The urgent need for technological progress was a dominant theme in the eight-day meeting of the National People’s Congress, which ended on Monday after parliament rubber-stamped a third term in power for Xi and raised the his loyal lieutenant, Li Qiang, in No. 2 papers.
“With the founding of the Chinese Communist Party … and after a century of struggle, our national disgrace has been erased, and the Chinese people have become the masters of their own destiny,” Xi told the 3,000 or so delegates to the Great Hall of the People in Beijing, a red flag behind him. He pointed to the period up to the early 20th century when China was carved up by colonial powers, a period Beijing calls the “century of humiliation” and promises never to be repeated.
“China’s great national revival is on an irreversible path,” Xi said.
Self-reliance has long been one of Beijing’s top priorities, but strained relations with Washington, highlighted by recent export controls aimed at cutting China’s access to technology which would help its military program, making it more urgent.
In his first speech since being confirmed for a third term on Friday, Xi pledged to “build the military into a great iron fortress that effectively protects national sovereignty, security and our development interests, ” added that “safety is the foundation of development, and stability is necessary for prosperity.”
Xi’s comments capped a meeting that put the Communist Party firmly in control of decisions related to science and technology and consolidated the government’s grip on innovation.
Throughout the NPC meeting, officials repeatedly emphasized self-reliance as the key to achieving China’s goals in every arena. The changes are a necessary response to the “intense state of international competition in science and technology as well as external control and repression,” the cabinet said.
For years, the government has pushed the country to become a global technology power by investing in manufacturing capacity in key industries such as semiconductors and artificial intelligence. But in key areas, such as ultrasmall chips, Chinese companies have not been able to match advances elsewhere. Many of the national champions of supercomputing, semiconductors and 5G have been blacklisted in Washington.
“There is a general feeling that they are lagging behind in the basic technologies that are needed to drive a modern economy,” said Trey McArver, co-founder of research consultancy Trivium China. “‘Why can’t we make three-nanometer chips?’ There are a lot of great technologies that they’re after, and they’re trying to figure that out. “
In rare statements directly criticizing Washington, Xi said at a March 6 meeting with a trade group that private businesses should “play a greater role in promoting confidence self-development and self-development in science and technology” to prevent “US containment and suppression.”
While attending a meeting with a delegation of the People’s Liberation Army two days ago, Xi stressed the importance of self-reliance and building a “renewable industrial supply chain” to “serve a strong that army and can win battles.”
This year’s NPC meeting comes amid a bleak economic outlook. A stifling three years under Xi’s covid restrictions have left China facing its lowest level of economic growth in decades, and the Communist Party projects that the country’s second-largest economy world will achieve a moderate growth of 5% in 2023.
The country is facing a real estate crisis, rising unemployment, an aging population and declining consumer confidence. Government crackdowns on the technology sector have rattled entrepreneurs and investors. Li, the newly appointed premier, used his first news conference to reassure the country’s businessmen. After acknowledging the “inappropriate discussions” about the role of private businesses last year, he promised that their “pioneering spirit” will always be appreciated – as long as they contribute to a new era of “high quality” growth.
The focus, Li said, should be better — not more — economic output, especially in high-tech innovation and the shift toward environmental sustainability. “Honestly speaking, most everyday people are not focused on the GDP growth rate on a daily basis,” he said.
As a former party boss in China’s innovation hotbeds of Jiangsu and Shanghai, Li has positioned himself as a friend of private and international businesses as well as an emerging technology enthusiast. On Monday, he reminded journalists that he was an early adopter of the internet, describing himself as a “veteran netizen.”
But Li, who has been a close associate of Xi for more than two decades, has also occasionally echoed the central leader’s view that businesses are supported by — and should contribute to — the country’s political goals.
The “unique advantages” of China’s political system mean that the difficulties facing the economy can be overcome if the Chinese people “dare to struggle” and “strive for self-improvement,” he said.
Under the changes announced last week, the Ministry of Science and Technology saw its powers reduced, while a new decision-making body, the Central Commission on Science and Technology, was established, which giving the party a more direct hand in technological innovation.
The government has also established a National Data Bureau, which will absorb some of the functions of the country’s top internet regulator, the Central Cyberspace Affairs Commission. The bureau will oversee the development of China’s data infrastructure and the construction of China’s “digital economy and digital society.”
Executives from China’s leading chip companies are among the new delegates at this year’s congress, including the chairman of Huahong Semiconductor, China’s second-largest chip foundry, and the leader of an artificial intelligence chip company. Cambricon Technologies. Chinese state media said their presence was a reflection of the industry’s “growing importance in China’s economy.”
Delegates called for a “chip law” to promote the development of semiconductors and advocated for more integrated-circuit colleges to be established to cultivate talent.
A recent commentary in the People’s Daily, the party’s mouthpiece, praised the changes: “China is committed to putting scientific and technological innovation at the core of the country’s overall development. It is committed to path of independent innovation with Chinese characteristics.”
Vic Chiang in Taipei contributed to this report.
