The Third Plenary Session of China’s Central Committee in 2024 | Wilnesh News

BEIJING – China’s leaders stepped up efforts to promote domestic technology development at a high-level meeting of the Third Plenary Session of the Central Committee of the Communist Party of China that concluded on Thursday, according to an official. State media read out.

China must “adapt to a new round of scientific and technological revolution and industrial transformation” The official English communiqué said. It also said China would “improve a new system for mobilizing national resources to make breakthroughs in key technologies.”

The statement confirmed Beijing’s commitment to balancing development and ensuring national security but disclosed no other policy changes.

“This communiqué (shows China’s leadership) is sticking to its guns because it wants to avoid the worst-case scenario, but it is not yet convinced that the policies adopted by the United States are the best for China,” said Ren Ren, head of quantitative investment at WisdomTree. Li Qian said. She was referring to easy monetary policy with low interest rates in a phone interview.

“This is the government’s calculation. Technological progress is China’s ultimate confidence booster, and the United States cannot use these technological bottlenecks to contain China,” she said.

Official media said that the Central Committee of the Communist Party of China passed a meeting on “deepen reform“To “promote China’s modernization.”

Details of the resolution are expected to be announced in the coming days.

“The results are in line with our expectations that the Third Plenum will be a continuation of existing policy adjustments,” Xu Tianchen, senior China economist at the Economist Intelligence Unit, said in a report.

“I would emphasize that ‘innovation and market management’ are the two primary keywords of the Third Plenary Session,” Xu said. “In the context of competition between China and the United States, almost unexpectedly, innovation and productivity improvements are all priorities.”

Under the Biden administration, the United States has labeled China a competitor and sought to restrict Beijing’s access to advanced technologies such as semiconductors in the name of ensuring national security.

At the same time, Beijing has been promoting domestic high-tech development and addressing what it sees as risky financial overexpansion, particularly in real estate.

Regarding the latest plenary meeting, “We believe that any market-oriented reforms will be measured and implemented within the scope of not harming national security,” Xu said. “We still have high expectations for fiscal reform, although the communiqué was very brief on the subject.”

Thursday’s report said China will strive to achieve its full-year growth target. The country announced a GDP growth target of around 5% in 2024 in March.

Beijing has also said it will “actively” expand domestic demand, a term it has only used in recent high-level meetings.

“Expanding domestic demand appears to be focused primarily on short-term economic policies,” said Bruce Pang, chief economist and head of research for Greater China at JLL.

“Other parts seem to be more focused on the supply side than the demand side,” he said. However, he pointed out that efforts in urban and rural integration, people’s living standards, fiscal and tax reform and other aspects will help expand domestic demand.

Overall, Pang said, the readout reiterated what has been shared in other meetings and speeches, showing that the key will be the implementation of the policy.

The ruling Communist Party of China Central Committee is composed of more than 300 people, including full and alternate members, and usually holds seven plenary meetings every five years.

The Third Plenary Session of the CPC Central Committee has always focused on economic policy. In 1978, under the leadership of Deng Xiaoping, this conference officially announced Major changes in communist countries, such as China’s “Reform and Opening”.

Wisdom Tree’s Ren Zhengfei pointed out that this year’s plenary session comes as China’s leaders are encountering a relatively new situation: slowing economic growth and slowing economic growth. most business from where non-state-owned enterprisesthey are less controllable than state-owned enterprises.

“The problem is, if they introduce a draconian policy and it doesn’t work,” she said, “for a government like China, the negative consequences are quite significant.”

—CNBC’s Sonia Heng contributed to this report.