Letter From Shanghai No 983 - Legislative Power

“Hold High the Great Banner of Socialism with Chinese Characteristics and Strive in Unity to Build a Modern Socialist Country in All Respects” is the title of President Xi’s full report to the 20th National Congress of the CPC, on which President Xi gave a summary to the Congress on Sunday. Although the full report has not yet been officially released, it seems some drafts are making their way into the public domain. Although the report does sway from self-congratulatory to aspirational and is tinted with a certain defensiveness, it is best if we consider three things. Firstly, despite the inclination of the media, which tends to pull various quotes from Xi’s speech, the full report seems to be the continuation of established policies, in which there are no new initiatives, only changes in emphasis. Secondly, the report is both backward and forward-looking and meant to be read as a whole, and thirdly, despite the importance of the 20th National Congress of the CPC within the structure and management of the CPC, there is no direct route to enact its policies. Legislative power resides in the National People’s Congress, the most senior legislative body of the PRC, and its next meeting is scheduled for March 2023. On that basis, new legislation will emerge in the New Year but before the March meeting. Legislation, therefore, should be based on a harmonious overarching structure grounded largely on the policies within the Xi report. Considering the geopolitical outlook, strengthening national security and, by inference, technological security is a given. It is more difficult to say where Common Prosperity will sit in this matrix.

It seems today’s Chinese GDP data and the Balance of Trade data, which was expected on Friday, are delayed, and there is no official indication of when they will be released. However, the National Congress of the CPC will end on Saturday 22nd, so we may have to wait until Sunday 23rd or Monday 24th of October to receive the most recent numbers.

Have a good day,

John