A Focus on Reforms Amidst Challenges
The Chinese Communist Party's central committee will convene in July for its third plenum since the body's election in 2022. This crucial meeting will focus on reforms amidst "challenges" at home and complexities abroad.
Plenums are significant events on China's political calendar, requiring the attendance of all 205 central committee members and 171 alternate members, led by President Xi Jinping. These meetings typically occur seven times between party congresses, held every five years.
The upcoming third plenum will prioritize further deepening reforms and promoting China's modernization. This focus comes amidst a subdued economy, with the property sector, once a major contributor to GDP, facing significant challenges.
The economy continues to face numerous challenges, including weak "effective demand," pressure on enterprises, and risks in key areas. Additionally, domestic circulation remains sluggish, and the external environment has become increasingly complex, severe, and uncertain. Despite these challenges, China's economic foundation remains stable.
President Xi has emphasized the importance of reform and opening-up for China's continued progress. He has stated that China's reform will not pause, and its opening-up will not cease. A series of significant measures are being planned and implemented to comprehensively deepen reform.
Third plenums have historically focused on reforms, particularly since the end of the Cultural Revolution in the late 1970s. Some closed-door meetings have had a lasting and historical impact on the economy.
The third plenum in December 1978 under Deng Xiaoping initiated China's economic reforms, transforming the nation from a centrally planned backwater into a global economic powerhouse. In November 2013, the central committee vowed to let markets play a "decisive" role in allocating resources.
A third plenum in February 2018, held atypically early, urged the party to "unite closely" around the central committee with Xi at the "core" and proposed the removal of a constitutional clause limiting presidential service to two terms. This led to the removal of presidential term limits, allowing Xi to remain in office indefinitely.
The upcoming third plenum is expected to be a significant event, shaping China's economic and political landscape in the years to come.