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Local Two Sessions, Local Issues
Provincial-level regions restart after a fruitful 2018
By Yuan Yuan  ·  2019-01-28  ·   Source: NO. 5 JANUARY 31, 2019
Taxation officers in Wuyi County, north China's Hebei Province, introduce their new services to taxpayers on December 20, 2018 (XINHUA)

East China's Jiangsu Province reported on January 14 that its GDP reached more than 9.2 trillion yuan ($1.36 trillion) in 2018, becoming the first Chinese mainland province to officially announce that its economic aggregate has topped the 9-trillion-yuan hallmark. Jiangsu's economy has surpassed that of Australia, the 13th largest in the world.

Governor Wu Zhenglong unveiled the figure at the annual session of the Jiangsu Provincial People's Congress, the provincial legislature.

In addition to Jiangsu, governments of other provincial-level regions on the Chinese mainland all released their work reports at local legislative sessions in January, where people's congress deputies gathered to discuss local issues and made decisions regarding economic and social development in 2019. In the meantime, members of provincial-level committees of the Chinese People's Political Consultative Conference (CPPCC), the political advisory bodies, also held their annual sessions.

Normally, the local Two Sessions are held before the Chinese Lunar New Year that usually falls in January or early February, over a month before the annual full sessions of the National People's Congress and the CPPCC National Committee, collectively known as the national Two Sessions, in early March.

A 5G technology exhibition is held in Hangzhou, capital city of east China's Zhejiang Province, on January 19 (XINHUA)

2018 achievements

Despite its strong growth, Jiangsu is unlikely to stay the richest province in China as Guangdong Province in the south, which had not opened the annual session of its provincial people's congress before Beijing Review's press time, is expected to be more economically powerful. In 2017, Guangdong's GDP totaled 8.99 trillion yuan ($1.32 trillion), ranking first among the 31 Chinese mainland provincial-level regions for 29 consecutive years.

Economic growth in many other regions in 2018 was also impressive. Sichuan Province in southwest China is a newcomer to the club of provincial-level regions with an annual GDP above 4 trillion yuan ($588.2 billion) as Governor Yin Li revealed that its GDP amounted to more than 4.06 trillion yuan in the annual government work report.

Tibet Autonomous Region's GDP reached 140 billion yuan ($20.5 billion) in 2018, a year-on-year increase of 10 percent.

Beijing, with a 2018 GDP of 3.03 trillion yuan ($445.9 billion), became the second municipality to join the club of provincial-level regions with an annual GDP above 3 trillion yuan ($442 billion) after Shanghai hit the mark in 2017. Shanghai again topped Beijing in 2018 with a 3.2-trillion-yuan ($470 billion) GDP.

Unlike previous years, local governments are focusing more on the quality rather than the speed of economic growth in 2019.

In his government work report, Mayor Chen Jining set Beijing's GDP growth forecast at 6-6.5 percent for 2019, slightly lower than the 2018 outlook of 6.5 percent. "Beijing is in a critical period of urban renewal and high-quality development," Chen said.

Likewise, Henan Province in central China lowered its projected GDP growth rate from 7.5 percent for 2018 to 7-7.5 percent for 2019. Tianjin, Xinjiang Uygur Autonomous Region and Heilongjiang and Jiangsu provinces all adjusted down their GDP forecasts for 2019 with Xinjiang reducing it the most, from 7 percent for 2018 to 5.5 percent.

"It is rational for local governments to lower their expected GDP growth rates for 2019 amid the current global economic situation," said Xu Hongcai, Deputy Chief Economist of the China Center for International Economic Exchanges. "We should shift the focus from purely eyeing development speed to quality improvement."

Hot topics

GDP development was just one of the subjects raised at local Two Sessions. People's congress deputies and CPPCC committee members from various walks of life submitted proposals and suggestions covering almost every issue in Chinese society. Among them, the topics that were discussed most this year included the commercialization of 5G wireless technology, the improvement of the business environment and infrastructure construction.

Beijing, along with Fujian, Hubei, Jiangsu and Henan provinces, all included the construction of 5G networks in their government work reports. Sichuan, the first province to pilot the opening of a 5G demonstration block in its capital Chengdu at the end of November 2018, also became the first to live broadcast its Two Sessions on the 5G network. The buses running in Chengdu's Second Ring Road were all equipped with 5G wireless routers, so passengers were able to watch the proceedings.

Henan published an action plan on developing 5G-related industries and released a series of policies to support its cities in allocating specific funds.

The development of hi-tech sectors, including artificial intelligence (AI), was also a hot topic for discussion by local lawmakers and political advisors across the country.

In Beijing, the number of national-level hi-tech enterprises climbed to 25,000 in 2018, up 25 percent from 2017, according to its government work report. On average, 199 innovative startups opened in the city every day. In terms of creating a friendly business environment, Chen said the capital will continue to cut taxes for small and micro enterprises as well as startups. In addition, the city will continue to expand the recruitment of outstanding scientists, encourage universities to speed up the establishment of innovation centers and support young and innovative entrepreneurs.

Zhao Yong, a deputy to the Beijing Municipal People's Congress and CEO of Deep Glint, a startup providing 3D image analysis, said the municipal government has done a lot so far to offer various services for startup companies.

"Our employees can now apply for public rental housing, which was impossible before," he said. "This has relieved a lot of our pressure."

International financial institutions such as banks, insurers, securities and fund firms, as well as professional service organizations in the fields of accounting, audits, assessments and credit, are welcome to set up regional headquarters or affiliated agencies in Beijing, Chen said.

Tianjin announced that it would seek to relieve the financing difficulties many companies are facing and make stronger efforts to create a fair market environment.

In provinces like Fujian in the southeast and Anhui in the east, high-speed railways are a priority in infrastructure construction. Beijing will open a new subway line connecting downtown with the new airport and two subway extensions will be put into operation in 2019.

In addition, Xinjiang plans to build 210,700 houses for low-income families in 2019. Tibet plans to allocate more funds to improve basic infrastructure and people's livelihood in border areas, in an effort to bring more prosperity to local residents.

At this year's session of the Tibet Regional People's Congress, Hu Hong, Vice Mayor of Gyirong County on the border with Nepal, said, "The regional government has placed great importance on improving infrastructure in border villages in areas such as transportation and telecommunications. Ensuring people live well-off lives is also a part of overall efforts to reinforce poverty alleviation and border security."

Copyedited by Rebeca Toledo

Comments to yuanyuan@bjreview.com

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