In China, an annual parliamentary meeting ended, after which many expected announcements of economic reforms. However, a completely new priority was marked out instead – the security that the army and technology are to guarantee. What does this change mean for the world?
On Tuesday in Beijing, the largest and most important annual political event in China ended – the so -called Two sessions. These are the parallel deliberations of the general Chinese assembly of folk representatives (OZPL), the facade of China's parliament with nearly 3,000. Deputies, and the China political consultation conference for the People's Government of the People's Consultation Conference (LPKKCH), in which over 2,000 sits. members.
During this event, no decisions are made, but only formal acceptance of decisions taken previously behind closed doors by the leadership of the Chinese Communist Party. However, their announcement is valuable tips on the direction that the Chinese authorities set for the next year.
China focuses on the army and technology
In connection with the deteriorating economic situation of China, it was expected that her revival would be in the center of attention during the congress. However, it was different. Although the Chinese prime minister announced the maintenance of economic growth of about 5 percent. GDP and “faster actions” in the field of reviving the economy, no major programs were announced to increase internal demand, which entrepreneurs expected the most. Instead, the most attention seems to be devoted to another issue – security.
Thus, China seems to be completely opening with the growth of their economy in the first place, and instead of solving economic problems, they set a completely new priority: state security. Why such a change? – Because how much can you say that we stimulate demand and not stimulate it? – replies an expert on the Chinese Center for Eastern Studies, dr MichaÅ‚ Bogusz. – The Chinese authorities for years announced stimulating internal demand and this has already bored people because nothing has changed – he adds.
As he notes, despite Beijing's repeated declarations, in fact “never even tried to stimulate internal demand in China.” – And now, under the rule of the 11th Jinping, the party is already quite openly focused on supply, i.e. increasing production, industrial facilities. Because the party believes that wars are winning industrial powers, not service management – he explains.
The communist party ruling China decided after many years to change rhetoric and quite openly set new priorities. “Modernization of the Chinese National Security System” was announced, which is to be based on two pillars: investing in modern technologies and arms. The amount of $ 172 billion is to be allocated to the first of them. The increase in expenditure on reinforcement, however, is to be maintained at 7.2 percent. Chinese GDP, i.e. absorb an additional 245 billion dollars.
– The authorities want to prepare a nation for greater sacrifices and difficult times that come for China in less and less friendly international environment. Hence the focus on safety, especially from returning Donald Trump to the White House – explains Dr. Bogusz.
– Emphasizing the importance of new technologies in China is due to the fact that for years the party has been pouring huge money into it and in China there is also a great pride with all new achievements in this field, such as Deepseek. Even with great waste, such great measures must bring results, so there are achievements and something “moves”, but could this really give China technological independence? I don't know that and nobody knows it today. For now, talking about it is mainly to increase social and market moods – he indicates.
– As for reinforcements, the party has explained for years that reinforcement expenses are growing in proportion to the growth of China's GDP. For several years, however, expenditure on the army has been growing faster, so this translation ceased to be real – notes the expert. – However, the growing operating costs of the army are responsible for the increase in reinforcements in China, because the amount of equipment is growing, especially in the fleet. The more the Chinese jacket develops, the more “burns” money for its own maintenance. For example, producing a ship is some 1/3 of costs that this ship will consume during 20 years of service. The rest is fuel, ammunition, maintenance, repairs. The jacket is extremely expensive – explains Dr. Bogusz.
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New China priority
In short, in China's economy Instead of facing real reforms, they decided to go to “easy” and mask problems, focusing on generating profits from mass exports, which will be flooded with foreign markets. At the same time, the actual priority has changed and the economy replaces the security, understood as internal stability, a strong army and technological self -sufficiency.
What does this mean for the world? – For now, Beijing has decided that he would wait and watch what Donald Trump is doing. China has time, in recent years they have also created new tools for possible trade confrontation with USAbut they are waiting to decide if they will have to use them – says Dr. MichaÅ‚ Bogusz. – For now, there is no new signal for the world from China. Donald Trump also seems to have left relations with China for later and focused on other areas – he assesses.
China is waiting, but changing the priorities of the second power of the world will certainly not have an impact on the rest of the world. China has literally rearranged her so far.
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Author/author: Maciej Michałek
Source: tvn24.pl
Source of the main photo: PAP/EPA -Jessica Lee
Topic: Chinese economy