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China’s 20th Party Congress
OpinionComment
Yu Xiang
Yu Xiang

The View | How China plans to rise to its economic challenges on the path to modernisation

  • To ensure long-term prosperity, China plans to concentrate on innovation, and further reforms and opening up, while working to ensure a stable global order
  • For the nearer term, Beijing’s focus will be on stability with practical macro policies to solve current problems and anticipated challenges

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Xi Jinping delivers a report to the 20th party congress at the Great Hall of the People in Beijing on October 16. A key element of China’s economic success is adherence to party leadership. Photo: Xinhua
Yu Xiang
China’s 20th party congress has laid out a promising blueprint for the future of its economy. The aim is to walk its own path towards modernisation and “high-quality development”, by adhering to party leadership, emphasising innovation and focusing on macroeconomic policies to promote stability.
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China’s policies reverberate around the globe and its economic direction is the focus of much international attention – some of it optimistic; some, pessimistic. But China, which insists on reform and opening up, has continued to make economic progress. Its success can be summarised as follows.

First, adherence to the leadership of the Communist Party, which has provided a stable environment for China’s growth. Second, reform has broken down institutional constraints for the development of productive economic forces. Third, openness has allowed China to share its development with the world and enjoy positive feedback.

Judging from the congress’ plans for the nation’s economic and social development, these lessons will continue to be followed, ensuring China’s long-term stable development. But persistence does not mean inflexibility, and neither should we mechanically absorb foreign ideas.

China’s economy is worth more than 110 trillion yuan (US$15 trillion), accounting for more than 18 per cent of the world economy and firmly ranking as the second-largest. This economic heft allows China to conduct leading STEM research (in science, technology, engineering and mathematics) and withstand the headwinds of anti-globalisation and unilateralism.

More importantly, policymakers are squarely facing up to the problems emerging in China’s economic development. The 20th congress party report acknowledges “prominent issues and problems – some of which had been building for years and others which were just emerging”.

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