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China's Parliament session from today

Pallavi Aiyar



Wen Jiabao

BEIJING: China's Parliament — the National People's Congress — will open its annual session on Monday with some 3,000 delegates from around the country gathering at the Great Hall of the People just off Tiananmen Square.

In focus at this year's session will be a landmark property rights bill. If passed, it will give equal protection to private and state-owned property.

Supporters of the law that has already been years in the drafting, say that it will help to curb arbitrary land grabs by corrupt officials but detractors have argued that it would only exacerbate the widening gap between the rich and poor by speeding up privatisation. The bill was shelved at last year's NPC meet in the midst of intense debate.

Other bills and issues that will be in the spotlight include a corporate income tax bill that would end preferential tax policies for foreign-funded firms, measures to tackle rural poverty, corruption and environmental degradation.

On Monday, Chinese Premier Wen Jiabao will give his annual address to Parliament in which he will discuss the country's economic performance over the last year and announce the Government's new growth targets for the coming year. He will also discuss the achievements of government policies on a wide range of issues aimed at achieving what has been dubbed "the new socialist countryside." These included measures intended to narrow the gulf between China's prosperous cities and a countryside that lags on most social and economic indicators. Rural incomes are currently about one-third of urban incomes and the gap continues to widen. In 2006 average rural incomes grew by a healthy 10 percent, but were outpaced by a 12 per cent increase in urban areas.

Mr. Wen will further announce China's defence budget for the upcoming year.

On Sunday, the NPC spokesman Jiang Enzhu said at a press conference that spending on defence would in fact rise by 17.8 per cent to 350 billion yuan ($45 billion). Much international attention has been focussed on China's military modernisation programme in recent months given the January unveiling of its Jian-10 multi-role indigenous fighter jets followed by its anti-satellite test.

Later in the day, China's Finance Minister Jin Renqing, will present the 2007 budget. In January, the National Development and Reform Commission, China's main planning agency, had said that the Government intended to reduce its already small budget deficit again this year. Mr Jia has already projected a budget deficit of 295 billion yuan ($37.8) in 2006, down 1.7per cent from 2005.

This NPC session will be the last before the 17th Communist Party Congress this autumn, when a leadership reshuffle is expected to be announced leading to a further cementing of President Hu Jintao's power base.

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