Chinese Communist Party Commits to Economic Opening, Marketisation and Digital Innovation in 14th Five Year Plan

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The Chinese Communist Party (CCP) has unveiled key proposals and targets for the 14th Five Year Plan scheduled for implementation during the period from 2021 and 2025.

The fifth plenary session of the 19th Central Committee of the CCP was held on 26 – 29 October, to discuss targets and proposals for the 14th Five Year Plan that will guide Beijing’s policy during the first half of the 2020’s.

A communique passed at the session and released on 29 October indicates that external opening, marketisation and the digital economy will be key focal areas for China over the next five years.

The fifth plenary session called for “high-level external opening [and]…firmly implementing external opening across a greater scope and deeper levels.”

“[China will] make use of the advantage of its large market, expedite international cooperation, establish a new economic model with a higher level of opening, comprehensively raise the level of external opening, drive liberalisation and facilitation of trade and investment, and drive innovative trade growth and the joint establishment of high-quality growth of the Belt and Road Initiative.”

The session called for the “formation of a great nation market and firmly expanding the strategic keystone of internal demand,” as well as “expediting domestic and internal dual circulation, and comprehensively driving investment and expanding investment space.”

China plans to “establish a high-level socialist market economic system, fully make use of the decisive role of the market in resource allocation, better employ the role of government, and drive the improved integration of an effective market with capable government.”

This will in turn entail “improvements to macro-economic management, the establishment of a modern fiscal, taxation and financial system, the creation of a high-level market system, and accelerated changes to government functions.”

Innovation and tech will be key focal points for the 14th Five Year Plan, with the session proposing the establishment of a “Digital China” that is a “manufacturing great power and an Internet great power.”

“[China] must raise the modernisation level of industry chains and supply chains, develop strategic emerging industries, accelerate the development of modern service sectors, drive the creation of infrastructure, drive energy reforms and accelerate digitised growth.”

The session also calls for “driving green development and expediting the harmonious co-existence of humankind and nature…accelerating green, low-carbon growth, continuing to improve environmental quality and comprehensively raising the efficiency of resource usage.”

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