The CCP’s Central Committee convened in Beijing for its third plenary session – the “third plenum” – from 15-18 July, and the communique from the session has been released.
Third plenums are significant because they lay out China’s policy direction for the next 5-10 years. In the past, they have been launchpads for major social and economic reforms. For example, the third plenum of the 11th CCP Central Committee in 1978 under Deng Xiaoping marked China’s initial steps towards economic reform and opening up.
As ever, the communique offers only the broad strokes of what was discussed at the session, with specific decisions and policy announcements likely to be announced over the next days and weeks.
Nevertheless, it offers an insight into the government’s priorities. The communique acknowledged the “grave and complex international environment and the arduous tasks of advancing reform and development and ensuring stability at home”.
As such, the main themes from the communique included:
The Big Picture: China will “deepen reform” and pursue “Chinese modernisation” (this term appears 22 times in the document). The country will finish building a “high-standard socialist market economy” by 2035.
Innovation: China plans to develop its innovative capabilities through “education, science & technology, and talent,” which are the foundation of modernisation. China will modernise its workforce and develop “new quality productive forces.”
National Security: China will strengthen its army and national defence through reform. National security is regarded as pivotal to China’s modernisation. Systems and mechanisms governing national security will be enhanced.
Green Development: China needs to cut carbon emissions, pursue green development, improve ecological conservation, reduce pollution, and respond to climate change. Harmony between humanity and nature is a crucial aspect of Chinese modernisation.
Market Reform: China will create a fairer and more dynamic market environment and continue to open up to the outside world. The public sector will be consolidated and developed, while the non-public (private) sector will be encouraged, supported, and guided. China will promote fair competition and legal protection for all forms of ownership.
Consumption: China will “strive to expand domestic demand.”
Fiscal Reform: It is necessary to deepen reform of China’s fiscal and taxation system.
Party Leadership: The Party’s leadership is central to China’s future reform and modernisation. The Party’s self-governance and reform are essential to steering social transformation.
Unusually, the communique specifically acknowledged China’s current economic situation (usually the outlook is medium to long-term), noting “we must remain firmly committed to accomplishing the goals for this year’s economic and social development.” The latest economic data showed China’s economy growing 4.7% in Q2 2024, down from 5.3% in Q1 2024 to the lowest since Q1 2023. This faltering has been partly attributed to China’s prolonged property crisis, and the communique specifically mentioned “defusing risks in real estate” (alongside risks in local government debt and small to medium-sized financial institutions) as a way to ensure stable development.
The statement said that the tasks it lays out should be completed by 2029 in time to mark the 80th anniversary of the People’s Republic of China.
Explore the outcome of the Third Plenum in more detail at Decoding the Third Plenum: What’s Next for China’s Economy?
CBBC will host a hybrid briefing on China’s Third Plenum on Friday, 26 July 2024.
During the one-hour session hosted at CBBC’s Shanghai office and also available online, speakers from the Economist Intelligence Unit (EIU) and Hutong Research will share insights on policy changes and important signals from China’s Third Plenum, as well as the implications for China’s economy.
Click here for more information and to register
