China had a big impact domestically and internationally this year. As it takes up the responsibilities of a major country, China and its citizens are working toward rejuvenating the nation by ushering in changes to all spheres of life, from politics to trade. Meanwhile, the leadership is ensuring social stability by improving domestic institutions, while leaving a global footprint through its diplomatic efforts. At a time of international volatility, China is providing a foundation for global peace and prosperity.
1. Xi’s thought enshrined in China’s Constitution
China’s National People’s Congress (NPC) in March adopted an amendment to the country’s Constitution, the first in 14 years. One major highlight of the 2018 amendment was adding Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era into the Constitution.
The amendment juxtaposed Xi’s thought with Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, the Theory of Three Represents, and the Scientific Outlook on Development as the guiding ideology for the Communist Party of China (CPC).
2. China elects new state leadership; President Xi Jinping takes public oath for the first time
During the first session of the 13th National People’s Congress in March, elections were held for the state leadership and the leadership of China’s top political advisory body, the Chinese People’s Political Consultative Conference.
Xi Jinping was re-elected president and chairman of the Central Military Commission on March 17. On the same day, President Xi took a public oath of allegiance to the Constitution in the Great Hall of the People in Beijing. This was the first time that China’s president has taken such an oath upon assuming office.
3. China celebrates 40 years of reform and opening-up
This year marks the 40th anniversary of China’s reform and opening-up, which saw the country’s transformation from a largely agricultural nation into the world’s second-largest economy. A celebration of the anniversary was held in Beijing in December, at which President Xi stressed that reform and opening-up is instrumental to China achieving its two centennial goals: to build a moderately prosperous society in all respects by 2021, and to build a modern socialist country that is prosperous, strong, democratic, culturally advanced and harmonious by 2049. At the anniversary event, 100 Chinese nationals were awarded medals in recognition of their role as pioneers of reform, and 10 foreign nationals were honored with medals in recognition of their outstanding contribution to China’s reform and opening-up.
4. Reform deepens of Party and state institutions
Following the third plenary session of the 19th CPC Central Committee, a decision on deepening reform of Party and state institutions was made public. The reforms aim to modernize China’s governance system and strategic capabilities. Two days after the announcement was made, a new anti-corruption agency – the National Supervisory Commission – was officially inaugurated. Within two months, the restructuring of 25 ministries and commissions was completed.
5. China vows to give more support to private enterprises
President Xi presided over a symposium on private enterprises in November, where he underlined the private sector’s significant contribution to China’s economic development. He pushed for the implementation of new policies and measures that would create a better environment for the development of private enterprises. Following the president’s call to action, the government rolled out a series of favorable policies toward private enterprises.
6. China’s diplomatic achievements
China remained a staunch supporter of globalization and multilateralism in 2018. The country hosted four high-level diplomatic events: The Boao Forum for Asia annual conference in April, the Shanghai Cooperation Organization summit in Qingdao in June, the 2018 summit of the Forum on China-Africa Cooperation (FOCAC) in Beijing in September, and the China International Import Expo in Shanghai in November.
Attended by 54 African delegates, FOCAC was the largest high-level diplomatic event China has ever hosted. The concept of building a community with a shared future for mankind was further elaborated upon and put into practice through fruitful diplomatic events and President Xi’s overseas visits. His footprints spanned 13 countries in Asia, Africa, Europe, Latin America, and Oceania. China also established diplomatic ties with the Dominican Republic, Burkina Faso, and El Salvador.
7. PLA Navy projects a new image
President Xi inspected the Chinese People’s Liberation Army (PLA) Navy in the South China Sea on April 12. The navy review was the largest of its kind in the history of the People’s Republic of China. Since 2018, the PLA has thoroughly implemented President Xi’s thoughts on building a strong military in the new era. The PLA has also taken on the responsibility for guarding China’s national flag and firing salute cannons, and the armed police force was moved under the leadership of the Communist Party of China (CPC) Central Committee and the Central Military Commission (CMC). On May 13, China’s first domestically-built aircraft carrier set out for sea trials. And in April, the brand new Ministry of Veteran Affairs started operations, aiming to provide a centralized and unified support system for the country’s veterans.
8. China boosts green economic development along Yangtze River
At a conference following an inspection of environmental management and construction work along the Yangtze River on April 26, President Xi stressed that environmental restoration must be the top priority when it comes to the development of the Yangtze River Economic Belt. Economic growth along the river requires scientific and orderly development, he said. A national conference on environmental protection was held in early May, during which President Xi vowed that China will fight the good fight against pollution and push ecological civilization to a new level.
9. China launches income tax and welfare reforms
On August 31, the Amendment to the Individual Income Tax Law was officially approved, which encompasses major revisions in areas such as income tax, brackets, the tax-free threshold, and tax-deductible expenses. The reform helps to reduce the burden on taxpayers.
China also adopted measures to improve the welfare system. On July 1, the State Council announced that a central adjustment fund will be set up to regulate pension funds in various regions, a move that would help guarantee timely and complete payments to retirees. And by the end of September, 46.2 million people benefitted from rural and urban subsistence allowances.
On October 1, a new rehabilitation system to help children with disabilities, such as by covering their treatment expenses, came into effect. Later that month, on October 10, 17 cancer-fighting drugs were added to the national basic medical insurance program, easing the financial burden on cancer patients.
10. China tightens rules on the vaccine industry
In July, a major vaccine manufacturer, Changsheng Bio-technology Co. in Changchun, Jilin Province, was found to have fabricated production records and produced substandard vaccines. President Xi ordered a thorough investigation into the case and severe punishment for those found responsible. A number of people at the company were arrested, and a 9.1 billion yuan fine (1.3 billion U.S. dollars) was imposed on the company.
Following the scandal, China’s lawmakers tightened the rules for the vaccine industry. On October 16, a compensation plan for victims of faulty vaccines was made public, with special funds set aside for compensation claims. On November 11, a new draft law calling for stricter management of the production, research, and distribution of vaccines was submitted to the Standing Committee of the National People’s Congress.
