China’s Five-Year Plans are a series of social and economic development initiatives. The economy was shaped by the Communist Party of China (CCP) through the plenary sessions of the Central Committee and national congresses. The party plays a leading role in establishing the foundations and principles of Chinese socialism, mapping strategies for economic development, setting growth targets, and launching reforms.
China’s 13th Five-Year Plan (guideline)
On October 29th, 2015 CCP approved the 13th Five-Year Plan of China (2016-2020). This Plan is seen as critical in tiding the country through a transition period, and is believed to create more opportunities for sustainable growth within and beyond its borders.
China’s economy is now shifting its focus to consumption and service industries from heavy polluting industries and manufacturing via complex reforms.
A natural result of this transition is reflected in a lower yet sustainable and balanced growth. Innovation, harmonization, green, openness and sharing are the five development conceptual cornerstones proposed by President Xi Jinping for China to secure resilient and sustainable growth.
- Innovation: Move up in the value chain by abandoning old heavy industry and building up bases of modern information-intensive infrastructure
- Harmonization: Bridge the welfare gaps between countryside and cities by distributing and managing resources more efficiently
- Green: Develop an environmental technology industry, as well as ecological living and ecological culture
- Openness: Deeper participation in supranational power structures, more international co-operation
- Sharing: Encourage people of China to share the fruits of economic growth to bridge the existing welfare gaps
Key words (currently under hot discussions) – a selection
1. “Made in China 2025” aims to address four worrying trends in the current situation:
- (Nationally) vital technologies lack a (domestic) core platform
- Chinese industrial products are perceived internationally as inferior quality
- Domestic industrial competition is fierce due to overly homogeneous structure
- Poor conversion of academic research results to practical application
2. Manufacturer of advanced and quality products
3. Supply-side structural reform: Cutting over-capacity, destocking, deleveraging, reducing costs and identifying growth areas
4. A beautiful China where the sky is blue, the land is green, and the water runs clear
5. Inclusive and green finance
The emphasis is on quality, supply-side structural reform and green development. China calls for an upgrading in industrial sector for higher quality and higher added values through innovation, at the same time more eco-friendly, more sustainable, more “green”. This shows huge potential for companies that have been investing heavily in quality products, environment and green technologies to get more competitive advantage in the Chinese market.
China is facing serious challenges in urbanization, water utilization, agriculture, air pollution, sustainable transportation, etc. All these challenges open great opportunities for companies to come up with innovative solutions.