BEIJING (AP) — Two major economic plans announced in September 2018 annual general meeting Lawmakers in China’s legislature have outlined top priorities that will have a variety of implications for the global economy.
in government plan The first challenge toward 2026 is “building a strong domestic market.” Second, technological progress accelerates. But in the long term, planning for the next five years makes technological advances even more important.
The nuances highlight the government’s balancing act. Its overarching goal is the transformation from low-cost manufacturing to a technology-driven economy.
But the more pressing concern is dealing with a prolonged downturn that has eroded consumer and business confidence. China is such a large exporter That the choices we make will impact countries and jobs around the world.
The plan presented at the opening of the recent National People’s Congress provides a clue as to the government’s thinking. These are expected to be formally approved by the rubber-stamp parliament at the end of its eight-day session on Thursday.
Technology essential to China’s future
Analysts believe technological prowess remains a far more important goal for Chinese leader Xi Jinping and his vision of building the nation into a great power capable of competing with the United States on a wide range of issues from trade to trade. tension in taiwan.
State media reported that President Xi called on provincial delegations at the National People’s Congress to make new breakthroughs, make independent innovations and “capture the strategic high ground in science and technology.”
China has grown rapidly to become the world’s second-largest economy, raising it to the level of a middle-income country. To continue making progress, Mr. Xi has promoted policies to shift the economy toward high-value industries.
Forced enforcement with government support electric carFor example, it has transformed China into an emerging player in the global auto industry while aligning with national climate goals.
The five-year plan declares that it will “target the frontiers of science and technology,” accelerating development in fields such as artificial intelligence, quantum technology, biotechnology, and new energy.
Movement towards self-sufficiency
As technology evolves into the following areas, its push has expanded and morphed. Competition with the US with national security implications.
The United States restricted access The entry of Chinese companies into cutting-edge technologies, including the semiconductors that power AI. The rationale is that these parts could be used in weapons since the two countries are military rivals.
The Chinese government has responded by devoting resources to developing these parts in-house and designing ways to remain competitive with generic parts.
China must “fight for key core technologies,” the five-year plan says. Beyond AI, electric vehicles, and robotics, specific goals include advances in semiconductors, batteries, biomedicine, and 6G mobile networks.
The plan also promised to expand production of Chinese goods. Domestic passenger planedeveloped the C919 and made a breakthrough in the development of its own commercial jet engine. Last year, the United States temporarily suspended supplies of C919 engines supplied by Western countries as the trade war with China escalated.
rare earth As the United States and other countries seek to develop their own supplies of many high-technology products and critical components of military products, this sector, in which China is the world leader, has been highlighted as an area in which to remain competitive.
President Trump’s tariffs
Although China’s economy is cooling down domestically, it continues to grow overall due to increased exports. However, the tariffs imposed by US President Donald Trump have exposed the risks of becoming overly dependent on foreign markets.
China is done shift export But it faces challenges as a record trade surplus of nearly $1.2 trillion has raised concerns about threats to jobs in other countries’ factories and the economy as a whole.
This has spurred growth in consumer spending in China and reduced the economy’s dependence on external factors.
“Facing a complex and difficult international environment, we must remain committed to a strategy to expand domestic demand,” the annual economic plan states.
But analysts say that despite these strong words, the effort appears to be aimed at buoying the economy rather than reinvigorating it. annual plan set Growth target is 4.5% to 5% For 2026, there is room for a decline from last year’s 5% rise.
On the other hand, the government high tech advancements Analysts said that’s the case in manufacturing.
“Technology development and self-sufficiency will remain top priorities, and industrial policy will continue to be deployed as an essential tool to achieve them,” economists at Capital Economics said in a research note.
Similar subsidies for the wind and solar industries led to a manufacturing oversupply that was exported at rock-bottom prices and overwhelmed foreign competitors. As a result, the imbalance between China’s vast manufacturing capacity and weak domestic demand could become even greater, leading to further increases in exports.
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Chan Ho-him reported from Hong Kong.
