Chinese authorities to discuss the country’s global development plan for the next five years
The Central Committee of the ruling Chinese Communist Party, headed by Xi Jinping, plans to meet in Beijing at the end of October to discuss a national development plan for the next five years..
The government sets economic and social priorities every five years. This year, such a discussion will be held for the fourteenth time..
Given the global turbulence caused by the pandemic coronavirus, and growing tensions between the US and China, the meeting will begin at a particularly critical moment for the Asian nation. Economists predict that in the next few years the country will firmly become one of the largest economies in the world..
Next year the Communist Party will be one hundred years old. In my time Xi Jinping promised that for this anniversary he would build in China «moderately prosperous society». In 2022 at the twentieth party congress light will be shed on the future plans of the PRC leadership.
There are still many dates ahead, which the authoritarian government has named as development targets. Plan «Made in China 2025» assumes dominance in high-tech and key manufacturing areas, and «Chinese standards 2035» must provide the Celestial Empire with leadership in the field of global specifications for leading technologies.
The final text of the upcoming five-year plan is to be announced next year at the general assembly of the people’s representatives, which usually takes place in March..
«One thing that I think will stand out is supply chain security. Some items will be subject to serious adjustments. There will now be a strong focus on strengthening sectors related to national security and basic livelihoods», – said Dan Wang, Chief Economist of Shanghai Hang Seng China.
After years of criticism that China has unfairly taken advantage of global markets, the US presidential administration Donald Trump took a tougher stance towards Beijing. Many expect it to continue in one form or another, even if the Democratic candidate Joe Biden will become the new president. Trump put pressure on China to please American business, while hindering Beijing’s technological progress by imposing restrictions on companies like telecommunications giant Huawei.
Uncertainty over whether Chinese tech enterprises will be able to continue partnering with US companies is accelerating Beijing’s efforts to secure future technological progress.
This month, Xi Jinping talked about supporting quantum mechanics, which could spur the development of supercomputers that can process much more information than modern systems..
With national security in mind, Yue Su, chief economist at the Economist Intelligence Unit (EIU) expects five-year plan to place particular emphasis on semiconductor support. She also expects the discussion to raise the issue of increasing the resilience of energy security rather than relying on oil imports, food security amid trade tensions with agricultural producing countries, and a shortage of pork, a staple in Chinese households..
From a social point of view, Su expects China to find more ways to increase consumption, including lifting restrictions on the number of children a family can have..
China’s economic growth slows down in the past few years amid fears of rapid growth fueled by sovereign debt. In line with the current five-year plan, which set the government’s priorities for 2016-2020, China has gradually moved towards relying more on consumption for growth rather than exports..
In the past few months, government officials have spoken about a new phrase that is expected to underpin the concept «double circulation». In a broad sense, it is divided into two parts: «internal circulation», focused on the growth of China’s domestic market, and «external appeal» — trade with other countries.
With a closer look at China’s domestic market, analysts generally expect the upcoming development plan to provide more support for public health, education, sports, culture and tourism..
«In the next five years, China will indeed focus directly on quality growth, so the speed of progress may not be as fast as before.», – said Zong Liang, Chief Scientist, Bank of China.
He said the next five years will be critical in taking the economy to the next level..
Xi Jinping said further opening up the Chinese market to foreigners and improving the local operating environment remain national goals, even if critics say growth is too slow.
He also recalled in his speech at the UN last month that China plans to be carbon neutral by 2060.
China’s new five-year plan to contribute to global development