The 2nd Session of the 11th National People's Congress is the annual meeting of the highest legislative body of the People's Republic of China, which was held in March 2009 at the Great Hall of the People in Beijing. The event began on March 5 and lasted until March 13. The Congress was followed closely because of the possible impact any policy changes would have on the Chinese and world economy. Major issues discussed at the Congress include the global financial crisis, industrial revitalization, curbing unemployment, and social welfare.
Highlights of the Congress included Premier Wen Jiabao's expression of confidence in the growth of China's economy in 2009, conciliatory remarks towards Taiwan from Beijing, NPC Chairman Wu Bangguo's reiteration that China will not adopt Western-style democracy, and Wen's expressed doubts about U.S. treasury securities. The main issues raised by delegates included a strategy to adopt to face the current economic slowdown, the ways to continue to improve population's life standards (jobs, health), and continue efforts against corruption.
Background
The 2009 NPC takes place alongside the 2009 session of the Chinese People's Political Consultative Conference (CPPCC), a political advisory body with little practical power. In recent years, however, there has been a marked rise in the amount of debate within both bodies. This year's congress is especially important because it takes place in the backdrop of the ongoing global financial crisis, the first such crisis of this proportion China has faced since economic liberalization under Deng Xiaoping in 1978. A day prior to the Congress, the government announced a 14.9% increase in the Chinese defense budget, 3% less than the previous year. There was also speculation of the unveiling of another stimulus package, which affected trading on global stock markets on March 4. The event's timeline was shortened this year because of the ongoing global financial crisis.
Agenda
The agenda for this year's NPC consisted of: State council work report delivered by Premier Wen Jiabao Report on the Implementation of the 2008 Plan for National Economic and Social Development and the Report on the draft 2009 Plan for National Economic and Social Development; and voting on the 2009 plan Report on the Implementation of the Central and Local Budgets for 2008 and on the Draft Central and Local Budgets for 2009; and voting on the 2009 central budget Work report of the NPC Standing Committee delivered by chairman of NPC Standing Committee Wu Bangguo Work report of the Supreme People's Court delivered by President of the Supreme People's Court Wang Shengjun Work report of the Supreme People's Procuratorate delivered by Procurator-General Cao Jianming
Premier's Work Report
The Premier, Wen Jiabao, delivered the annual Government Work Report on March 5, 2009. This annual speech details the government's policy and legislative agenda for the past and coming year (roughly analogous to the State of the Union address and Throne Speeches in some other countries). While acknowledging the deepening financial crisis, Wen declared that China would aim for a GDP growth of 8% in the coming year. Wen revealed that the central government deficit hovers around 750 billion yuan ($US109.63 billion), 570 billion yuan more than last year. The total deficit will amount to 950 billion yuan ($US139 billion) as local governments plan to issue 200 billion yuan worth of government bonds. Although this is a relatively large deficit by Chinese standards, it only accounts for less than 3% of the GDP.
Wen pointed to improvements in cross-strait relations between mainland China and Taiwan, and declared that the two sides have entered a "peaceful period". He remarked that new agreements on economic cooperation will be signed in the coming year. To address reconstruction after the deadly Sichuan earthquake in May 2008, the central government will allocate 130 billion yuan to accelerate recovery in hard-hit areas in Sichuan province. In health care reform, Wen stressed that governments at all levels will allocate an additional 850 billion yuan in the next three years, including 331.8 billion yuan directly from the central government.