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    Is China’s Era of High Growth Over?

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    Beijing unveiled an annual economic target in line with last year’s, as it looks to refocus on strategically important sectors.With troubles brewing at home, China has set the same growth target as last year, reflecting its continuing economic challenges.Lintao Zhang/Getty ImagesChina’s real growth agenda China announced an official growth target of about 5 percent on Tuesday that’s already looking hard to pull off. The world’s second-biggest economy is facing headwinds, from a consumer slowdown to weak investor confidence and a trade war with the West.But the growth target only tells part of the story of how Beijing is rethinking economic policy.Left out of the pronouncements: a stimulus package. Investors watch the annual gathering of the National People’s Congress, the country’s rubber-stamp parliament, and a parallel meeting of China’s top policy body, for clues on the government’s priorities. Spending is set to remain at roughly last year’s level, suggesting that there’s no big-bang boost on the horizon.That’s not great news for Western brands that have ridden a surge in Chinese consumer spending to big growth in recent years. Apple reportedly has seen its Chinese iPhones sales plummet this year.The growth target matches last year’s too, when the post-lockdown economy grew 5.2 percent. (Some analysts say the real growth rate is much lower.) Global investors need to accept that slow growth is the new norm, says Yu Jie, a senior fellow on China at Chatham House, a think tank. “Beijing wants to draw a line under the past economic model which focused on infrastructure and property,” she told DealBook.Beijing’s real focus is reshaping the economy. The government knows that it faces a raft of challenges, but China’s leader, Xi Jinping, is trying to move away from debt-fueled sectors like property and move toward strategically important industries. The terms it uses are “high-quality development” and “new productive forces,” which includes electric vehicles, climate tech, life sciences, and artificial intelligence. The latest measures to achieve that: Premier Li Qiang, China’s second-highest official, said on Tuesday that the government would increase spending for science and technology research by 10 percent.More state-led investment is the priority, rather than “other kinds of more politically painful reforms,” George Magnus, a research associate at Oxford University’s China Center and a former chief economist at UBS, told DealBook.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      China Sets Economic Growth Target of About 5%

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      Premier Li Qiang targets growth of about 5 percent this year but signals continued reluctance to use deficit spending for economic stimulus.China’s top leaders on Tuesday set an ambitious target for economic growth but they signaled only modest stimulus measures, not the aggressive support for China’s domestic economy that many analysts believe is necessary to halt a steep slide in the housing market and ease consumer malaise and investor wariness.Premier Li Qiang, the country’s No. 2 official after Xi Jinping, said in his report to the annual session of the legislature that the government would seek economic growth of “around 5 percent.” That is the same target that China’s leadership set for last year, when official statistics ended up showing that the country’s gross domestic product grew 5.2 percent.The country’s program for state spending showed little change. Mr. Li said that the central government’s deficit would be set at 3 percent of economic output, but that the government was ready to issue another $140 billion worth of bonds to pay for unspecified projects of national importance. The more the government borrows, the more it can spend on initiatives that could boost the economy.China had also set the deficit at 3 percent early last year, before raising it in October to 3.8 percent when the government approved $140 billion in additional bonds to pay for disaster relief and prevention measures after severe summer flooding.Conspicuously missing from the premier’s agenda for this year was a move to shore up the country’s social safety net or introduce other policies, like vouchers or coupons, that would directly address Chinese consumers’ very weak confidence and unwillingness to spend money.“There’s a lot of positive noises for the economy, but not a lot of concrete proposals for how to resolve the country’s growth difficulties,” said Neil Thomas, a fellow at the Center for China Analysis of the Asia Society.

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      China consumer confidence index
      Source: China National Bureau of StatisticsBy The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Your Monday Briefing: China’s Saudi-Iran Deal

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      Also, Xi Jinping loyalists stack China’s leadership and Australia revives an Aboriginal alcohol ban.An Iranian newspaper with a photo of the top diplomats from China, Iran and Saudi Arabia.Majid Asgaripour/West Asia News Agency, via ReutersChina brokers a Middle East dealSaudi Arabia and Iran announced that they had agreed to re-establish diplomatic ties on Friday after years of fighting proxy conflicts. The deal, facilitated by China, highlights Beijing’s growing importance in the Middle East — and, some say, the U.S.’s waning influence there.Saudi Arabia and Iran said that they would patch up a seven-year split by reactivating a lapsed security cooperation pact, and that each would reopen an embassy in the other country. But differences run deep, and it remained unclear how far the rapprochement would actually go.China’s involvement was a surprise and signaled Xi Jinping’s ambitions as a global statesman amid a shift in longstanding alliances and rivalries. “This is among the topsiest and turviest of developments anyone could have imagined,” wrote Peter Baker, our chief White House correspondent.Some Gulf Arab officials say that they can no longer rely on the U.S. to guarantee their security and that China is ready to offer weapons, technology and investment with no strings attached. And Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler, is trying to prove that the kingdom is not just an American “client state.”But other analysts cautioned that Prince Mohammed was simply taking a pragmatic approach. While the U.S. remains the kingdom’s dominant security partner, they say, Washington could not have brokered a deal, given its deeply strained relations with Iran.Iran’s gains: The deal could be a relief for the country, which is facing domestic unrest and an economy waylaid by harsh sanctions.Saudi Arabia’s gains: The pact could help quiet the regional tensions that have inflamed costly wars, like the one in Yemen, which have deterred potential investors.Israel’s fears: Its hopes for an anti-Iranian coalition with Saudi Arabia may be dashed.Saudi nuclear fears: Officials have repeatedly expressed fear over Iran’s nuclear program, saying that they would be the foremost target for any attack. In exchange for normalizing relations with Israel, the kingdom wants security assurances from the U.S. and help developing a civilian nuclear program.Xi Jinping solidified his status as China’s most powerful leader in decades.Noel Celis/Agence France-Presse — Getty ImagesChina’s new leadershipXi Jinping swept into an unprecedented third term as China’s president on Friday. The unanimous vote cemented his dominance, as Xi steels China for an era of superpower rivalry and seeks to revive a battered economy.The meeting of the National People’s Congress, which ends today, will also elevate new leaders for the first time in five years — many of them Xi’s loyalists. His new No. 2, Li Qiang, faces the challenge of reviving economic growth after three years of Covid-19 restrictions. Li oversaw the bruising lockdown in Shanghai last year and will probably extend a hand to a wary private sector.On Friday, the National People’s Congress also approved a series of regulatory changes that reflect Xi’s efforts to centralize Communist Party control.Some changes are aimed at stabilizing the financial sector and growing the power of the central bank amid a rolling real estate crisis. Others seek to boost tech and scientific innovation to compete with the West. And China will centralize how its data — which it views as the backbone of its economy in the future — is managed.“I’m a Vietnam veteran, and I couldn’t even buy a beer,” said Geoff Shaw, left.Tamati Smith for The New York TimesAn Aboriginal alcohol banAustralian authorities have reinstated a ban that prevented people living in most Aboriginal communities from buying takeaway alcohol. The move has reignited debates about race and control.The ban was in place from 2007 until last July, when the Northern Territory let it expire, calling it racist. But little had been done in the intervening years to address the communities’ severe underlying disadvantages. Once alcohol flowed again, there was an explosion of crime.Opponents believe that the ban, imposed by a largely white leadership, replicates the effects of colonialism and distracts from practical issues. Others argue that the benefits — like reducing domestic violence and other harms — could outweigh the discriminatory effects while long-term solutions are developed.Context: The debate has flared up again as Australia begins to discuss constitutionally enshrining an Indigenous body that would advise on policies.THE LATEST NEWSThe War in UkraineWestern analysts say that Russian forces now control most of Bakhmut. Ukraine insists that it holds the city, but its grip is tenuous.Pregnant Russians are heading to Argentina, which gives citizenship to anyone born there — and grants their parents a right to permanent residency and a fast track to a passport.Ukraine’s farmers face risks in the spring planting season: The fields are studded with unexploded bombs.Around the WorldSome human rights groups compared migrant workers’ conditions in Qatar to modern slavery.Olya Morvan for The New York TimesQatar pressed a U.N. agency not to investigate labor abuses in the run-up to the World Cup.The U.S. is racing to contain fallout from the collapse of Silicon Valley Bank, which is the largest U.S. bank to fail since the 2008 crisis.Turkey is trying to identify more than a thousand earthquake victims who remain unaccounted for.A South African corruption watchdog cleared President Cyril Ramaphosa in the theft of $580,000 stashed in his sofa.Other Big StoriesThe BBC is in turmoil after a sports host was taken off the air for criticizing a U.K. immigration proposal.Australia’s strict immigration policy, which includes a system of indefinite mandatory detention, is of questionable legality.At least eight people died when small boats capsized off California, in what authorities said was a human-smuggling operation gone awry.The Oscars are about to start. Follow our live coverage.A Morning ReadIn Luanda, Angola’s capital, dancers celebrated Carnival last month. Gulshan Khan for The New York TimesOnce a cultural highlight, the Carnival celebration in Angola’s capital seems to barely register these days. But a competition could restore its glory, as groups of young dancers compete for prize money.ARTS AND IDEASThe race to turn water into fuelTrucks transporting iron ore in Western Australia.Giacomo d’Orlando for The New York TimesHundreds of billions of dollars are being invested in a high-tech gamble to make hydrogen clean, cheap and widely available. Producers hope to find customers in Australia’s huge mining industry, which currently relies on fossil fuels.“Green hydrogen” is made by using renewable electricity to split water molecules. (Currently, most hydrogen is made by using natural gas.) Because burning hydrogen emits only water vapor, green hydrogen avoids carbon dioxide emissions from beginning to end.Green hydrogen’s biggest impact could be in steel production, which emits more carbon dioxide than all the world’s cars. Three of the world’s four biggest ore miners operate dozens of mines in Australia’s Outback, where 10 million new solar panels and as many as 1,743 wind turbines will go toward making green hydrogen. This month, a steel company there will open the world’s biggest electrolyzer factory, producing machines that split water molecules apart to isolate the hydrogen.Critics say green hydrogen projects divert investment from surer emissions-reduction technologies. But if the rosiest projections hold, green hydrogen in heavy industry could reduce global carbon emissions by at least 5 percent.PLAY, WATCH, EATWhat to CookChristopher Simpson for The New York TimesIn this vegetarian take on shawarma, the usual spiced lamb, chicken or turkey is replaced with cauliflower florets.What to WatchIn “Stonewalling,” a young Chinese woman struggles with pregnancy, informal work and the pandemic. (I saw it and highly recommend it!)What to Listen toCheck out new songs on our weekly playlist.Exercise“Gymtimidation” is real. Don’t let that stop you from working out.The News QuizHow well did you follow last week’s headlines?Now Time to PlayPlay the Mini Crossword, and here’s a clue: Public uprisings (five letters).Here are the Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. See you next time. — AmeliaP.S. “Sin Eater: The Crimes of Anthony Pellicano,” a Times documentary about a Hollywood fixer, premiered. Watch the trailer.Start your week with this narrated long read about Germany’s military. And here’s Friday’s edition of “The Daily,” on protests in Israel.We’d like your feedback! Please email thoughts and suggestions to briefing@nytimes.com. More

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      How China Plans to Control Hong Kong’s Elections

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      New rules give Chinese security bodies power to investigate all potential candidates, meaning that opposition politicians face steep odds of even being allowed to run.HONG KONG — China’s sweeping overhaul of Hong Kong’s election system will give national security bodies vast power over who can run for office, a move that could sideline the pro-democracy opposition for years to come.Hong Kong’s pro-democracy figures had long enjoyed a greater share of the vote in direct elections, but the system was stacked against them, ensuring the pro-Beijing camp controlled the legislature. On Tuesday, the standing committee of the Communist Party-controlled National People’s Congress in Beijing approved changes that would ensure an even stronger legislative majority for the establishment.The changes give Beijing and its handpicked local leaders vast powers to block any opposition candidate China deems disloyal, aiming to stamp out the intense antigovernment sentiment that fueled protests in 2019.Here is a look at the changes and what they mean for Hong Kong:The changes cut the proportion of directly elected seats in the Hong Kong Legislature, to less than 25 percent.Vincent Yu/Associated PressA devastating blow to Hong Kong’s democracyAmong the most significant of the changes is how the city’s lawmakers will be chosen. The move slashes the proportion of directly elected seats on the legislature, to less than a quarter from half. Forty seats on the 90-member body will be chosen by an election committee, a pro-establishment body that also selects Hong Kong’s leader.Beijing further consolidated its grip over the election committee by removing elected district council members, after pro-democracy politicians swept most of those positions in 2019. Those seats were to be replaced with appointed advisory bodies and groups representing people from Hong Kong in mainland China.Opposition groups said the changes would most likely leave them completely shut out of elections at all levels. “The feeling is surreal. It’s beyond anger,” said Avery Ng, the head of the League of Social Democrats, a leftist, pro-democracy party in Hong Kong. “With the newly established structure, the Beijing government can have a 100 percent guarantee on the result in Hong Kong.”Ventus Lau, center, an organizer of the antigovernment protests, was among the candidates barred from elections last year.Lam Yik Fei for The New York TimesNational security comes to the forePerhaps the most dramatic transformation will be the power that national security bodies beholden to Beijing will now have over the electoral process.Any potential candidate will first be investigated by the national security department of the Hong Kong police and the city’s national security committee, a body created by Beijing last year that includes the central government’s chief representative in Hong Kong. Their reports would be handed to a new vetting committee, whose decisions on qualifying candidates are final and cannot be appealed in court.“The amendments achieved what has been emphasized before: Patriots need to rule Hong Kong,” said Tam Yiu-chung, a pro-Beijing politician and Hong Kong’s sole delegate on the standing committee of the National People’s Congress.He said the changes would block those who “opposed China and wreaked havoc on Hong Kong” — Beijing’s depiction of many pro-democracy figures — from holding seats in the legislature and the election committee.The changes show that Beijing will decide how elections are held in Hong Kong, said Lau Siu-kai, a former senior Hong Kong government official who now advises Beijing policymakers on Hong Kong issues, including the electoral changes.A TVB news broadcast in a Hong Kong mall in 2019. TVB said this month that it would not air the Oscars for the first time in 52 years.Lam Yik Fei for The New York TimesIt adds to Hong Kong’s transformed political environmentThe electoral overhaul is only the latest example of how Beijing has squeezed a once raucous and freewheeling political landscape and crippled free speech in Hong Kong.The authorities have waged an intense crackdown on the opposition with arrests and detentions. Last month, they charged 47 pro-democracy politicians, including most of the camp’s most prominent figures, with subversion under a national security law. Others are in court on charges of unauthorized assembly. The prosecutions have effectively silenced much of the opposition.The security law has also loomed over the city, curbing its environment for free expression. Some politicians have warned that Hong Kong’s new art museum, M+, risks violating the security law if it displays works from artists like the Chinese dissident Ai Weiwei.A local broadcaster, TVB, said this week that it would not show the Oscars after 52 years of televising the event. It said the decision was commercial, but this year’s awards include two nominees that are politically sensitive in China. “Do Not Split,” a nominee for best documentary short, focuses on the 2019 Hong Kong protests, and Chloé Zhao, the first Chinese woman and the first woman of color to be nominated for best director, has stirred a backlash over a 2013 interview in which she criticized her native country.Barriers outside the Legislative Council building in Hong Kong this month.Lam Yik Fei for The New York TimesBeijing has been unswayed by the international backlash.Beijing’s moves on Hong Kong have prompted criticism and countermeasures from foreign governments, including the United States. Both the Trump and Biden administrations imposed financial sanctions on Chinese and Hong Kong officials deemed as having undermined the city’s autonomy.Several nations have also announced they would make it easier for people from Hong Kong to immigrate. Britain has opened up residency and a potential pathway to citizenship for millions of people from Hong Kong, a former British colony.As the political changes pushed by Beijing continue to shake Hong Kong, more people are likely to consider options for leaving, said Sonny Lo, a political analyst based in Hong Kong.“This will have a kind of chilling effect on society,” he said. “I expect a wave of migration. Because in the minds of ordinary citizens who don’t know about politics, who don’t know the complexities, they are really scared off.”Keith Bradsher More

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      How China Plans to Control Hong Kong’s Elections and Elevate ‘Patriots’

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      #masthead-section-label, #masthead-bar-one { display: none }China’s Crackdown on Hong KongThe Security Law, ExplainedChina Rewrites HistoryFleeing Activists ChargedU.S. SanctionsMass ArrestsAdvertisementContinue reading the main storySupported byContinue reading the main storyHow China Plans to Control Hong Kong’s Elections and Elevate ‘Patriots’New rules imposed by Beijing will make it nearly impossible for democracy advocates in the territory to run for chief executive or the legislature.The changes to Hong Kong’s election rules were approved on Thursday during the closing session of the National People’s Congress in Beijing.Credit…Pool photo by Roman PilipeyKeith Bradsher and March 11, 2021, 7:22 a.m. ETBEIJING — China approved on Thursday a drastic overhaul of election rules for Hong Kong that would most likely bar many pro-democracy politicians from competing in elections, cementing Beijing’s grip over the territory.The National People’s Congress, China’s Communist Party-controlled legislature, voted almost unanimously to give pro-Beijing loyalists more power to choose Hong Kong’s local leader, as well as members of its legislature. The decision builds on a sweeping national security law for Hong Kong, imposed last year after months of protests, that the authorities have used to quash opposition in the former British colony.Premier Li Keqiang said at his annual news conference that the new legislation was needed to ensure that “patriots” run the territory. But critics contend that the new election system will wipe out the already limited democracy that Hong Kong enjoyed after its return to Chinese sovereignty in 1997.Here is what we know about the changes.Carrie Lam, Hong Kong’s current leader, is eligible to run for re-election but has not yet said whether she will do so.Credit…Lam Yik Fei for The New York TimesBeijing will have even more say over who leads Hong Kong.Until now, Hong Kong’s chief executive has been selected by a 1,200-member Election Committee dominated by Beijing’s allies. This has allowed China to pick leaders it trusts.But a groundswell of support for the territory’s democracy movement during massive protests in 2019 raised the possibility that the opposition could amass a majority of votes to stymie Beijing’s choice.Beijing plans to add 300 more spots on the committee, which could allow more seats to go to its allies. The congress also imposed a new rule that would most likely prevent democrats from getting on the Election Committee’s ballot. To be nominated, a candidate will now require at least some support from each of the five main groups on the committee. Beijing will now have the chance to form one group entirely from its loyalists, which would block pro-democracy nominees.Such moves are likely to deprive democracy supporters of much say when the committee votes early next year to select Hong Kong’s leader. The current chief executive, Carrie Lam, is eligible to run for re-election but has not yet said whether she will do so.Pro-Beijing activists showed support for the electoral changes in Hong Kong on Thursday.   Credit…Lam Yik Fei for The New York TimesCandidates deemed ‘disloyal’ would be rooted out.Beijing will also empower the Election Committee to directly appoint some members of Hong Kong’s legislature. To many, this is a regression, as the committee lost the authority to appoint lawmakers several years after Hong Kong returned to Chinese sovereignty from British rule.“I think overall this is an effective, fast, hard-line kind of reverse democratization package,” said Sonny Lo, a political analyst based in Hong Kong. “The pro-democracy forces, even if they can win all the directly elected seats, they will be destined to be a permanent minority.”Half the seats in the legislature are currently chosen by direct elections and half by so-called functional constituencies: various professions, business groups and other special interests. Until recently, the democrats had held around two dozen seats, and often used their presence to protest China’s encroachment on the territory’s autonomy and filibuster some local government measures.Mrs. Lam, Hong Kong’s chief executive, said the changes would prevent dissenting politicians from disrupting the legislature, known as LegCo.“We will be able to resolve the problem of the LegCo making everything political in recent years and effectively deal with the reckless moves or internal rift that have torn Hong Kong apart,” she said.Beijing ordered an expansion of the legislature, to 90 seats from 70. It did not say how many of those seats would be directly appointed by the election committee.The congress also said the Hong Kong government would establish a separate committee to vet candidates seeking to run for the legislature or chief executive. This process is designed to weed out anyone who might be considered disloyal to Beijing.From left: The Democratic Party members Andrew Wan, Lam Cheuk-ting, Lo Kin-hei and Helena Wong at a news conference in January. All had been arrested on charges tied to the national security law.Credit…Jerome Favre/EPA, via ShutterstockIt’s ‘a sad move,’ democrats say.Even before the legislation takes force, the Beijing-backed government in Hong Kong has moved quickly to extinguish the opposition.Many activists have been detained or arrested on charges tied to the national security law, including Joshua Wong; Martin Lee, known as the “father of democracy” in Hong Kong; and Benny Tai, a law scholar. Their voice has been significantly dimmed.Pro-democracy activists warned that the election law changes would amount to a death knell for the territory’s limited voting rights.Lo Kin-hei, the chairman of the Democratic Party and one of the few prominent opposition figures not in custody, called the electoral changes “a sad move for Hong Kong.”“They should actually make the Legislative Council more responsive to the people’s voice, instead of suppressing the people’s voice, like what their proposal is now,” Mr. Lo said.“I believe that in the future those legislative councilors will be less and less representative of the Hong Kong people and they will just be some loyalists who can do nothing and who cannot represent the Hong Kong people at all,” he said.Last month, the authorities charged 47 people — many of them well-known democracy activists — with conspiracy to commit subversion.Their crime in the eyes of the police was their role in holding a primary election intended to help identify pro-democracy candidates for legislative elections that were originally scheduled for last September. The government postponed those elections for a year, citing the pandemic, and has hinted that a further postponement might be needed while the new election law is drafted and implemented.Keith Bradsher More