Following its third plenum, the 20th Central Committee of the Communist Party of China has adopted the ‘Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernisation’.
High-level objectives of the draft resolution cover comprehensive reform, the development of a Chinese socialist system, and the modernisation of the country’s system of and capacity for governance, according to a communique released after the meeting.
From an economic perspective, the plenum concluded that a more fair and dynamic market environment needs to be established in order to achieve these goals. The communique stated that market restrictions will be lifted and effective regulation implemented to maintain order and prevent market failures, with resource allocation made as efficient and productive as possible.
Incentive and contrasting mechanisms need to be enhanced to promote high-quality development and supply-side structural reform, the communique continued, thereby facilitating further growth.
The committee advocated for “institutional opening up”, increasing foreign trade and reforming management systems for both inward and outward investments. Referenced in relation to this was the Belt and Road initiative, introduced by President Xi Jinping in 2013, which seeks to link continents through land and maritime networks in order to improve regional integration, trade, and economic growth.
Along with furthering international connections, the committee stated that it will deepen integration between the real and digital economy. This will support the development of the service sector, infrastructure modernisation, and the resilience and security of industrial and supply chains, it said. Scientific and technological reform are also high on the agenda.
These comments follow disappointing results for China’s GDP growth. The economy was up by 4.7% in the second quarter, falling short of Reuters’ 5.1% forecast and slipping from Q1’s 5.3% growth.
Coordinated reforms in macroeconomic governance as well as fiscal, tax, financial and other core sectors were highlighted by the communique, along with improving macro policy orientation, the national strategic planning system and policy coordination mechanisms.
©Markets Media Europe 2024
