Addressing a new wave of technological revolution and industrial transformation in China.
Chinese Communist Party held its third plenum from July 15th to 18th, 2024.
Continuation of Xi's plan to use advanced manufacturing and tech innovation for growth.
Emphasis on 'high-quality development' as the guiding force for China's economy.
Xi Jinping was portrayed as a reformer.
China's Ruling Party Sets Out Its Vision of Economic Reform
The Chinese Communist Party held its third plenum from July 15th to 18th, 2023, with over 360 members of the Central Committee in attendance, including senior political and military leaders and state firm bosses. The meeting focused on the doctrine of “Further Deepening Reform Comprehensively to Advance Chinese Modernisation”. Xi Jinping, China's ruler since 2012, was portrayed as a reformer on par with Deng Xiaoping. The meeting signaled few initial steps to boost demand or address the property slump but emphasized “high-quality development” as the guiding force for China's economy. The ruling Communist Party indicated that China will continue with Xi's plan to use advanced manufacturing to generate growth through tech innovation and becoming more resilient against US trade curbs. Chinese shares trading in Hong Kong fell 2.3% following the release of the policy document, while onshore stocks rebounded after officials provided more details at a briefing. The property sector, which once accounted for a quarter of China's GDP, was mentioned only in the context of managing risk, signaling no dramatic stimulus measures are forthcoming.
The meeting also highlighted the need to address a new wave of technological revolution and industrial transformation in China. Despite some critics blaming Xi's heavy-handed ways for China's economic stumbles, the official summary of the meeting focused on the hazards of a turbulent world and opportunities of innovation. The communist party sees no need for a decisive break with the past and continues to use Deng Xiaoping's rise to power and his momentous opening-up of China's economy as inspiration for their economic reform.
China faces “a new wave of technological revolution and industrial transformation”, according to the official summary. Investors in China may be waiting for promising signals from the government, but more specific proposals may be made public in the coming days. The meeting also emphasized sticking with Xi's state-led, tech-focused strategy while making it cleaner, more fair and keeping a careful eye on national security.
President Xi Jinping emphasized 'high-quality development' as the guiding force for China's economy, signaling few initial signs of major steps to boost demand or address the property slump.
The ruling Communist Party indicated that China will continue with Xi's plan to use advanced manufacturing to generate growth, through tech innovation and becoming more resilient against US trade curbs.
Chinese shares trading in Hong Kong fell 2.3% following the release of the policy document, while onshore stocks rebounded after officials provided more details at a briefing.
The property sector, which once accounted for a quarter of China's GDP, was mentioned only in the context of managing risk, signaling no dramatic stimulus measures are forthcoming.
