MOST recently, the Third Plenum of the 20th CPC Central Committee was held in Beijing. Prominent economists remain optimistic about achieving the China’s annual social and economic development targets with incentives from the third plenum and anticipated policy introductions, which will greatly release China’s growth potential. China’s economic growth rate in the first half of the year will still be faster than that of major economies such as the US, the Eurozone, and Japan. According to the National Bureau of Statistics, China’s GDP reached around 61.68 trillion yuan (about US$8.65 trillion), and grew 5 percent year on year in the first half of 2024. In the second quarter, the country’s GDP expanded by 4.7 percent year on year.
The Communiqué of the Third Plenum of the 20th CPC Central Committee announced new strategic road map for China’s deepening forms and modernization in the days to come. It seems that effective implementation of macro policies, strive to expand domestic demand, develop new quality productive forces in light of local conditions, move faster to foster new drivers of foreign trade, take solid steps toward green and low-carbon development, ensure and improve the people’s wellbeing, and consolidate and build upon achievements in poverty alleviation will be carried out to achieve further stability and sustainability of the macro-economy.
It is a holistic and comprehensive policy supporting structural reforms to further strengthening and diversification of macro-economy, opening-up, high Chinese socialism qualitative development, liberalization of market, good governance, innovation and last but not least integrated and balanced development of rural and urban areas which has stimulated the message of consistency and continuity in China’s short & long term policies which is good omen for the regional as well as global economies to achieve to desired goals of socio-economic prosperity, financial integration, greater connectivity and qualitative industrialization.
It sets 2035 as building a high-standard socialist market economy in all respects, further improved the system of socialism with Chinese characteristics, generally modernized national system and capacity for governance, and basically realized socialist modernization which is achievable and functional. One of the strategic priorities of this Communiqué is further liberalization of market through a fairer and more dynamic environment through efficient and productive resources allocation and effective regulation will be institutionalized to better maintain order in the market and remedy market failures.
Additionally, achieving of high-quality development will be secured through deepening supply-side structural reform, improving incentive and constraint mechanisms along with development, and creating of new drivers and strengths for realizing growth which is indeed a right policy in right direction. Easy and smooth integration of the real and digital economy will be achieved through fostering of new quality productive, developing the service sector, for modernizing infrastructure, and for enhancing the resilience and security of industrial and supply chains which is a giant step towards further digitalization and e-commerce.
Securing all around innovation through deep comprehensive reforms in education, structural scientific and technological reform, and institutional reforms for talent development is need of the hour which would be new bunch mark of qualitative human capital. The final report rightly suggests improving the macroeconomic governance through pursuing coordinated reforms in the fiscal, tax, financial, and other major sectors and enhancing the consistency of macro policy orientation, with the national strategic planning system and policy coordination mechanisms. Securing of the integration of urban and rural development promotion of equal exchanges and two-way flows of production factors between the cities and the countryside is a right approach narrowing the disparities promoting their common prosperity and development.
Further opening-up and modernization have become strategic priorities of New China in which deepening of the foreign trade structural reform, further reform the management systems for domestic and FDIs, improve planning for regional opening up, and refine the mechanisms for high-quality cooperation under the Belt and Road Initiative would play vital role. Thus Communiqué vividly reflects China’s strong commitments towards further international cooperation, economic globalization, consolidation of the Global South, cooperation on qualitative industrialization in which Xi’s Global Initiatives of development, security and civilizational would be supplementary in the days to come.
It would further stimulate China’s high-quality development and high-level opening-up through institutionalization of qualitative industrialization, persuasion of green technologies and digitalization. Additionally, it epitomizes a new historical period of China’s structural reform and opening-up. It also vividly reflects China’s determination to overcome difficulties with greater strength and more specific policies, systematic plans, promoting the country’s comprehensive development and further opening-up to the outside world. It stands for further liberalization of the economy, policy guidance, and governance, which ultimately foster more development, social productivity, and mutual trust.
It guarantees social justice and equality, and always supports people’s centric policies which show its uniqueness, diversity and dynamic. Thus it conveys the message of constructive politics, further opening-up and international cooperation. Hopefully, the Communiqué will further integrate structural reforms and advance Chinese modernization through further comprehensively deepening reform and advancing Chinese modernization. It will give China’s development direction a high degree of certainty, coherence, and continuity. Last but not least, it is anti-protectionism and promotes opening-up.
It is anti-hegemony and spreads the spirit of greater harmony. Thus it promotes the construction of an open world economy for the benefit of all countries. Definitely, it will bring more good news to encourage innovation, stimulate market vitality, and optimize the business environment. In summary, the communique pinpoints and addresses the major issues China is facing and anticipates the logjams in future economic and social development, and proposes integrated measures to address these challenges.
Introduction of stronger policies to stabilize economic growth, stabilize the property market, boost the stock market, support the development of the private economy, and improve the employment rate and income level of residents is the need of hour. Moreover, consumption tax, central and local fiscal reforms, social security, a unified national market and technological innovation should also be institutionalized. A constructive system of innovation will be supplemental to achieve upgraded industrial structure and technological revolution which must be integrated.
—The writer is President, Pak-China Corridor of Knowledge, Executive Director, CSAIS, regional expert: China, CPEC & BRI.
