Each March, China’s National People’s Congress (NPC), the country’s top legislative body, holds its annual plenary session to determine the priorities for the current year and near horizon. At the same time, the Chinese People’s Political Consultative Conference (CPPCC), the top policy advisory body, convenes its annual plenary session. Collectively, these two conferences are known as “Two Sessions”.

The members of these two bodies have spent one week in the capital to get aligned on the important topics of new growth drivers, environmental protection, as well as low carbon economy transition. 

Quantitative growth criteria

The resolutions of both the NPC and CPPCC underpinned the goal of accelerating modernization through high-quality development and aligned with President Xi Jinping’s messages  to the delegates.  

In order to achieve this, quantitative criteria were set,  including 5% annual GDP growth and a 2.5% reduction in energy consumption. The 5% GDP growth rate for 2024 is much more moderate than that of previous years, especially compared to the period prior to the COVID-19 pandemic.

This reflects China’s gradual move away from the traditional development mode, which required higher resource consumption and had bigger environmental impacts. The NPC’s resolution considered the current global uncertainties to set a restrained GDP growth target. The target of energy efficiency improvement is a substantial step for China’s race to zero by 2060. Overall, this is aligned with China’s policy direction of a green, low carbon and circular transition.

New growth drivers

China has identified and underlined innovation as the ultimate vehicle to upgrade existing industries and commercialize emerging industries. In addition, digital transition will enjoy more policy support, with specific initiatives to be launched for the manufacturing sector.

The plan is for the implementation of high-quality development initiatives across the key manufacturing supply chains to enhance resilience and competitiveness. In that context, the industrial chains of electric vehicles and high-speed railway were frequently cited during the “Two Sessions” by the President and legislators. China’s objective is to build up world-leading brands via active involvement in standard-setting and solid efforts on product quality improvement.

China has hugely benefited from the investment and development of strategic emerging industries such as EV, justifying the even bolder plan for the commercialization of future-oriented cutting-edge technologies such as hydrogen energy, new materials, spacecraft and low-altitude aircraft. This forward-looking approach will be linked to the 15^th Five-year Plan from 2026 to 2030.

In addition, “New Urbanization” is identified as a growth driver. This includes a post-urbanization upgrade of the infrastructure system, such as the reconstruction of aged infrastructure, the construction of an underground piping and cable systems, and the installation of elevators to residential buildings.

Environmental protection and low carbon economy

An integral part of this high-quality development is environmental quality, which is bound to be popular as it will lead to improvement of the standard of living for citizens.

In NPC’s resolution, environmental protection is again identified as an area for future improvements. China is planning a holistic approach to improve the ecological environment, consisting of a continued action plan for air quality improvement, coordinated protection of water resources and water environmental quality, source control of soil pollution and strengthened management of solid waste and new pollutants (e.g. endocrine disruptors, priority control chemicals). Furthermore, major projects will be implemented to protect biodiversity and the experience will be extended to “One Belt, One Road” countries.

On another front, China will vigorously promote the green and low carbon economy.

The green transition will first take place through the optimization of industrial structure, energy mix, transportation, and rural-urban development. An integrated conservation strategy will be adopted to accelerate energy and water savings in key sectors. Green financing and circular economy policies will be adopted to establish green and low carbon supply chains. To fulfill its carbon peaking and carbon neutrality targets, China will enhance the capability for carbon calculation and verification, establish a carbon footprint management system and expand the scope of the national Emissions Trading Scheme.

Challenges and opportunities for the nickel value chains

Though NPC’s resolution emphasizes the “Domestic Circulation” of the Chinese economy, the attraction of foreign direct investment and the pursuit of  accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership are also listed as government priorities in the very same document. No single economy can be self-sufficient, just as no value chains are confined to territory borderlines. Naturally, the challenges and opportunities identified by the “Two Sessions” are relevant for the global nickel value chains.

As China transitions to green, low carbon, circular development, there are opportunities for nickel in the existing applications of battery, industrial engineering, ABC (architecture, building and construction), food processing, water distribution, as well as the full range of renewable and  hydrogen energy applications.

But there are also challenges around the scarcity of strategic mineral resources, product carbon footprint, chemical hazards and ESG impact. The Nickel Institute has expertise in many of these areas and over the years has made a huge contribution to sound scientific and technical knowledge about nickel and nickel compounds. This in turn supports regulators and industry to ensure that practices are protective of human health and the environment, and that nickel can be mined, produced, used and recycled in a sustainable manner, in China and beyond.