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March 14, 2014

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More people tune in, turn on to NPC

SOPHY Nie, 30 years old and self employed, used to have zero interest in government policies and economic issues. But for the past two weeks, she has switched from music to news as she gets dressed and commutes to work.

She is listening closely to reports from lawmakers at the National People’s Congress, which concluded yesterday, and the earlier Chinese People’s Political Consultative Conference.

“I read lots of news articles before the conferences started and I’ve been following them every day, trying to find out exactly whether housing prices will go up or down,” she tells Shanghai Daily.

“I’ve wanted to buy a house since late last year and I’ve been waiting for the conferences to know whether it’s a good time,” she adds.

In the past, ordinary people like Nie considered the legislative meetings to be discussions of the big, pie-in-the-sky issues that only business people, senior civil servants and journalists would follow. Over the years, speakers droned on and many representatives appeared to doze off, mechanically lifting their hands to vote “aye.”

But the meetings have become more meaningful and the lawmakers and advisers more energetic in recent years. They have been more active in making proposals and bringing up social issues such as housing prices and social security benefits. They have also been interpreting and explaining policies to the media.

Wider use of social media has also helped people like Nie, previously unfamiliar with economic policies, to better understand their impact on her life.

Livelihood and well-being have become key words in recent years, covering topics such as food security, housing, schooling, medical care, employment, retirement, social security, and many other issues. Policy related to this issues, and proposals for change, have become instant hits and inspired wide discussions online.

“I don’t remember when, but suddenly, it seems that what we talk about online does matter to the representatives up there,” says Jason Zhu, who will graduate from Wuhan University in June. “The participants and the conferences feel closer when they talk about exactly the same things we discuss with our friends.”

Zhu is most concerned about finding a job. He plans to move to Shanghai after graduation, like many of his older schoolmates, and has been job hunting for three months. He has yet to receive an offer.

“Everyone has been telling me how difficult the employment situation is this year,” he says. “I don’t know anything about economics, but I do know that if the economy is better, it will create more jobs.”

Yesterday, he set the alarm to remind himself of the press conference by Premier Li Keqiang at the end of the meetings. He wanted to know what he said about employment.

“He did talk about it!” Zhu says. “That doesn’t necessarily mean it will get better instantly. But it does feel more comforting hearing him making it a priority. Among a millions things, he did stress the urban employment rate.”

When asked about his expectations for GDP growth, Li acknowledged “mounting challenges” and stressed the importance of proper growth to deliver enough urban jobs. He also said there must be room for six to seven million migrant workers to seek employment in cities.

“We are not preoccupied with GDP growth,” he said at the press conference. “The growth that we want is one that brings real benefits to the people, helps raise the quality and efficiency of economic development and contributes to energy conservation and environmental protection.”

Earlier, the government had announced the growth target unchanged at around 7.5 percent for 2014. It also said the aim was to keep inflation at around 3.5 percent, to create 10 million more urban jobs to ensure the registered urban unemployment rate does not rise above 4.6 percent.

The urgent discussions this year concern housing policies, Internet finance and private banks, as well as expectations for GDP and the general economic situation.

“I’ve been reading about the meetings every day, from the newspaper, TV and from WeChat,” says Zhang Gengfa, a 76-year-old former mechanic.

“It started three years ago, when I first realized that what they say up there in March every year has everything to do with every penny I have earned and will earn,” he notes. “This year, I paid even more attention because this is the first lawmaking session held by the new government. I want to know whether my money is in good hands.”

Zhang has taken notes since day one, argued with his old pals about whether they should keep money in stock market, “which has been like hell,” or leave aside some for long-term deposits. Zhang hopes the interest rate will rise dramatically as Internet finance and private banks supplement and inject competition to the country’s banking structure.

At the annual meetings, Premier Li indicated that Internet finance would be regulated, rather than banned as many had speculated earlier. He included “promoting healthy development of internet finance” in a government report at the NPC.

Shang Fulin, chairman of the China Banking Regulatory Commission, said 10 companies would be reviewed for eligibility to apply for investment in China’s first five privately owned banks.

“That has been my dinner table topic for the past three weeks, before it even started,” says the retired mechanic. “Some of my pals are more concerned with their pension, but I can smell which way the wind is blowing. I’ve been waiting for the meetings since last year.”

Nie, the self-employed 30-year-old, has waited for long, if not longer, since she had planned to buy an apartment last year. Her parents bought one in downtown Xuhui District for 6 million yuan, almost US$1 million. Nie wants to buy the identical one upstairs, but now it’s priced at 8.9 million yuan.

“I don’t want to spend an extra 3 million if the property industry is going to collapse very soon,” Nie says. “I’ve been reading, consulting with friends, and researching on my own. Many people expect the prices to drop very soon. I’m really concerned.”




 

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