China’s parliament, the National People’s Congress, will begin its annual session on Tuesday. While largely ceremonial, the occasion will be closely watched by investors for signals regarding the ruling Chinese Communist party’s plans. These plans aim to bolster the country’s uneven post-pandemic economic recovery amid increasing deflationary pressures, a property crisis, subdued markets and mounting local government debt.
The NPC has little autonomy and is often characterised as a “rubber stamp” body. It has never in its history rejected a bill or personnel decision proposed by the CCP. Beijing uses it to pass laws, announce personnel changes and endorse its policies. Held every year, the so-called “Two Sessions” meetings, which involve the NPC and the country’s top advisory body, the Chinese People’s Political Consultative Conference, will last for one to two weeks.
