China outlines strategies for future economic expansion
On September 26, the Political Bureau of the Communist Party of China (CPC) Central Committee convened to evaluate the current economic landscape and strategize future economic initiatives, reaffirming their commitment to providing strong policy signals to the market.
TroibNews 
**Editor's note:** Ma Xiaobai serves as director and researcher at the Research Office of Multinational Enterprises, Research Institute of Enterprises, Development Research Center of the State Council, while Chen Gong is a PhD at the Education and Training Center for Officials and Entrepreneurs, State-owned Assets Supervision and Administration Commission of the State Council. The views expressed in this article are those of the authors and do not necessarily reflect the position of CN.
The resolution from the third plenary session of the 20th Central Committee of the Communist Party of China has clearly articulated the strategic objectives for comprehensively deepening reforms. Central to this initiative is the ambition to build a high-standard socialist market economy, emphasizing that the market will play a decisive role in resource allocation while the government will optimize its functioning.
On Thursday, the Political Bureau of the Central Committee of the CPC convened to analyze the current economic landscape and outline further economic initiatives, signaling robust policy support to the market. The meeting presented both expansionary measures and critical tasks aimed at maintaining stability. Three significant points emerged:
Firstly, it is crucial to fully grasp the favorable conditions surrounding China's economic and social growth. Despite facing real challenges—evidenced by a 4.7 percent GDP growth rate in the second quarter, which is slightly below the earlier quarter—it is important to acknowledge that demand from China’s 1.4 billion people is on the rise.
Moreover, industries are experiencing digital, intelligent, and green transformations, with ongoing technological innovations in areas such as artificial intelligence, cloud computing, and biomedicine. This environment is conducive to the emergence of new economic growth drivers.
In the first half of the year, the added value of high-tech manufacturing sectors grew by 8.7 percent year-on-year, outperforming the overall growth rate of all industries by 2.7 percentage points. Investment in high-tech sectors increased by 10.6 percent, exceeding overall investment growth by 6.7 percentage points.
The transition towards “new” and “green” industries has become more pronounced. Notably, amid a complicated international climate and sluggish global economic momentum, China’s total import and export volume for goods reached 21.17 trillion yuan in the first half of the year, marking a 6.1 percent year-on-year increase and surpassing the monumental threshold of 21 trillion yuan during this timeframe for the first time.
Consequently, the meeting confidently asserted, "China’s favorable conditions such as its economic fundamentals, large market, strong economic resilience, and vast potential, remain unchanged."
Secondly, maintaining confidence in the continual improvement of the Chinese economy is essential. The meeting underscored a more proactive stance aimed at incrementally enhancing initiatives in fiscal policy, monetary policy, real estate, capital markets, corporate support, and public welfare.
Of particular note was the directive to "stabilize the real estate market," enhance counter-cyclical adjustments, and invigorate the capital market. Initiatives such as driving mid- and long-term capital inflows represent concrete steps and reform actions intended to stabilize expectations and boost confidence.
Accompanied by a set of financial policies introduced on September 24, the market received a strong indication of upcoming efforts to promote economic growth. More incremental measures and positive signals are anticipated, with the goal of maintaining approximately 5 percent GDP growth this year likely remaining on track.
Thirdly, fostering a premier business environment characterized by market orientation, rule of law, and international standards is imperative. The private economy has proven indispensable for job creation, innovation, and tax revenue enhancement, and the principle of the rule of law is foundational to a robust business environment.
The meeting highlighted that "we must introduce laws to promote the private economy and foster a favorable environment for the development of the non-public sector,” signaling a commitment to solidifying legal measures that accelerate private sector growth. This initiative is expected to reinvigorate the private sector and stimulate innovation, thereby facilitating high-quality economic progress.
In terms of legal standardization regarding government operations, the meeting clearly stated, “we need to help businesses overcome difficulties and further standardize law enforcement and regulatory actions involving enterprises."
Recent statistics from the Ministry of Finance indicate that from January to August this year, tax revenue declined by 5.3 percent year-on-year, although non-tax revenue experienced a notable upswing. Excessive non-tax revenue burdens small and medium-sized businesses. Therefore, this meeting reiterated the importance of standardizing law enforcement processes affecting enterprises, aiming to bolster support and confidence for all market players to operate within legal parameters and navigate challenging circumstances.
Additionally, regarding the continuous optimization of the international business landscape, the National Development and Reform Commission announced in early September that all restrictions on foreign investment in the manufacturing sector have been lifted. This meeting reaffirmed the commitment to intensifying efforts to attract foreign investment and systematically reform the foreign investment access framework, representing significant steps towards institutional openness.
These initiatives send strong messages affirming China’s steadfast commitment to high-standard opening up, reflecting a determination to facilitate investment liberalization and cooperation on a global scale.
James del Carmen for TROIB News
The resolution from the third plenary session of the 20th Central Committee of the Communist Party of China has clearly articulated the strategic objectives for comprehensively deepening reforms. Central to this initiative is the ambition to build a high-standard socialist market economy, emphasizing that the market will play a decisive role in resource allocation while the government will optimize its functioning.
On Thursday, the Political Bureau of the Central Committee of the CPC convened to analyze the current economic landscape and outline further economic initiatives, signaling robust policy support to the market. The meeting presented both expansionary measures and critical tasks aimed at maintaining stability. Three significant points emerged:
Firstly, it is crucial to fully grasp the favorable conditions surrounding China's economic and social growth. Despite facing real challenges—evidenced by a 4.7 percent GDP growth rate in the second quarter, which is slightly below the earlier quarter—it is important to acknowledge that demand from China’s 1.4 billion people is on the rise.
Moreover, industries are experiencing digital, intelligent, and green transformations, with ongoing technological innovations in areas such as artificial intelligence, cloud computing, and biomedicine. This environment is conducive to the emergence of new economic growth drivers.
In the first half of the year, the added value of high-tech manufacturing sectors grew by 8.7 percent year-on-year, outperforming the overall growth rate of all industries by 2.7 percentage points. Investment in high-tech sectors increased by 10.6 percent, exceeding overall investment growth by 6.7 percentage points.
The transition towards “new” and “green” industries has become more pronounced. Notably, amid a complicated international climate and sluggish global economic momentum, China’s total import and export volume for goods reached 21.17 trillion yuan in the first half of the year, marking a 6.1 percent year-on-year increase and surpassing the monumental threshold of 21 trillion yuan during this timeframe for the first time.
Consequently, the meeting confidently asserted, "China’s favorable conditions such as its economic fundamentals, large market, strong economic resilience, and vast potential, remain unchanged."
Secondly, maintaining confidence in the continual improvement of the Chinese economy is essential. The meeting underscored a more proactive stance aimed at incrementally enhancing initiatives in fiscal policy, monetary policy, real estate, capital markets, corporate support, and public welfare.
Of particular note was the directive to "stabilize the real estate market," enhance counter-cyclical adjustments, and invigorate the capital market. Initiatives such as driving mid- and long-term capital inflows represent concrete steps and reform actions intended to stabilize expectations and boost confidence.
Accompanied by a set of financial policies introduced on September 24, the market received a strong indication of upcoming efforts to promote economic growth. More incremental measures and positive signals are anticipated, with the goal of maintaining approximately 5 percent GDP growth this year likely remaining on track.
Thirdly, fostering a premier business environment characterized by market orientation, rule of law, and international standards is imperative. The private economy has proven indispensable for job creation, innovation, and tax revenue enhancement, and the principle of the rule of law is foundational to a robust business environment.
The meeting highlighted that "we must introduce laws to promote the private economy and foster a favorable environment for the development of the non-public sector,” signaling a commitment to solidifying legal measures that accelerate private sector growth. This initiative is expected to reinvigorate the private sector and stimulate innovation, thereby facilitating high-quality economic progress.
In terms of legal standardization regarding government operations, the meeting clearly stated, “we need to help businesses overcome difficulties and further standardize law enforcement and regulatory actions involving enterprises."
Recent statistics from the Ministry of Finance indicate that from January to August this year, tax revenue declined by 5.3 percent year-on-year, although non-tax revenue experienced a notable upswing. Excessive non-tax revenue burdens small and medium-sized businesses. Therefore, this meeting reiterated the importance of standardizing law enforcement processes affecting enterprises, aiming to bolster support and confidence for all market players to operate within legal parameters and navigate challenging circumstances.
Additionally, regarding the continuous optimization of the international business landscape, the National Development and Reform Commission announced in early September that all restrictions on foreign investment in the manufacturing sector have been lifted. This meeting reaffirmed the commitment to intensifying efforts to attract foreign investment and systematically reform the foreign investment access framework, representing significant steps towards institutional openness.
These initiatives send strong messages affirming China’s steadfast commitment to high-standard opening up, reflecting a determination to facilitate investment liberalization and cooperation on a global scale.
James del Carmen for TROIB News
