China’s development blueprint to stabilize global economic recovery

Beijing: China has mapped out its social and economic development priorities for the coming five years and the decades beyond in a recently released development blueprint, and analysts believe the country’s consistency on policy will help stabilize and boost the global market prospects.

Instead of focusing on the pace of growth, China is striving to pursue high-quality development. Increasing people’s incomes, boosting domestic consumption, seeking to foster a world-class business environment and building an innovation-driven society, among others, are high on the agenda in China’s Outline of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives Through the Year 2035.

Over the next five years, the country will increase the disposable income per capita basically in line with its growth in gross domestic product, and continue expanding its middle-income group and tapping the market potential.

According to the plan, the country will boost and upgrade domestic consumption, reduce import tariffs and institutional costs, and expand imports of high-quality consumer goods, advanced technologies, crucial equipment and energy resources.

With the burgeoning demand and purchasing power, the country will become a huge market that is increasingly important for global goods.
China is a mega economy with long-term potential for high economic growth, said Zhang Liqun, a researcher with the Development Research Center of the State Council.

As an essential locomotive for world economic growth, the Chinese market will help pull the world economy out of difficulties, Zhang said.
In the first two months of 2021, China’s total goods imports and exports expanded 32.2 percent year on year to 5.44 trillion yuan (about 838.16 billion U.S. dollars), according to the General Administration of Customs (GAC).

The country’s imports grew 14.5 percent year on year, topping 2.38 trillion yuan during the period, GAC data shows.

Besides predictable surging demand, the country also showed prospects for a greater degree of opening-up. It will further improve its business environment to attract and better utilize foreign capital.

China will advance the opening of related businesses in the fields of telecommunications, the Internet, education, culture and medical care in an orderly manner, according to the new five-year plan.

The latest report from Fitch Ratings shows that China had seen a steady increase in high-tech foreign direct investment over the past decade. It attributes the increase to strong government support, foreign companies’ growing interest in China’s market sales opportunities, as well as an improving innovation ecosystem.

Fitch Ratings expects the research and development activities of the foreign-invested enterprises in China to increase as the country continues emphasizing and promoting innovation and improving intellectual-property protection to drive high-quality economic growth, as outlined in the new five-year plan.

Besides, the plan underlines continuous efforts to further improve the country’s business environment that is based on market principles and governed by the law and meets international standards.

With an improved and more predictable business environment in the coming five years, foreign-funded enterprises can make full use of the opportunities, explore new fields and achieve high-quality development along with China, said Obara Masamichi, vice president of the Japanese Chamber of Commerce and Industry in China.