Innovation in a new context

The third plenary session of the 20th Central Committee of the Communist Party of China, held from July 15-18 in Beijing with the participation of more than 370 members and alternate members of the Central Committee, is attracting great attention.

Beijing, the capital of China. (Source: vimiss.vn)

The conference is a particularly important event for the Chinese Communist Party, taking place against the backdrop of the world's second-largest economy facing challenges to growth and the impact of external geopolitical tensions.

Opportunities intertwined with challenges.

The Third Plenary Session of the Central Committee is usually held every five years, one year after the National Party Congress. However, this session was held nearly two years after the conclusion of the 20th National Party Congress in October 2022. The Third Plenary Session of the Central Committee is always closely linked to major policy decisions in China, playing a guiding role in the reform and opening-up process since 1978, and contributing to the country's explosive economic growth over the past four decades.

According to observers, this conference is taking place against the backdrop of a slowdown in the Chinese economy, but with significant potential and opportunities for a breakthrough. The far-reaching and long-term impact of the Covid-19 pandemic and geopolitical tensions have challenged the recovery and growth rate of the world's second-largest economy.

The Chinese economy is currently facing problems such as a real estate crisis, declining domestic consumer demand, and sluggish private investment, leading to high unemployment rates. Data released by the National Bureau of Statistics of China (NBS) on July 15th showed that the country's growth in the second quarter of this year reached only 4.7%, lower than the 5.3% growth in the first quarter of the same year.

Despite numerous challenges, the Chinese economy still has ample room for growth. In the short term, NBS data shows that the country's economy is still on track to achieve its target of 5% GDP growth in 2024. In the long term, new drivers of the Chinese economy have formed, accumulated, developed, and are now ready to break through.

Furthermore, the continuous expansion of industrial chains and consumer prospects in scale and depth; high-quality opening up and enhanced competitiveness; and the emergence of a development model in which new and old manufacturing industries are gradually transitioning are all positive factors for China's growth in the coming period.

Currently, China is also in a transitional phase between the old and new economic models. The old development model focused on investment and stimulating growth, leading to the rapid development of many low-quality industries, an imbalance between tax and fee reduction policies and financial issues, and the impact of the pandemic, causing economic growth to stagnate. According to analysts, China needs to shift to a development model that optimizes the industrial structure, develops endogenous economic drivers, and effectively controls investment.

Continue to promote modernization.

Previous Third Plenary Sessions of the Central Committee of the Communist Party of China have consistently prioritized reform and development. The 11th Third Plenary Session (1978) marked the beginning of China's reform and opening-up process. The 18th Third Plenary Session (2013) proposed deepening comprehensive reforms, emphasizing that "the market plays a decisive role in resource allocation." The 19th Third Plenary Session (2018) adopted a plan to deepen reforms of the Party and state structure.

In this context, the Third Plenary Session of the 20th Central Committee is expected to continue the reform and modernization process, adhering to two main goals: "promoting Chinese-style modernization" and "continuing to deepen comprehensive reforms," ​​developing new high-quality productive forces, reforming the financial system and state ownership, and innovating enterprises...

Compared to the Third Plenary Session of the 18th Central Committee, this session focuses on solutions aimed at promoting both breadth and depth. The proposed measures are expected to further boost technological innovation and improve the business environment, creating new growth drivers for China's sustainable high-quality development.

For global economic stability

High-quality reform and opening up, along with innovation, are the two main drivers of China's robust and sustainable development amidst unprecedented global changes. As the Chinese economy transitions from old growth drivers to new ones, comprehensive and far-reaching reforms are crucial to ensuring a stable and smooth transition.

This would also help restore confidence among people both domestically and internationally in China's economic development prospects, helping the country solidify its image as a major power and bring stability to the international community.

At the same time, as a key contributor to global growth, the decisions made by Chinese leaders at this conference will play a major role in countering anti-globalization trends and will be significant in promoting the development of the global economy.

The flexible reform and innovation policies introduced at this conference will continue to steer China's modernization process in the right direction, becoming a model for China's economic development in the new situation and contributing to the recovery and stabilization of the global economy in general.

Source: https://baoquocte.vn/hoi-nghi-trung-uong-3-khoa-xx-cua-trung-quoc-doi-moi-trong-boi-canh-moi-279254.html