China is seeking to maintain a certain rate of growth and expand consumption’s share of the economy as authorities draft the next five-year development blueprint, a senior official said.
The aim is to achieve high-quality growth where the expansion is kept within a “reasonable range” and the share of household consumption “rises significantly,” Han Wenxiu (韓文秀), deputy director in charge of daily work at the Office of the Central Financial and Economic Affairs Commission, said at a briefing yesterday.
The briefing followed a four-day conclave of Chinese Communist Party (CCP) elites to approve the outlines for drafting China’s economic plan for next year to 2030. Beijing is signaling a determination to deepen its manufacturing and technology push as it looks to maintain competitive advantages. Boosting the domestic market has become also more urgent to maintain sustainable growth amid rising global trade protectionism.
Photo: Bloomberg
In a communique released on Thursday, the CCP Central Committee vowed to build a modern industrial system, and called for the beefing up of technology self-reliance and strength. That reversed the order of the two issues seen in a similar document five years ago, suggesting a shift toward the broader industrial base in the economy as Beijing gets concerned about growth deceleration and investment swarming into new sectors, causing waste and excess capacity.
The communique repeated a goal that implies an average annual target of about 4.5 percent growth over the next decade, according to an estimate by Macquarie Group.
China’s economy is on track to have grown an average 5.5 percent annually during the five-year period ending this year, according to previous government estimates.
Chinese National Reform and Development Commission Chairman Zheng Shanjie (鄭珊潔) ranked “optimizing and upgrading traditional industries” first among four priorities in building a modern industrial system.
The nation needs to consolidate and improve the global competitiveness of its petrochemical, machinery and shipping industries, and foster the advanced manufacturing cluster, Zheng said at the briefing.
The drive is expected to generate about 10 trillion yuan (US$1.4 trillion) in new market opportunities in the next five years, he said.
Emerging and future industries would be expanded, with new energy, new materials, space and aviation, and the low-altitude economy being targeted as “pillars,” Zheng said.
He identified sectors such as quantum technology, biomanufacturing, hydrogen and nuclear future energy, brain computer interfaces, embodied intelligence and sixth-generation mobile communications as where new growth drivers would be fostered.
There is “huge potential” for China to expand the services industry, Zheng said.
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