-being and guarantee their basic needs. More efforts should also be made to improve basic public services, especially in the fields of education, healthcare, elder care and housing.
Chen Zhong, deputy director of the Zhejiang Provincial Human Resources and Social Security Department, said that:
“the province will make every effort to seize the opportunity to attract more graduates…the province has fully lifted its household registration permit system, or hukou system, by granting new graduates the permits. However, the Hangzhou downtown area still has restrictions to apply for a hukou. In Zhejiang, college students will be able to borrow up to 500,000 yuan ($79,000) to start a business, and if the business fails, the government will help repay at least 80 percent of the loan.”
Also, under Zhejiang’s common prosperity guideline, “the province will strive to achieve common prosperity by 2035, with its per capita GDP and the income of urban and rural residents reaching the standard of developed countries…Xie Xiaobo, deputy director of the Zhejiang Provincial Development and Reform Commission, said building a pilot area for the reform of the income distribution system will be a key task for building the province into a demonstration zone for common prosperity. Xie said the province will release a new action plan to expand the middle-income group and increase the income of low-income people. By 2025, the households with annual disposable income between 100,000 yuan and 500,000 yuan will account for 80 percent of all households. And 45 percent of the households in the province will have an annual disposable income between 200,000 yuan and 600,000 yuan, according to the plan.
In PD, we have Meng Gang, director of Zhejiang Development and Reform Commission, saying that as of now, Zhejiang’s provincial departments have issued 64 special policy guidelines focusing on key areas, forming a policy toolbox of ‘generality + particularity’. “On the whole, Zhejiang has initially established the target system, work system, policy system and evaluation system for the construction of common prosperity demonstration zone."
In the PD piece, Xie Xiaobo also talks about key target groups: skilled workers, researchers, small and medium-sized business owners and individual industrial and commercial households, college graduates, high-quality farmers, employees in new employment forms, migrant workers in cities, low-income farmers and disadvantaged groups.
And there’s this useful reminder of what common prosperity is not:
“With regard to common prosperity, some people think that it is better to ‘lie flat’ and ‘wait for things to happen,’ while others think that the government will engage in ‘welfarism.’ In this regard, Ha Zengyou, from the NDRC, said: ‘Common prosperity depends on joint efforts. To achieve the goal of common prosperity, first of all, we need to make the cake bigger and better through the joint efforts of the people of the whole country. Only with everyone's participation and efforts can we truly ensure that everyone can enjoy it’.” 对于共同富裕，目前有人认为可以“躺平”“等靠要”了，也有人认为政府要搞“福利主义”了，对此哈增友表示：“共同富裕要靠共同奋斗。实现共同富裕目标，首先需要通过全国人民共同奋斗把蛋糕做大做好，只有人人参与、人人尽力，才能真正实现人人享有.
Page 3: Just one piece to note. This comment from MoFA on minorities in the US.
Dragon TV: It is reported that the US Department of Justice has recently launched a review of the China Initiative amid concerns that it may fuel anti-Asian rhetoric and acts. Separately, the ROK’s foreign ministry said that Chung Byung-Hwa, the country’s Consul General in New York, will meet with government officials of the New York City to request that the city government make proactive efforts to prevent the recurrence of anti-Asian hate crimes. Do you have any comment?
Wang Wenbin: Both the so-called China Initiative and the rampant anti-Asian acts and words in the US boil down to its systemic racial discrimination and reflect the entrenched social problem in the US. Statistics show that anti-Asian hate crimes rose 76 percent in 2020. A quarter of young Americans of Asian descent were targeted by racial discrimination and bullying over the last year. These numbers are shocking and present a cause for widespread concern in many Asian countries and the wider international community. The US should do some soul-searching, earnestly address systemic racial discrimination, and ensure and safeguard the legitimate rights and interests of ethnic minorities including people of Asian descent. This way, the people can stay away from violence and fear and enjoy equal rights that they deserve.
Page 6: There are two short reports on the pandemic situation in Hong Kong. One report is about a team of top epidemiologists from the mainland arriving in HK to inspect anti-pandemic arrangements and advise the government on tackling the spread of the virus. The second one is about Carrie Lam’s comments at an award ceremony. She talks about dealing with the pandemic with support from the mainland and praises the national security law.
Page 7: The lead piece is by Finance Minister Liu Kun. My colleague Swayamsiddha Samal has translated the piece. I’m picking up key points from her translation. Liu begins by saying:
“The Central Economic Work Conference held at the end of last year summarised the economic work in 2021 and deployed the economic work in 2022, proposing that “proactive fiscal policy should improve efficiency and pay more attention to precision and sustainability.” This has provided the fundamental direction and follow-up for the fiscal work in 2022.”
In the first section, he talks about the situation as of 2021.
“The national general public budget revenue in 2021 will be 20.25 trillion yuan, a 10.7 percent increase over the previous year; the national general public budget expenditure will be 24.63 trillion yuan, a 0.3 percent increase year on year. Expenditures in critical areas like guarantee basic livelihood, wages, and operation have effectively been guaranteed. Enhance cross-cycle adjustment to promote long-term and stable economic recovery. The effect of tax cuts and fee cuts is obvious, and the total amount of new tax cuts and fee cuts exceeded 1 trillion yuan for the entire year. People's livelihood guarantees are strong and effective if they abide by the government. The direct financial capital mechanism was expanded in scope and implemented on a regular basis, and the efficiency of the central government's 2.8 trillion yuan direct capital continued to improve. Debt risks were gradually eliminated, and fiscal sustainability was greatly improved.”
Liu then talks about the challenges related to the pandemic and major changes unseen in a century. He cautions on the triple pressures of demand contraction, supply shock, weakening expectations, and says that the fiscal revenue-to-expenditure gap remains prominent. He says that the “ongoing evolution of the epidemic situation heightens the uncertainty surrounding fiscal revenue growth. “Key expenses such as scientific and technological research, rural revitalization, ecological environmental protection, and people's basic livelihood must be strengthened in terms of financial expenditure, and additional expenditures are also required to do a good job of carbon peaking and carbon neutralisation and to promote coordinated regional development.”
Amid all of this, Liu says that it is important to keep the 国之大者 in mind and he emphasises the two establishments and 4-4-2. In the next section, he talks about improving efficiency and giving greater attention to precision and sustainability in terms of fiscal policy.
“Precision means focusing on the high-quality development of the manufacturing industry, the bailout of small and medium-sized enterprises, and technological innovation, as well as integrating new and stronger tax and fee reductions; further optimising the framework of fiscal expenditures, implementing tight-living/austerity requirements, bolstering people’s livelihood and financial support for key areas and localities, especially the grassroots. To improve sustainability, we must coordinate requirements and possible fiscal expenditure provisions, assert guaranteeing and enhancing people’s livelihood during the development process, and avoid being overly ambitious and increasing appetite; properly determine the deficit ratio, scientifically arrange the scale of debt, and effectively prevent and defuse risks. We must pay close attention to the following details.”
To boost the vitality of market participants, we will implement more aggressive tax and fee reductions. The economic "engine" can only have power if market entities are dynamic.
Retain the appropriate level of spending intensity while improving spending accuracy. The Central Economic Work Conference emphasised the importance of maintaining fiscal intensity and accelerating expenditure progress. To that end, the fiscal deficit should be kept to a manageable level, and fiscal spending should be increased. Maximise the expenditure structure, with a focus on scientific and technological research, ecological and environmental protection, people's livelihood, major regional strategies, modern agriculture, and major projects in the ‘14th Five-Year Plan.’
Appropriately arrange special bonds for local governments to ensure the development of key projects. In accordance with the requirement of the Central Economic Work Conference that cross-cyclical and counter-cyclical macro-control policies should be organically integrated, the size of local government special bonds will be determined in accordance with the principle of keeping the overall government leverage ratio basically stable. Optimise the use of bonds, focusing on supporting follow-up financing for ongoing projects. In accordance with the principle of funds following the project’, we will deepen and refine project reserves, reasonably speed up the use of the project, ensure that the amount of work done by bond funds is formed as soon as possible, and better play its role in driving investment.
Boost transfer payments from the central government to local governments, and ensure the ‘three guarantees’ at the grassroots level. The scale of central government transfer payments to local governments, particularly general transfer payments will be greatly increased, with a focus on difficult and underdeveloped areas…provincial finance should earnestly shoulder the main responsibility and tilt the financial resources to the grass-roots level. Grass-roots finance should strictly implement major national fiscal and taxation policies, strengthen financial management, and coordinate all kinds of expenditure arrangements. Accelerate the closing of the regional per capita expenditure gap, as well as encourage coordinated regional development and the equalisation of basic public services.
“Hard work, diligence and thrift are the fine traditions of our party. We should continue to reduce non-key and non-rigid expenditures, strictly control general expenditures, strengthen budget management of ‘three public funds’, and strive to reduce administrative operation costs.”
The final point is about strict financial discipline. “Effectively strengthen financial management, standardize revenue and expenditure behaviour, and do not illegally construct buildings, distribute subsidies, engage in performance projects and vanity/image-building projects, and resolutely crack down on all kinds of tax evasion.
In the final section, Liu makes a few commitments about the policy direction going ahead:
Enhance support for market participants
Allow finance to play its full role in stabilising investment and boosting consumption
Encourage technological innovation aggressively
Carry on working on improving people's well-being
Ensure that agriculture and rural areas receive priority development
Optimise fiscal and taxation policies in favour of ecological civilization
Consistently improve risk prevention and control: “Strive to restrict and resolve local government hidden debt risks, strengthen the long-term mechanism for preventing and resolving hidden debt risks, and do an excellent job of piloting low-risk regions free of hidden debts.”
Improve accounting quality: “Accelerate the revision of the Accounting Law and the Certified Public Accountants Law, and improve industry supervision and regulations.”
Accelerate the implementation of a modern fiscal and taxation system
You can read the full draft translation by Swayamsiddha below.
Other Stories:
On the international page, there’s a report compiling criticism of the Biden administration’s decision to use frozen Afghan assets to compensate victims of 9/11. There are comments from the Taliban, Hamid Karzai, Pakistani, Iranian, Russian, and Chinese officials and also some media coverage and details about a protest in Kabul. Also there’s a report of the Russian Defense Ministry saying that some units of the Southern and Western military districts have completed their exercises and started returning to base.