Expected blueprint for economic growth

A photo shows a night view of the CBD area in downtown Beijing, capital of China. [Photo/Sipa]

The forthcoming 20th National Congress of the Chinese Communist Party is to draft a plan for China’s economic development for the next five years and beyond, and highlight the country’s strategic solutions to improve growth quality, with a focus on combating unbalanced and under-development, they said Experts.

The congress, which opens in Beijing on Sunday, will be closely followed as it will set national economic policy goals for a period crucial for China to achieve the goal of building a modern socialist country and national revitalization realize.

The event also comes as China faces increasingly complex risks and challenges, including the ongoing COVID-19 pandemic, rising geopolitical uncertainties, a bleaker outlook for the global economy, which is being fueled by high inflation and tighter financial conditions, and divergent macroeconomic policies from major countries countries are dampened.

Enabling the stable and high-quality growth of the world’s second largest economy will be one of the strategic tasks of the country’s top leadership for the next five years, as it is of great importance to the country’s modernization efforts and also has a major impact on the country will be global development, analysts said.

“China’s economy remains an important force to promote global economic stabilization and recovery and reshape the global system of economic governance,” said Long Haibo, senior researcher at the State Council Development Research Center.

“Even if the long-term fundamentals of China’s economy have not changed, in the coming strategic period we need to watch out for new changes and strengthen our own development resilience,” Long said.

High-quality economic growth will be a key policy issue as China enters a new phase of development and future policy deals must emphasize the need to tackle unbalanced and under-development in a more systematic and targeted manner, he said.

Long said he expects the upcoming 20th CPC National Congress to provide guidance for China to better address major challenges, including maintaining stable industrial and supply chains against external shocks, strengthening technological self-reliance while advocating greater opening-up, effectively boosting domestic demand and further narrowing income and wealth disparities between rural and urban areas.

China’s economy is now at a critical juncture as its growth rate has slowed amid a resurgence of domestic COVID-19 cases.

External challenges such as interest rate hikes by major economies’ central banks and uncertainties in external demand are also putting pressure on China’s economic recovery. According to the International Monetary Fund forecast, global economic growth is expected to slow from 6 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023.

Xi Jinping, general secretary of the CPC Central Committee, said the country must explore and develop new ideas and policies to address weaknesses and deficiencies in the economy, while at the same time making greater efforts to consolidate its foundations and take full advantage of the national advantages to exhaust. He made the comments at a workshop attended by senior party and government officials in July.

Liu Ying, a researcher at the Chongyang Institute for Financial Studies at Renmin University of China, said China remains capable of maintaining an annual growth rate of 4 to 5 percent over the next few years and making significant contributions to global growth while the country continues to do so, deepening reforms and unleashing their innovative potential.

China’s policymakers are likely to place more emphasis on boosting the country’s innovation capacity, which will be a key force in promoting China’s high-quality development. Future strategies should focus on fostering new growth drivers in areas such as the digital economy, modern agriculture and advanced manufacturing, which will help unlock new potential in the country’s economy, Liu said.

“In terms of transforming and restructuring global industrial and supply chains, China can play an important role in this process, which I think is very crucial. The country should come up with new ideas and strategies to advance the process,” Liu added.

Cai Zhibing, associate professor of economics at the Party School of the CPC Central Committee, said China’s high-quality economic growth is also characterized by the pursuit of shared prosperity after the country eliminated absolute poverty.

He expects deeper reforms to be carried out to further improve the income distribution system and accelerate the process of narrowing the wealth gap and revitalizing the country’s vast rural areas, which will be beneficial in terms of unleashing the potential of domestic demand and consumption becomes.

Cai also called for bolder market-oriented reforms, including further improving the business environment for private and foreign companies, streamlining the relationship between the market and the government, and increasing the efficiency and competitiveness of state-owned enterprises.

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