appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Andrew Mullen

Global Impact is a weekly curated newsletter featuring a news topic originating in China with a significant macro impact for our newsreaders around the world. Sign up now!
The communique released summarising China’s third plenum – one of several gatherings of the Communist Party’s elite Central Committee – was seen as seeking a delicate balance between growth and security in the face of mounting uncertainties.
It was released at the end of the four-day session, typically an occasion for the party elite to hammer out long-term strategies.
Analysts said the outcome was in line with expectations as it provided a continuation of existing policy tweaks, although nothing that hinted at China heading towards a different direction.
“China’s leadership has promised to continue comprehensively deepening reform in a wide range of areas. But there are few signs that the just-concluded third plenum marks a major change in the direction of policymaking,” said Julian Evans-Pritchard, head of China economics at Capital Economics.
“And there still appears to be a tension between policies aimed at boosting economic security and expanding the supply side of the economy, and those aimed at giving market forces a greater role and rebalancing growth toward consumption.”


The statement did acknowledge, in a rare departure from a tradition of focusing on long-term goals, that China must “unwaveringly strive to finish this year’s growth targets”.
The meeting started the same day that China revealed its economy grew by 4.7 per cent year on year in the second quarter, which fell short of expectations.
In the first half of the year, China’s gross domestic product did grow by 5 per cent year on year, which is in line with the annual target of around 5 per cent Beijing had confirmed earlier this year.
“Though the third plenum primarily focuses on the medium and long-term direction, it reiterated the need to reach this year’s GDP growth target. With growth facing near-term challenges from softer domestic consumption momentum, more near-term policy support will be needed to push along growth,” said analysts at HSBC.
“For the longer-term path, domestic consumption, technology advancement and green development remain key strategic directions, while the plenum emphasised the role of the market mechanism in resource allocation and pledged to adhere to opening up.”


The communique asked party members to “faithfully follow the party leadership’s economic decisions, take active steps to stimulate domestic consumption, and build new momentum to drive exports and imports”.
It also vowed that China would continue to deepen reforms in all areas, including the economy, rural land, taxation, environmental protection, national security, fighting corruption, and cultural development.
The communique also called for the country to deepen supply-side reform, better integrate the digital economy into the real economy, upgrade modern infrastructure and build resilience in its industrial supply chain. It identified improving human capital and talent as the foundation to achieve these goals.
On the economic front, it promised to “better leverage the role of the market” but omitted a previously used phrase granting the market a “decisive role”, deviating from rhetoric used at the same gatherings in 2013 and 2018.
It did pledge “unswerving support and guidance” to the development of the “non-state sector” and said the government should ensure “all forms of ownership” in the economy could compete fairly and lawfully “on an equal footing”, a reference to China’s depressed private sector.


And a goal to target science education and expertise by launching a five-year skills upgrade was also included as part of a 2029 deadline to develop a “quality workforce” to help power a country and economy driven by innovation.
Elsewhere, it vowed to continue the fight against corruption, particularly in the military. The plenary session received and approved reports on the corruption cases of former defence minister Li Shangfu and two other generals.
The decision to remove former foreign minister Qin Gang as a member of the Central Committee was also confirmed via the communique.
Events at the third plenum will have been as eagerly watched overseas as they were within China, with the Post reporting that a group of heavyweight US executives will head to Beijing next week to obtain first-hand insight following the meeting.
But following the release of the communique, representatives of Western firms in China expressed disappointment over Beijing’s medium-to-long-term vision for the economy, saying the document lacked specific measures to improve the climate for business despite oft-repeated pledges of support.
60-Second Catch-up
China’s Communist Party sticks to painful reform playbook to target risks and growth.
Xi Jinping tells party to show ‘unwavering faith’ in reform plan.
US executives eye first-hand insight from economy-centric conclave.
Opinion: How China’s continued opening up sets country on path to better future.
Explainer: What do investment banks think of the Chinese Communist Party’s long-overdue third plenum?.
China’s Communist Party targets another PLA Rocket Force chief in corruption investigation.
Ex-Chinese FM Qin Gang loses seat at party top table but may escape punishment.
Explainer: 4 Chinese economists and academics advising Beijing on capital, employment and finance.
Deep dives

With little to go on after third plenum, China’s foreign firms left in limbo

Without a hint of major pro-market reform after the third plenum, Western firms in China appear in a similar position as they were before

Representatives of Western firms in China have expressed disappointment over Beijing’s medium-to-long-term vision for the economy, saying a document summarising the recently concluded third plenum lacks specific measures to improve the climate for business despite oft-repeated pledges of support.
Overseas enterprises in China will remain in a holding pattern before increasing their investments in the world’s second-largest economy, they said, waiting until a clearer picture emerges of what new reforms may be in store.
Read more.

After long-awaited third plenum, has China given its market a demotion?

Where earlier plenums declared a ‘decisive role’ for the market, that wording has been removed in this year’s communique, suggesting diminished importance

The role of the market in China’s economy has seemingly been downgraded by the country’s political leadership, with high-level members of the Communist Party making a small but significant adjustment following a meeting expected to set the tone for economic policy over the next several years.
“We must better leverage the role of the market, foster a fairer and more dynamic market environment, and make resource allocation as efficient and productive as possible,” read the summary communique issued after the conclusion on the third plenum on Thursday, as published by state news outlet Xinhua.
Read more.

China sets 2029 deadline to create science and tech ‘quality workforce’

Communique after four-day Central Committee gathering says ‘education, science and technology, and talent’ underpin Chinese modernisation

China is targeting science education and expertise, embarking on a five-year skills upgrade drive as it seeks to develop the critical technology needed to counter US-led containment efforts.
The Communist Party’s Central Committee announced on Thursday that the country had a 2029 deadline to develop a “quality workforce” to help power a country and economy driven by innovation.
Read more.

Stephen Roach on how Beijing can right its economy and the US’ China ‘blunder’

Economist Stephen Roach sees productivity and household consumption as critical for future growth, calls out US for green tech ‘hypocrisy’

Stephen Roach is a former chairman of Morgan Stanley Asia and also served as Morgan Stanley’s chief economist during his 30-year career at the investment bank. He was later a senior lecturer at Yale University’s School of Management and is now a senior research scholar at Yale Law School’s Paul Tsai China Centre. This interview first appeared in SCMP Plus. For other interviews in the Open Questions series, click here.
You have paid close attention to the third plenums in China and know their significance to China’s economic future. There have been years of calls for “structural reforms” as China aims to advance into high-quality growth. Looking back, what do you think have been the hits and misses in terms of economic reform?
Read more.

Arthur Kroeber: why China decoupling is unlikely, and talk of reform incomplete

Arthur Kroeber, founder of Gavekal Dragonomics, says China’s role in supply chains is unlikely to change and discussion of reform from abroad is often incomplete

Arthur Kroeber is founding partner of Gavekal Dragonomics, a China-focused economic research firm. Before founding Dragonomics in 2002, Kroeber worked for 15 years as a financial journalist and economic analyst. He is an adjunct professor at New York University’s Stern School of Business, a member of the Council on Foreign Relations and the National Committee on US-China Relations. His book, China’s Economy: What Everyone Needs to Know, was published in 2020. For other interviews in the Open Questions series, click here.
You have suggested that Beijing should roll out economic reforms to achieve sustainable economic growth. What specific reforms? What is your assessment of the sweeping reforms unveiled at the 18th Central Committee’s third plenum in 2013? What should we expect from the coming session?
Read more.
Global Impact is a weekly curated newsletter featuring a news topic originating in China with a significant macro impact for our newsreaders around the world.
Sign up now!


China could be the steady counterweight to Trump’s Pax Americana

China will rein in vicious competition at the root of its overcapacity

Alibaba raises US$5 billion from dual-currency bond issue, boosting Hong Kong’s hub status

There’s hope for China’s economy, as long as planners can ‘let go’

China’s third plenum

Promises abound of deepened reform, but what did China’s third plenum tell us?

Members of the Politburo Standing Committee attend the third plenary session of the 20th Communist Party of China Central Committee in Beijing. Photo: AP

Top leaders attend the third plenary session of the 20th Communist Party of China Central Committee in Beijing. Photo: AP

Photo: AP

Photo: Xinhua

Illustration: Victor Sanjinez Garcia

Illustration: Henry Wong

South China Sea clash raises stakes even higher as scepticism surrounds Manila talks

Protesters hold a Philippine flag and signs defending Philippine sovereignty in areas of the South China Sea. Photo: EPA-EFE

Philippine Coast Guard personnel filming a China Coast Guard vessel during a supply mission in disputed waters of the South China Sea. Photo: AFP

Photo: Reuters

Photo: Philippine Coast

Photo: AFP

Photo: EPA-EFE

China comes out swinging at ‘Summer Davos’, but talks up markets and US trade

Chinese Premier Li Qiang delivers his speech during the opening ceremony of the World Economic Forum Annual Meeting of the New Champions in Dalian. Photo: AFP

Chinese Premier Li Qiang attends a symposium for foreign business representatives at the 15th Annual Meeting of the New Champions in Dalian. Photo: Xinhua

Illustration: Lau Ka-kuen

Photo: Bloomberg

Photo: World Economic Forum

China eyes tech and economic goals for at third plenum, but few drastic changes expected

In this week’s issue of the Global Impact newsletter, we take a look ahead to China’s third plenum, which has been a landmark occasion since Deng Xiaoping’s groundbreaking reforms in 1978. Photo: Bloomberg

In this week’s issue of the Global Impact newsletter, we take a look ahead to China’s third plenum, which has been a landmark occasion since Deng Xiaoping’s groundbreaking reforms in 1978. Photo: Reuters

Illustration: Davies Christian Surya

Joe Biden forging ahead with efforts to counter China as Donald Trump, election loom large

US President Joe Biden with Chinese President Xi Jinping. Photo: EPA-EFE

US President Joe Biden with Chinese President President Xi Jinping at the Filoli Estate in Woodside, California. Photo: AP

Challenges remain for Narendra Modi despite securing third term as India’s prime minister

Indian Prime Minister Narendra Modi greets supporters as he arrives at Bharatiya Janata Party headquarters. Photo: AP

Indian Prime Minister Narendra Modi is garlanded by senior Bharatiya Janata Party leaders. Photo: AP

Photo: X/Damien Symon

Economy

China Economy

News

China

Politics

In this week’s issue of the Global Impact newsletter, we look back at the conclusion of China’s third plenum


In this week’s issue of the Global Impact newsletter, we look back at the conclusion of China’s third plenum.


China economy

China's economic recovery

China GDP

Global Impact

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}In this week’s issue of the Global Impact newsletter, we look back at the conclusion of China’s third plenum

In this week’s issue of the Global Impact newsletter, we look back at the conclusion of China’s third plenum