China will give $80 million in funding for BRICS cooperation plans, Chinese President Xi Jinping said on Monday, while the bloc of five emerging countries pledged to oppose protectionism.

Xi offered 500 million yuan ($76.4 million) for a BRICS economic and technology cooperation plan, and another $4 million for projects at the group's New Development Bank (NDB) during a three-day leaders summit in the southeastern city of Xiamen.

China's new contributions to BRICS pale in comparison to its $124 billion pledge earlier in May for Xi's own Belt and Road initiative, which aims to expand links between Asia, Africa, Europe and beyond as a new way to boost global development.

The announcement came amid questions over the relevance of BRICS and China's commitment to the NDB in light of the Belt and Road initiative and the China-led Asian Infrastructure Investment Bank, both key efforts by Beijing to bolster its global influence.

Xi said during a plenary session at the BRICS leaders' summit that the five emerging economies - Brazil, Russia, India, China and South Africa - should increase cooperation in sectors such as trade and investment, monetary policy and finance, and sustainable development.

"We should redouble our efforts to comprehensively deepen BRICS partnerships and open BRICS cooperation," he said.

Set up in 20l5 as an alternative to the World Bank, the Shanghai-headquartered NDB was seen as the first major BRICS achievement after the group came together in 2009 to press for a bigger say in the post-World War Two financial order created by Western powers.

The BRICS leaders will gather in Xiamen through Tuesday, giving host China its latest chance to position itself as a bulwark of globalisation in the face of US President Donald Trump's "America First" agenda.

A draft "Xiamen Declaration" seen by Reuters, a formal version of which is expected to be issued later, said BRICS countries will continue to firmly oppose protectionism as they are committed to an "open and inclusive" multilateral trading system.

The communique emphasised the need to be vigilant in guarding against "inward-looking policies" that could hurt global market confidence, and called upon all countries to fully implement the Paris climate agreement.

The summit has been overshadowed by North Korea's sixth and most powerful nuclear test, which came on Sunday just hours before Xi opened the meeting with a keynote speech, and prompted a vow of a "massive" military response from the United States if it or its allies were threatened.

Though China's Foreign Ministry has condemned the test, Xi did not mention North Korea during that 45-minute address or in his televised remarks during Monday's plenary session.

The BRICS grouping said in its draft communique that it strongly deplored Pyongyang's test, but that the problem over its nuclear programme should only be settled through peaceful means and dialogue.

"We express deep concern over the ongoing tension and prolonged nuclear issue on the Korean peninsula," it said.

North Korea tested two ICBMs in July that could fly about 10,000 km (6,200 miles), putting many parts of the US mainland within range and prompting a new round of tough international sanctions.

Though angered over the tests, China - North Korea's closest ally - has lambasted the West and its allies over recent weeks for promoting the "China responsibility theory" for North Korea.

The UN Security Council was set to meet later on Monday to discuss new sanctions against the isolated regime.

Chen Fengying, an economics expert at the state-backed China Institutes of Contemporary International Relations, said on the sidelines of the BRICS meeting that at the most BRICS countries will take note of the North Korean problem.

"Intervention is rather difficult. Our cooperation is mainly on global governance," she said.

China’s government pledged Monday to deliver robust growth, pursue advanced technology and boost military spending while urging the public to embrace President Xi Jinping’s rule as its ceremonial legislature prepared for changes to allow him to stay in power indefinitely.

The plan to end constitutional limits on Xi’s term as president has overshadowed the meeting of the National People’s Congress, which usually is used to showcase economic initiatives and plans for social programs and other government work.

In a nearly two-hour speech to the legislature, Premier Li Keqiang did not mention the scrapping of term limits but emphasized the primacy of Xi and the ruling Communist Party he leads in all aspects of Chinese life.

“Resolutely safeguard General Secretary Xi Jinping’s core status and the authority of the party’s central committee and its centralized and unified leadership,” Li said in a speech to nearly 3,000 delegates to the ceremonial legislature in the Great Hall of the People.

The slide toward one-man rule under Xi, already China’s most dominant figure of recent decades, has fueled concern Beijing is eroding efforts to guard against the excesses of autocratic leadership and make economic regulation more stable and predictable.

The president’s office has few powers but Xi’s posts as ruling party general secretary and chairman of the commission that controls the party’s military wing, the People’s Liberation Army, already have no term limit. By tradition since the early 1990s, one person has held all three posts at the same time.

“If it gets approved, you can describe his attempt to abolish term limits as really to make China medieval again, not to make China great again,” said Warren Sun, a historian of the Chinese Communist Party at Australia’s Monash University.

The 64-year-old Xi has appointed himself to head bodies that oversee national security, finance, economic reform and other functions, effectively sidelining Li, the party’s No. 2 figure.

Chinese officials have defended the end of Xi’s term limits as necessary to ensure continuity as Beijing undertakes a sprawling long-range agenda aimed at making state industry competitive and productive, developing profitable high-tech industry, reducing poverty and cleaning up China’s battered environment.

In line with this agenda, Li, the premier, set this year’s growth target at around 6.5 percent, which would be among the world’s strongest if achieved.

It comes amid a marathon campaign to nurture self-sustaining growth based on domestic consumption instead of trade and investment and to rein in surging debt that prompted ratings agencies to cut Beijing’s government credit rating last year.

Li said the target would enable China to achieve “relatively full employment.”

Private sector analysts have questioned whether Beijing can achieve such strong growth without infusions of bank lending and government spending, which would set back its reforms.

Last year’s growth came in at 6.9 percent but that was supported by a boom in bank lending and real estate sales that regulators are trying to rein in amid concern about debt that has soared to the equivalent of 270 percent of annual economic output — unusually high for a developing country.

Li promised progress on an array of politically challenging plans including the restructuring or bankruptcy of “zombie enterprises,” or money-losing but politically favored companies that are kept afloat by loans from government banks.

The premier said Beijing will speed up state-led development of integrated circuits, mobile communications, aircraft engines, electric cars and other technology.

China’s military spending, already the world’s second-highest behind the United States, will rise 8 percent to 1.1 trillion yuan ($173 billion) as Beijing prepares to launch its second aircraft carrier and develop stealth fighters and advanced missiles.

“We will stick to the Chinese path in strengthening our armed forces, advance all aspects of military training and war preparedness,” Li said. He said the military would “firmly and resolvedly safeguard national sovereignty, security and development interests.”

The move to consolidate even more power under Xi comes as foreign governments, already wary of China’s expanding influence abroad, are closely watching shifts toward greater authoritarianism.

Chinese investments abroad in technology and banking are under closer scrutiny while foreign companies and governments complain Beijing hampers access to its markets in violation of its free-trade commitments.

Xi’s ambitious “Belt and Road” initiative to link up Asia and Europe by building roads, ports and other infrastructure has raised concerns about Beijing’s strategic ambitions and debt burdens for host countries.

The move has been met with widespread concern among liberal intellectuals and political observers. Members of the ceremonial legislature, unsurprisingly, expressed support for the scrapping of term limits.

“This is conducive to the continuation of the management of our country,” said delegate Li Xiuxiang, a professor at the Jiangxi University of Finance and Economics. “It can keep the system stable over the long term and lay a good foundation for the system’s gradual reform.”

Legislators also are due to endorse the appointment of economic and other officials picked by the party. That is widely expected to include the promotion of Xi’s top economic adviser to a post overseeing reform.

Nepal's Prime Minister KP Sharma Oli, who is on a six-day official visit to China, met his Chinese counterpart Li Keqiang at the Great Hall of the People in Beijing today.

On the occasion, the two countries signed agreements on 10 different topics including one on the construction of railway. Four Memorandum of Understanding ( MoUs) were also inked during the occasion.

The agreement reached between the two sides also includes promoting energy cooperation. They have also reached understanding regarding the use of highway in Tibet, energy, economic and technical cooperation and human resources development.

Copyright: The Kathmandu Post/ANN