politics policy
1. Boosting the middle of the Middle Kingdom
On Tuesday, Xi Jinping gathered his favorite guys and gal for the monthly Politburo meeting.
Top of the agenda: Reviewing a set of “Guiding Opinions on Promoting High-Quality Development of the Central Region in the New Era.”
Some context: Like most geographic regions in China, what constitutes the “central region” is a matter of debate, but past policies have defined the region as including:
- Anhui
- Henan
- Hubei
- Hunan
- Jiangxi
- Shanxi
The Politburo’s goals for development of the central region include:
- Building better infrastructure, logistics, and distribution systems
- Developing city clusters
- Promoting rural revitalization and better integrating urban and rural economies
- Using innovation to drive development
And this caught our eye:
- The document calls for forming a “new system based on high-level opening of the inland.”
More context: There has long been a development gap between China’s coast and its inland provinces.
- That gap widened during reform and opening up in the 1990s, as foreign direct investment and export-oriented manufacturing drove explosive growth in coastal cities.
Get smart: Pushing “opening up” and further investment into China’s central provinces could address the inequality between regions and boost domestic consumption – two top priorities for the Party.
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Xinhua: 中共中央政治局召开会议 审议《关于新时代推动中部地区高质量发展的指导意见》 中共中央总书记习近平主持会议
2. Kneecapping Hong Kong democracy
On Tuesday, the NPCSC, China’s top legislative body, officially approved changes to Hong Kong’s electoral system (see March 23 Tip Sheet).
- Some context: The changes were put forward earlier this month at the Two Sessions.
As expected, this pretty much cuts the legs out from under Hong Kong’s opposition.
The details: The Legislative Council (LegCo) will be expanded from 70 to 90 seats, of which:
- The Election Committee (EC) will appoint 40 seats
- Industry groups will appoint 30 seats
- Just 20 seats will be determined via direct voting – down from 35 previously
Some quick math: This means that just over 20% of the LegCo will be appointed by direct voting – down from 50% before.
The EC will grow from 1,200 to 1,500 members, by adding a fifth “sector” of Beijing loyalists.
- LegCo candidates will be required to secure nominations from all of the EC’s five sectors, making it near impossible for opposition candidates to get nominated.
- The EC will be led by a chief convener who must also hold “state leadership office,” i.e. a mainland top job.
Finally, a new “vetting committee” will be set up to screen all candidates to both the LegCo and the EC.
Get smart: We’re not trying to bum anyone out, but it’s almost hard to imagine a more final nail in the coffin for Hong Kong democracy.
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SCMP: Hong Kong electoral revamp: December date for Legislative Council polls, key role for new chief convenor overseeing committee
SCMP: Hong Kong electoral changes: ‘small group of people’ to make up powerful vetting committee
People’s Daily: “修改完善香港选举制度是对香港民主制度的优化和发展”
People’s Daily: “修订香港基本法附件一附件二具有十分重要深远的意义”
3. Xi’s battles against baddies continue
Xi Jinping is not stopping in his fight to take on all “bad elements” of Chinese society.
- That was the message from China’s top law enforcement official, Guo Shengkun, on Monday.
Some context: Guo’s announcement followed a ceremony hosted by Xi Jinping to celebrate the end of a three-year campaign to take on organized crime (see yesterday’s Tip Sheet).
Guo said that the campaign will be extended indefinitely.
- To this end, the central government will set up a leading small group to spearhead the battle against organized crime.
He said that the weeding out of organized crime will focus specifically on ten sectors, including:
- Financial lending
- Transport and logistics
- Construction
- Natural resources
- Environmental protection
- Tourism
- Healthcare
He also noted that any involvement of officials in such crimes will be scrutinized extra carefully.
Guo also urged the public to come in with tips, via a recently established online portal.
- And promised that officials will be held accountable for life if they don’t take those tips seriously.
Get smart: Just as with his anti-corruption campaign, Xi doesn’t believe in stopping at campaign’s end when faced with issues that could threaten the Party’s grasp on power.
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Xinhua: 扫黑除恶从专项斗争转向常态化开展 未来怎么做？
People.cn: 如何常态化开展扫黑除恶斗争？这场大会指明方向
The Paper: 常态化开展扫黑除恶斗争，中央要成立全国领导小组及其办公室
4. NEA’s 2025 vision for renewables
At a presser on Tuesday, top officials from the National Energy Administration (NEA) straightened out some questions re: China’s plans for renewable energy development.
Some context: Last December, Xi Jinping pledged that by 2030 non-fossil fuels will account for approximately 25% of China’s total primary energy consumption – without explaining how.
- But at this year’s Two Sessions, policymakers seemed protective of coal-based energy sources in the name of maintaining energy security (see March 5 Tip Sheet).
- And the 14th Five-Year Plan didn’t offer a clear vision for renewables in China’s future energy mix (see March 9 Tip Sheet).
To help set the record straight, the energy regulators announced on Tuesday that:
- By 2025, installed power generation capacity from renewables will account for more than 50% of China’s total power generation capacity.
And said that renewable energy will cover most of China’s growth in energy demand:
- By 2025, renewable energy is expected to supply two thirds of new electricity demand nationwide – meeting more than 50% of new primary energy consumption.
Get smart: That’s not very ambitious.
- Between 2016 and 2019, more than half of China’s new power generation capacity already came from renewable sources.
Get smarter: While the NEA has finally revealed some specific goals for renewable energy development, the details of how they plan to meet those goals are still very much in the works.
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SCIO: 国新办举行中国可再生能源发展有关情况发布会
5. Carbon rulez
On Tuesday, the Ministry of Ecology and Environment (MEE) released a draft revision of the “Interim Regulations on the Management of Carbon Emissions Trading.”
We know what you’re thinking.
- Isn’t this doc just a set of more detailed implementation measures largely similar to the administrative measures for the national carbon emissions rights trading scheme that the MEE released in January (see January 6 TipSheet)?
Why, yes. It is indeed.
But not so fast: The new interim regs did include some new information.
- The regs spell out that no additional local markets for carbons emissions trading will be established – with all existing local markets being gradually incorporated into the national market.
- The proceeds from selling carbon emission quotas will be used to improve the national carbon emissions market, as well as for projects to reduce greenhouse gas emissions.
Get smart: After MEE minister Huang Runqiu announced that a national launch of online trading would happen by the end of June (see March 1 Tip Sheet), regulators are now rushing to sort out the legal framework.
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MEE: 关于公开征求《碳排放权交易管理暂行条例（草案修改稿）》意见的通知
Economic Observer: 《碳排放权交易管理暂行条例》再次征求意见：现存地方市场将逐步纳入全国市场、国家建立碳排放交易基金