China’s leadership reiterated its focus on enhancing domestic technology at the recently concluded Third Plenum, as reported by state media.
The meeting emphasized the need for China to adapt to the evolving scientific and technological landscape and make significant breakthroughs by mobilizing resources nationwide.
The government’s commitment to balancing development with national security was underlined, without disclosing any immediate policy changes.
According to analyst Liqian Ren from WisdomTree, China’s strategy aims to strengthen its technological capabilities to boost confidence and prevent potential containment by other nations.
The meeting also saw the passage of a resolution on deepening reform to advance Chinese modernization, with further details expected to be revealed soon.
Economist Tianchen Xu from the Economist Intelligence Unit highlighted innovation and managed markets as key aspects of the Third Plenum, underscoring China’s focus on enhancing productivity amid the backdrop of U.S.-China rivalry.
While the U.S. has labeled China as a competitor and imposed restrictions on technology access, China is prioritizing domestic high-tech development and addressing financial risks. Xu noted that any market-oriented reforms in China would be cautious to safeguard national security, with expectations still high for fiscal reforms.
The country reaffirmed its commitment to achieving full-year growth targets, as it announced a 2024 GDP target of around 5% in March.
The emphasis on actively expanding domestic demand in recent high-level meetings indicates a short-term focus on economic policies, with efforts to integrate rural and urban areas and implement fiscal and tax reforms to bolster domestic demand. The successful implementation of these policies will be crucial moving forward.
