China takes stock as parliament meets

CHINA: Delegates from all around China gather in Beijing this week for the National People's Congress, the country's annual …

CHINA:Delegates from all around China gather in Beijing this week for the National People's Congress, the country's annual parliament, which this year is expected to focus on restructuring ministries and bedding down President Hu Jintao's influence in the upper echelons of the Communist Party.

The delegates traditionally give rubber-stamp approval to new legislation and personnel changes already decided on by top cadres, but in recent years it has prompted lively debate and gives a valuable insight into the decision-making process in China.

The two-week meeting will seek to sign-off on legislation aimed at keeping economic growth in check, as well as doing something about the environment and the wealth gap between the rich of the cities on the coast and the poor in the rural heartlands.

The Olympics, which start on August 8th and have galvanised the entire country, will be much discussed, as will the impact of the recent blizzards which brought many parts of China to a standstill. The trend of double-digit percentage growth in the defence budget is set to continue.

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It's also a useful time to stock of President Hu and Premier Wen Jiabao's rule as it marks the halfway point of their rule.

The congress is known in China as the liang hui, or two meetings, because it is made of the congress itself and a gathering of a top-level consultative body, the Chinese People's Political Consultative Conference.

One of the main personnel decisions expected at the meeting will be the formal appointment of Xi Jinping (54) as vice-president. He is widely tipped as a successor to Mr Hu and, reflecting his boosted role, he has been given a number of high-profile briefs in recent months, including taking charge of the Olympics in August, which looks like being a major challenge as rights groups examine China's domestic human rights situation, its Tibet policy and its relationship with governments in Sudan and Myanmar.

Another of Mr Hu's allies, Li Keqiang (52), is expected to be named vice-premier, which will put him in the frame to replace Mr Wen.

As part of Mr Hu's policy of expanding intra-party democracy, non-communists could be appointed to key positions, the government has said.

"Many non-communist personages have taken up posts at government departments and judicial bodies since China started its reform and opening up [ in the late 1970s]," Wu Jianmin, spokesman for the consultative conference, told the Xinhua news agency.

One of the main housekeeping jobs the government will attend to will be the creation of "super-ministries", which will further cement Mr Hu's grip on power.

The economy will be high on the agenda. Chinese gross domestic product continues to grow strongly but inflation is at record levels and the stock market is down nearly 30 per cent since October last year, after a period of record growth.

The National People's Congress hopes to streamline ministries, with the environment watchdog becoming a formal ministry.

Wang Qishan, who won plaudits for his handling of Sars as Beijing mayor, is in line to become China's trade negotiator and will also head up a "super-ministry" merging the banking, securities and insurance regulatory bodies. And a woman, Liu Yandong, looks set to be made vice-premier.