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During a recent top Communist party meeting, China’s leaders highlighted various risks in areas such as the country’s declining property market, government debt, and financial institutions. They emphasized the need for tighter social controls to ensure stability.
The party’s Central Committee prioritized security on par with economic growth, addressing geopolitical risks and promoting China’s role in global governance. The meeting, known as the third plenum, outlined medium- to long-term policies.
The communiqué from the meeting emphasized the importance of coordinating development and security, implementing measures to address risks in key areas like real estate, local government debt, and small financial institutions. It also called for the establishment of a robust social security risk prevention network and the maintenance of social stability through state propaganda efforts.
The statement acknowledged China’s economic challenges, including a sluggish real estate sector and investor confidence issues following crackdowns on the private sector. While the plenum encouraged market development, there was no mention of boosting consumer demand.
Analysts noted the absence of details on reducing the dominance of state-owned enterprises in various sectors, which could be crowding out private businesses. The statement pledged to deepen fiscal and taxation reforms without specifying the changes needed for better central and local government financial balance.
Experts expressed concerns about the government’s strategy for managing the economy’s cyclical and structural problems, citing the lack of clarity in the plenum’s economic objectives. The statement highlighted Xi’s vision for a multipolar world and China’s ambition to become a “socialist modern power” by the mid-century.
The party also announced the acceptance of former foreign minister Qin Gang’s resignation from the Central Committee and the expulsion of individuals for serious violations. Former defence minister Li Shangfu was replaced following an anti-corruption probe into equipment procurement.
Additional reporting by Nian Liu, Tina Hu and Wenjie Ding in Beijing and Cheng Leng in Hong Kong