It sounds boring but the State Council’s Report on the Work of the Government to the second session of the eleventh National People’s Congress is crucial for those of us trying to decipher the thoughts of China’s leadership.

The March National People’s Congress (NPC) in Beijing was where the signals were sent out to both the 3,000 deputies attending and the millions of local party cadres nationwide. They take it very seriously.

Unemployment was a major theme. The message everyone got was that unemployment has ballooned following the slowdown in the export sector, and it cannot be allowed to grow any more. Quite simply everyone knows that you cannot sack anyone now in China.

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