National People's Congress + Beijing sanctions two US companies + Basic research

The annual "Two Sessions" begin in Beijing this weekend. Some 3,000 delegates will convene to begin the National People's Congress (NPC) in the Great Hall of the People and go on to rubber-stamp key personnel decisions made at the Communist Party Congress last fall. Li Qiang, a controversial figure given his strict pandemic-fighting measures as party secretary of Shanghai, will replace Li Keqiang as head of government. – and a slew of other confidants of Xi Jinping are set to take other important posts.

Eagerly awaited is a report from the Chinese government about how it plans to revive the economy, hard hit by the country’s months-long lockdowns. It is essentially a foregone conclusion that delegates will overwhelmingly back Xi and his policies.

Our experts give more details about what the world can expect from this NPC in the lead story of the new MERICS China Essentials. You can read the full issue on our website or read a summary below.

NPC convenes to make over China’s government for President Xi’s third term

“The NPC concludes the appointment of key Xi Jinping loyalists in the state apparatus, giving the third-term president the confidence the administration will support his program,” says MERICS Lead Analyst Nis Grünberg. “The administrative restructuring will further institutionalize CCP oversight over policymaking, with the areas financial policy and national security, in particular, being put on a shorter leash.” Read more.

Beijing sanctions two US companies, using new “Unreliable Entities List” for first time

In its intensifying conflict with the USA, China has blacklisted two US defense companies. Our economics expert Jacob Gunter says: “Beijing’s willingness to wield instruments of economic coercion is limited by its tech dependencies – hence Raytheon’s subsidiary being added to the Unreliable Entities List, but not Raytheon itself.” Read more.

Politburo signals support for basic research and international research collaboration

Basic research is becoming ever more important for China's innovation efforts – the party’s Politburo has considered the issue twice this year already. As our science expert Jeroen Groenewegen-Lau explains: “Even basic research has become increasingly political. Rather than green technology, the Ministry of Science and Technology touts artificial intelligence, quantum information and laser manufacturing as focus areas.” Read more.

China’s peace proposal – a communication strategy towards the Global South

China's initiative to end the escalation of the war in Ukraine was received with disappointment in Europe – and interpreted as bolstering Russia’s position. Our analyst Grzegorz Stec says: “In their criticism of China’s position paper, EU members need to consider that they are not the only – and probably not the main – audience.” He views the peace proposal as part of a wider communication strategy addressing the Global South. Read more.

Continue reading the full version on our website and subscribe to the MERICS China Essentials and other MERICS publications for free here.