The National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) will meet in March. From these two meetings, investors will look for policy directions which could shape the economic landscape of 2022—a crucial year when the Chinese Communist Party will convene its 20th Congress.
Following last year’s introduction of the Common Prosperity goals and the subsequent economic slowdown in China, the March meetings will be closely watched for any hints of policy or regulatory changes that may encourage stronger growth. Additionally, with the global approach to COVID-19 becoming more relaxed, investors will be eager to see any softening in China’s zero-COVID stance, as well as further discussion on its green energy plans, in light of last year’s energy crisis.
“Stability” has been repeatedly highlighted by China’s leaders as a top priority for this year. This focus will lay the foundations for the discussions at the Two Sessions event, ensuring a continued commitment to the long-term goals, but executed with greater care and flexibility to avoid further disruption of China’s economic, financial, or social stability.