According to a state media readout, in high-level meeting called Third Plenum that ended Thursday China’s leaders doubled down on boosting domestic technology. An official English-language communications channel quoted “China must adapt to the new round of scientific and technological revolution and industrial transformation.” It also said China must adapt to the new round of scientific and technological revolution and industrial transformation.
The readout affirmed Beijing’s commitment to balancing development with ensuring national security, and did not otherwise reveal policy changes. Tianchen Xu, senior economist China at the Economist Intelligence Unit said in a note “The outcome is inline with our expectations that the Third Plenum is a continuation of existing policy tweaks.” “Innovation and productivity enhancements top all priorities, almost unexpectedly, amid the grand backdrop of US-China rivalry.”
Beijing also reiterated that it would increase its domestic demand. The readout further mentioned that China would work to achieve its full-year growth targets. The GDP target for 2024 was around 5%. Bruce Pang, chief economist and head of research for Greater China at JLL quoted “Expanding domestic demand seems to be mainly focused on short-term economic policies,” He further added that “Other parts seem to pay more attention to the supply side than the demand side.” However, he noted that efforts to further integrate rural and urban areas, living standards and fiscal and tax reforms are all helpful for expanding domestic demand.
Seven plenary meetings during each five-year term are held by the Central Committee of the ruling Chinese Communist Party which comprises of more than 300 people. The Third Plenum has traditionally focused on economic policy. Under Deng Xiaoping’s leadership in 1978, the meeting officially heralded significant changes for the communist state, such as China’s reform and opening.
