The BGA China Team, led by Senior Adviser Haiying Yuan, wrote an update to clients on the convening of the annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Conference.

Context

  • China’s “two sessions” — the annual meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) — began in Beijing March 5 and March 4, respectively. The meetings will see new leaders appointed to important positions, such as the premier, vice premiers and heads of ministries and other government agencies responsible for economic policy.

Significance

  • The government’s agenda has shifted to managing a broader set of more complicated issues beyond economic growth since the onset of the COVID-19 pandemic and the beginning of President Xi Jinping’s third term as general secretary of the Communist Party last autumn. The government will continue to focus on key economic, social and national security challenges over the next year.
  • Financial, data and energy security will remain priorities during the two sessions, as China recently unveiled regulations clarifying the rules for local firms that list on overseas stock exchanges, and regulators have continued to update data security laws at the implementation level. The government will prioritize energy stability over the renewable transition due to factors like the Russia-Ukraine war and the domestic power shortages that occurred in 2022.

Implications

  • Businesses should not expect aggressive decoupling policies, but the two sessions will likely reaffirm many of Xi’s policies and priorities, such as economic stability and self-reliance. Sweeping actions against U.S. export controls are unlikely in the short term.
  • Several ministries that are inimical to foreign businesses will have new leaders. These include the National Development and Reform Commission, the People’s Bank of China and other financial market regulators for banking, securities and insurance.

BGA will continue to keep you updated on developments in China as they occur. If you have any comments or questions, please contact BGA Advisor Eric Wang at ewang@bowergroupasia.com.

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Advisor

Eric has over two decades’ experience in government affairs and public relations and currently serves as firm partner and managing director of Yuan Associates. He has worked with more than 80 clients in manufacturing, agriculture and food, consumer goods and service industries. Eric joined Yuan Associates in 2005 and become a partner and managing director in 2011. As managing director, he is responsible for comprehensive government affairs service for and management of clients. As a partner his responsibilities include overseeing the firm’s daily overall operations. Prior to joining Yuan Associates, Eric worked as an account manager for Euan Barty Associates ... Read More