Party meeting in Beijing - China drives the modernization of the economy forward
China's Communist Party aims to drive the modernization of the second largest economy. A "high-quality development" is the key task in building a "modern socialist country," according to a statement from the Central Committee of the Party at the end of the so-called Third Plenum. This meeting typically only takes place every five years. The party leadership discusses the future economic course during the gathering.
As usual, the initial summary at the end of the four-day session was just a party spokesperson's speech. Concrete measures from the meeting may not become clear until the coming weeks and months.
President Xi Jinping used the meeting to reinforce China's ambitions to become a High-Tech power. In the report of the Central Committee, there was mention of further support for "new productive forces."
The term "new productive forces," coined by the State and Party chief, refers to driving economic development through the creation of modern industrial sectors. The Central Committee also addressed acute economic problems. For instance, they hinted at various measures to address risks on the real estate market and to reduce the high debts of local governments.
The economy faces great challenges
Discipline is to be strengthened and the fight against corruption is to be intensified. The tasks outlined at the Party Congress are to be completed by 2029, the 80th anniversary of the founding of the People's Republic of China.
Beijing is under pressure to respond to the growing challenges of the second largest economy. Consumption is stalling as many Chinese prefer to save their money for uncertain times. Families are particularly concerned about the ongoing crisis on the real estate market. Young people in particular are having trouble finding jobs.
The Communist Party in Beijing, recognizing the economy's modernization as a crucial aspect of China's second largest economy, has outlined its commitment to drive development during party meetings. The emphasis on "high-quality development" and "new productive forces" underscores the Party's aim to transition China into a modern socialist country. Furthermore, with the economy facing various challenges, the Communist Party has proposed measures to mitigate risks on the real estate market and reduce local government debts.
