China Prepares a Model to Break Free from the US
On Monday, the Communist Party of China, CPC, began the fifth plenary session of its nineteenth Central Committee in Beijing. The new five-year plan that will govern the patterns of the world’s second-most robust economy on the planet between 2021 and 2025.
It will be Xi Jinping’s second five-year plan as president. It will come at a time when the Chinese economy, according to official figures, is growing again. After the abrupt halt caused by the new coronavirus pandemic.
According to the Global Times, the official newspaper, this new plan, the fourteenth of the People’s Republic, will focus on developing a strategy of “dual circulation.”
In August, Xi outlined that it will have the national market as a base. Moreover, the strategy will try to make national and international markets “mutually reinforcing.”
Cao Heping, professor at the Peking University School of Economics, stated that external uncertainties amplify the global economic decline. As COVID-19 outbreaks occur in the United States and Europe, a ‘dual circulation’ strategy will be crucial for China in the next five years.
Likewise, Li Chang’an believes that the new five-year plan will emphasize achieving independence. Specifically true to in various sectors that Beijing considers key.
Li said technologies included in the plan relate to semiconductors, 5G and quantum computing, among others.
Analysts say that these changes in the growth model serve to prepare the Chinese giant to be free from the US. They expect a more qualitative than a quantitative approach to the new five-year plan of the Chinese Communist Party. Thus, putting a greater focus on structural issues.
The National People’s Congress of China refused to set a growth target for 2020
However, Li Chang’an predicts that the CCP is expected to set a growth target of between 4% and 5% of gross domestic product (GDP). This should occur over the next five years 2021-25. It would mean a significant reduction compared to the 6.5% marked in 2015 for the period of 2016-2020.
The meeting will last until Thursday. The draft of the five-year plan will be sent to the National People’s Congress for approval during its annual session, scheduled for early next year.
As a consequence of the new coronavirus pandemic, the ANP refused to set a growth target for 2020 in May. Thus, breaking a tradition of a quarter of a century.
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