China's Economic Blueprint Emphasizes 'Development' and 'Technology' Amid Sluggish Growth

The Chinese Communist Party's latest economic policy blueprint underscores a strong emphasis on "development," with the term appearing 133 times, marking a significant increase from previous years. This highlights China's focus on achieving high-quality growth and advancing technological innovation amid ongoing economic challenges.

China's Economic Policy Blueprint Prioritizes Growth, Highlighting ‘High-Quality Development’ and Increased ‘Technology’ Focus

The Chinese Communist Party's economic policy blueprint, published this week, indicates that the leaders have prioritized the country's growth.

Following the third plenum, a high-level meeting, the party issued a resolution on July 21 entitled "Further Deepening Reform Comprehensively to Advance Chinese Modernization." The document is approximately 22,000 characters in length.

According to a Nikkei survey, the policy blueprint contained 133 instances of the term "development" in the context of economic growth and other areas. The term is particularly frequently used in the phrase "high-quality development."

This is a significant increase from the 86 instances of the term "development" in the economic blueprint released following the third plenum of 2013.

This is the most frequent use of the term "development" in all full-text economic blueprints produced by third plenums dating back to 1984, except the 2008 document, in which the term was used 149 times.

Typically, Communist Party members convene the third plenum twice a decade to discuss long-term economic reforms. However, the third plenum 2018 is considered an anomaly because it primarily focused on state appointments.

The text of the third plenum of this year and the meeting in 2013 are being compared by Nikkei due to their shared interest in the economy.

The post-pandemic recovery is feeble, and the Chinese economy is still trapped in a real estate slump with no end in sight. In 2024, the government intends to achieve an economic growth rate of approximately 5%; however, the International Monetary Fund anticipates this rate will decline to 3.3% in 2029.

China Cuts Interest Rates, Emphasizes Tech Innovation and Security Amid U.S. Tensions and Market Concerns

On July 22, the Chinese central bank reduced a critical interest rate to revive the economy.

Tensions between the United States and China regarding advanced technology could impede growth. The revised economic blueprint referenced science and technology 52 times, a significant increase from the nine instances in the 2013 document.

This year, the Chinese term "technological innovation" was used 51 times instead of 44 times in 2013. This modification indicates Beijing's endeavors to rapidly establish a domestic semiconductor supply chain that is not dependent on the United States.

Beijing has faced challenges preserving political and social stability amid its competition with Washington for international hegemony. The Communist Party emphasized national security in the blueprint by incorporating "security" 41 times, a 70% increase from 2013. Additionally, the frequency of a term that denotes "risk"increased from eight instances in 2013 to 18.

Foreign companies that conduct business in China are concerned that the country's leadership may be excessively preoccupied with national security. Many private-sector companies in China are anticipating increased state regulation. However, the economic blueprint appears designed to alleviate those concerns, as evidenced by the words used.

The term "opening up," which frequently signifies the relaxation of restrictions on foreign capital, is used 35 times, a rise from 28 in 2013. The term "private sector" is used only once in the 2013 document, but it is used ten times in the blueprint for this year.

"We will formulate a private-sector promotion law," the current blueprint reads.

However, the blueprint appears to downplay the market. This year's document employs the term "market" 55 times, a decrease from 81 in 2013. The blueprint for that year pledged to "further the reform of the economic system by emphasizing the critical role of the market in resource allocation."

The recently released blueprint uses the term "free trade" only three times in reference to international commerce, a significant decrease from 2013.

The number of references to "reform" increased marginally from 2013 to 144; however, the term is employed in various contexts, including military and party reforms. Instances in which "reform" is explicitly associated with the economy are reduced to a mere one-quarter of the total.

Conversely, the term "Chinese modernization" is referenced 23 times. This is the initial instance where the term denotes a national development paradigm distinct from the West and has been utilized in a third plenum blueprint. Youth unemployment should have been explicitly addressed.