Problems of the countryside to dominate China's congress

CHINA: China's parliament meets amid heightened tensions, writes Clifford Coonan , in Beijing

CHINA: China's parliament meets amid heightened tensions, writes Clifford Coonan, in Beijing

Security was tight as delegates gathered in Beijing yesterday for the National People's Congress, China's annual parliament, which is expected to approve a plan to build "a new socialist countryside".

Heightened tensions with Taiwan are also likely to figure prominently on the agenda.

The yawning gap between rich and poor has led to widening rural unrest in China and is seen as one of the most potent threats to economic wellbeing and political stability in the world's fastest-growing major economy.

READ MORE

The ruling Communist Party is anxious to improve the lot of poor farmers in the 2006-10 Five-Year Plan, due to get rubber-stamp approval at the meeting, which starts tomorrow and goes on for 10 days.

A largely ceremonial event to celebrate the triumph of socialism with Chinese characteristics, the congress takes place in the Great Hall of the People, a massive, red-flag-bedecked room with seating for 10,000 cadres.

There is much talk of Marxist-Leninist theory, and the event harks back to the Soviet era with its choreographed applause and unanimous approval for most of the bills on offer. But it is more than just a talking shop, as it provides a platform for debate and can provide insights into current Communist Party thinking on contemporary issues.

The red flag theme spills out on to Tiananmen Square, where thousands of officials keep traffic moving and 15,000 police patrol the precincts maintaining "social stability".

There were reports that the traditional roundup of disruptive elements was under way, and there were restrictions on non-residents entering the city.

Traditionally, the congress is an opportunity for people from all over China to come to the capital to present their petitions about issues they feel need addressing. However, many petitioners have been blocked from coming to town this year.

The rural-urban divide featured heavily on last year's agenda, but has gained momentum since with an increased number of riots over land grabs and local corruption.

The Communist Party leadership recently said the countryside was "still arduously crawling uphill", while the economic planning agency called the town-country income gap alarming.

About 800 million of China's 1.3 billion people live in the countryside. Rural residents earned an average of €325 per capita last year, which is less than a third of what people in cities earn.

There have been regular reports in state media about the plight of farmers. According to an internet survey by the People's Daily, narrowing the wealth gap and cracking down on corruption were two of the most important topics people wanted addressed at this parliamentary session.

President Hu Jintao has called for a focus on the countryside through an ambitious agenda to help improve farmers' lives and productivity.

The "new socialist countryside" programme promises to increase subsidies to agriculture, improve rural schools and healthcare and end decades of discrimination against rural migrant workers.

"Only when the problems relating to agriculture, rural areas and farmers have been solved properly, can China's economy develop in the correct direction," said a Communist Party document.

It will also be interesting to see how the congress responds to Taiwanese president Chen Shui-bian's scrapping of a council on unification with the mainland, which prompted outrage in China.

Last year the congress passed an anti-secession law, which it said gave it a legal basis to invade Taiwan if it declared independence. China views Taiwan as a renegade province since the end of China's civil war in 1949, when the defeated nationalists fled to the island as the communists swept to power.

Financial markets will be watching for measures to strengthen the capital markets in China and for any clues that the government might make more moves to revalue the yuan.

The congress may also be an opportunity for Mr Hu to appoint a replacement for the vice-premier, Huang Ju, who has been ill recently. Mr Huang, a close political ally of Mr Hu's predecessor, Jiang Zemin, is said to be suffering from pancreatic cancer.

Analysts are expecting a third successive double-digit increase in defence spending as the government tries to modernise the armed forces. There are efforts to reduce the head count in the 2.3-million-strong People's Liberation Army and focus on improving military hardware instead.

Environmental challenges facing China, as strong economic growth is matched by choking smog and polluted rivers, will also be on the agenda.