Central Financial Work Conference indicates a greater focus on growth

Article by CNBW member CMG

Ahead of the Third Plenum, the Central Financial Work Conference indicates a greater focus on growth
With the end of year approaching, the Third Plenum of the 20th Central Committee is set to be held at a critical time for China’s economy. Traditionally, the Third Plenum is dedicated to discussions of economic and social development. This year’s Third Plenum is expected to focus on ‘Chinese style modernization’ (中国式现代化), ‘high-quality development’ (高质量发展) and ‘high-standard opening up’ (高水平对外开放) – key guiding principles coming out of the 20th Party Congress held in October 2022.

Compared to the previous two Third Plena under President Xi in 2013 and 2018 respectively, the external and internal environments have changed considerably. Soaring geopolitical tensions and the consequent restructuring of global supply chains have put a crimp in Chinese status as global factory. The lingering cost-of-living crisis in the west also put a dent in the revving Chinese export engine.

Domestically, the three-year zero-Covid policy and the crackdown on the property market starve local governments of funding to pay for necessary public services. A series of assaults on private sector squeezes the most dynamic part of the Chinese economy, as evidenced by record high youth unemployment rate, subdued private investment and lackluster domestic consumption.

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