Xi Stops Playing Nice; China’s Financial Overhaul: NPC Update

Mar 8, 2023

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(Bloomberg) -- Chinese lawmakers on Friday unanimously voted to give Xi Jinping a third term as president, completing his quest for continued supreme power to lead the world’s No. 2 economy.

The National People’s Congress also installed former anti-graft chief Zhao Leji to chair the top legislative body’s standing committee. The NPC gave the vice presidency to Han Zheng, who replaces Wang Qishan.

More votes and appointment are expected this weekend, with former Shanghai party secretary Li Qiang, a close ally of Xi, set to be appointed as China’s premier Saturday. 

On Sunday, a new set of Xi’s top economic officials are expected to be confirmed, including the next central bank governor, the finance minister and new vice premiers.

What to Know:

  • Click to view full text of government reorganization plan in Chinese
  • Click here to read more on this year’s NPC, which ends on March 13
  • What to watch out for this year (video)
  • A QuickTake explainer on the NPC
  • Insights on incoming officials, NPC delegates

Key Upcoming Events:

Key NPC/CPPCC events that have been announced so far include:

  • March 11-12: Delegates will decide on the country’s next premier and ministers, including central bank governor. Li Qiang is expected to replace Li Keqiang as the new premier when the decision is announced on March 11. Vice premiers and state councilors will be appointed on March 12 along with ministers and the PBOC governor
  • March 13 — NPC closing session, during which delegates will vote on government work reports, and Xi will deliver a speech. New premier’s press conference likely to follow

Latest developments: (Time-stamps are local time in Beijing):

Only One Official Got a ‘No’ Vote at Xi’s Coronation (12:42 p.m.)

Li Hongzhong has built a reputation as the Chinese official most eager to heap praise on leader Xi Jinping. Now he has a new distinction: the only nominee to receive a “no” vote this year for a leadership role in the country’s legislature.

Li, who also sits on the 24-member Politburo, received one abstention and one vote against his bid to become one of 14 vice chairpersons on the Standing Committee of the National People’s Congress. The other 13 nominees for the position, as well as one for secretary-general of the legislature’s top body, got unanimous support from China’s 2,952 lawmakers.

Xi’s Casual Chats Show Closeness With New Leaders (11:45 a.m.)

Xi Jinping’s casual chats with his top lieutenants on China’s most high-profile political stage provided fresh evidence to theories of the strong chemistry among the country’s new leadership team. 

Xi was spotted speaking with presumptive premier Li Qiang for more than 10 minutes on the Great Hall of the People’s main rostrum as voting got underway to give him an precedent-breaking third term as president. The 69-year-old leader repeatedly nodded as Li, his one-time personal secretary, spoke during the National People’s Congress session. 

US-China Downward Spiral Raises Fears of Conflict (11:00 a.m.)

China and the US have locked themselves into a new cycle of recriminations, provoking fresh worries that the world’s two biggest economies are heading down a path that could one day lead to the once unthinkable: the possibility of open conflict.

The latest back-and-forth started Monday, when President Xi Jinping said in a speech that China was the victim of “comprehensive containment and suppression by western countries led by the US.” Two days later, US Director of National Intelligence Avril Haines called Xi’s remarks “the most public and direct criticism that we’ve seen from him to date” — and she responded in kind.

Xi’s Cements Effort to Consolidate Power (10:58 a.m)

Xi Jinping won the vote in the National People’s Congress 2,952-0, officially giving him five more years in power and demonstrating his unrivaled grip over the ruling Communist Party. He also won unanimously in 2018, the same year China abolished constitutional provisions that would’ve barred him from a third term.

The annual legislative gathering reappointed Xi as chairman of the Central Military Commission, a post that makes him chief of the world’s the biggest armed forces in terms of active personnel.

China NPC Approves Govt Reorganization Plan (9:12 a.m.)

China’s National People’s Congress approved a plan to reform the institutions of the State Council, the Xinhua News Agency reports.

New Premier in Spotlight (6:00 a.m. Thursday)

When Li Qiang, 63, finally ascends to the premier’s job Saturday, he’ll inherit a position greatly diminished in both political stature and direct authority. Perhaps no other office has lost as much under President Xi Jinping’s efforts to consolidate power than the premier, which officially leads China’s cabinet, the State Council.

The question is whether Li Qiang’s long history with Xi, including a stint in Zhejiang province as the future president’s top aide, will let him play a greater role and restore the country’s No. 2 office to something resembling its former prominence. 

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