China concluded “Central Economic Work Conference (CEWC)” on 18th December 2020. Although, it is annual fixture but this year it became headline due to three specific reasons. Firstly, China is facing arduous challenges at international and domestic levels. Internationally, China is busy to combat the un-necessary trade war and furious opposition to China rise, especially in the fields of technology and innovation. The pandemic aggravated the situation and introduced many challenges at domestic front. China had to revise the GDP target, government had to cut taxes and fees of the 2.5 trillion-yuan, social retail shrunk by 5.9 percent and fiscal deficit limit crossed the threshold of 3 percent. Albeit, the challenges were enormous, but China was able to control the pandemic and put economy on expansion path. Consequently, China is only major economy with positive GDP growth in 2020.
Secondly, the CEWC has been granted status of curtain raiser to 14th Five-Year plan and Socialist Modernization vision (2035). The 14th Five-Year plan and Socialist Modernization vision (2035) have their own significance in the national context of China. The 14th Five-Year is dubbed as first step towards the China Rejuvenation and socialist modernization will provide the base to reach the destination of rejuvenation.
Thirdly, China is going through transformation. High quality growth, supply side restructuring, green production, innovation, technological advancement and dual circulation model are the most discussed themes among the top leadership to achieve the goal of transformation. Inthis context, China is putting enormous efforts and resources. It has accelerated the process of reforms and restructuring. President Xi’s speech in 2017 set new tune of policy reform. A new philosophy of development has been emerged from the economic Thoughts of President Xi.
The new philosophy of development has four pillars, 1) innovation, 2) coordination, 3) go green and 4) openness and sharing, Yang Weimin, deputy director of the Economic Affairs Committee of the Chinese People’s Political Consultative Conference National Committee Innovation and technological advancement got special attention at CEWC of 2020. President Xi himself is advocating and leading the path to ensure the success. He believes that the innovation and technological advancement are the critical instruments to transform, benefit from digital economy and future status of country at global level.
Besides, innovation and technological advancement will lay the foundation of high-quality growth. Resultantly, the high-quality growth will assist to achieve the dual objectives, 1) efficient and improved economic structure and 2) trickle down of prosperity and well-being. It is envisioned that the successful execution of high-quality growth and supported by innovation will pave the way for the success of dual circulation model. On one hand, it will ensure the restructuring and reform of supply side. On the other hand, the improved wellbeing of people will give a push to domestic demand and consumption which is the basic ingredient to actualize the dream of consumption led growth. Thus, experts believe that it will also help China to avoid the middle-income trap and ensure the march on the path of China Rejuvenation.
Since the times of Confucius and Tao, China believes in shared prosperity and prosperity for everyone. Hence, China is promoting openness and reforming its economy to create more opportunities for the world
Go green is another area which Communist Party of China (CPC) is pursuing for long. The drive got impetus after the 2007’s meeting of the Party. It is also very close to the heart of President Xi, as he described it as pre-requisite to achieve high quality growth and national rejuvenation. China has launched numerous initiatives under his leadership including building 10 national parks, drive for pollution free China, renewable energy and many others. In reality, green and intelligent production drive is a transformative initiative in nature which will compliment to high-quality growth. It has multifaceted implication ranging from better quality living to national security. Hence, President Xi considers it necessity of today and strength of tomorrow.
Openness and sharing are the driving elements of new philosophy of development and President Xi’s Thoughts. Since the times of Confucius and Tao, China believes in shared prosperity and prosperity for everyone. Hence, China is promoting openness and reforming its economy to create more opportunities for the world. To strengthen the openness China took a unique initiative by launching International Import Expo. In human history we cannot find any precedent when a country organized an import expo to benefit others.
President Xi equally emphasizes on the need of better coordination at all level, which is fourth pillar of new philosophy of development. He is advising all government and party affiliates to pay special attention to quality coordination. He tagged macroeconomic reforms and adjustments with better macro policy coordination. According to him the macro-adjustment would require “making discretionary choices and issuing corresponding prescriptions” and coordination will be key.
The experts and scholars believe that CEWC outcome will provide a blueprint of China’s strategy, commitments and future course of actions. it is usual practice that before launch of Five-Year plan China finalize decision in last CEWC. Besides, we will also get information about the three criticals namely, 1) GDP target, 2) fiscal budget and 3) policy direction. The decisions are most awaited, as world is going through tough times due to pandemic and shrinking economy. The choices of decision will impact the recovery of world economy. It is well accepted fact that the economic performance of China will determine the recovery, recovery pace and growth of world economy.Although, the final documents would be available in March 2021 but the statements by government officials are very encouraging.
In conclusion, we can say that CEWC 2020, will have determinantal and lasting impact on the China especially as it is happening just before the launch of 14th Five-Year Plan and Socialist Modernization Vision. The 14th Five-Year Plan and Socialist Modernization Vision will be out at a critical juncture of history of modern China, as transformation is going on in China, in all aspects. Besides, these will set the tune for the future and success of China Rejuvenation.
This article was originally published at: https://dailytimes.com.pk/708727/new-philosophy-of-development-of-china-and-cewc/
The opinions expressed in this article are the author's own and do not necessarily reflect the viewpoint or stance of SDPI.