China to hold 5th plenum to set economic blueprint for next 5 years

Oct 26, 2015, 08:40 am

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Chinese President Xi Jinping is expected to emphasize the "new normal", a policy designed to shift from investment-led high growth to consumption-led stable growth, at the fifth plenary session./ Source from Xinhua News Agency

By Hong Soon-do, Beijing correspondent, AsiaToday - China will hold the Fifth Plenum of the 18th Central Committee of the Communist Party of China in Beijing over October 26-29 to discuss new policies. In general, Chinese leaders are expected to confirm the framework for the 13th five-year plan (FYP) of national development (2016-2020) based on its average economic growth target of 6.5 percent for the next five years. It is also expected t press the government' aggressive anti-corruption campaign, that Chinese President Xi Jinping has been promoting for the last three years.

According to October 25th reports of China's state media outlets including Xinhua News Agency, such outlook is closely related with the fact that China's economy is entering a "new normal" of slower growth. In other words, Chinese economic authorities led by Prime Minister Li Keqiang will turn their eyes towards quality of economy rather than quantity that has been pursuing so far. As a result, Chinese leaders are expected to present measures to change its existing manufacturing-focused industrial structure into high value-focused one, such as ICT and service industries, in the plenum. In particular, they are highly likely to make a decision on reforming state-owned oil companies, resolving steel industry oversupply issue, opening service industry, investing in renewable energy, and resolving regional imbalance and the gap between rich and poor.

China's leaders are also expected to push the "One Belt, One Road" (land and maritime silk roads) project forward with further measures. China's strong push for the establishment of the Asian Infrastructure Investment Bank (AIIB) and the settlement of the Regional Comprehensive Economic Partnership (RECP) are connected with such willingness.

At the Fifth Plenum, the leaders will also harden support to eradicate corruption of the government, military, and private companies that are harmful to the economic and social development. In addition, China's "military superpower" strategy, which has been accelerated following the military parade on September 3, will be one of the topics to be discussed. Furthermore, there may be personnel changes, where Xi Jinping's close associates could rise to the political forefront. This seems why foreign media outlets are already expecting that the upcoming meeting will be a place where Xi's power will be strengthened.

#China #5th plenum #economic blueprint #13th five-year plan #new normal 
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