Explainer: What to watch at the fifth plenum of China's Communist Party
Added 10-27-20 02:04:02am EST - “Chinese President Xi Jinping and members of the Central Committee, the biggest of the ruling Communist Party's elite decision-making bodies, are meeting this week to formulate economic and social policy goals for the next five…” - News.yahoo.com
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BEIJING (Reuters) - Chinese President Xi Jinping and members of the Central Committee, the biggest of the ruling Communist Party's elite decision-making bodies, are meeting this week to formulate economic and social policy goals for the next five years.
Policy proposals will be discussed at the plenum, the fifth meeting of the Central Committee since the 2017 party congress, on Oct. 26-29. The final blueprint will be approved and released when the National People's Congress, or parliament, meets in its annual session next year.
China dropped its annual gross domestic product (GDP) growth target in 2020 for the first time since 2002 because of the uncertainty caused by COVID-19. The world's second-biggest economy is set to miss its 2016-2020 GDP target of more than 6.5%. Investors are watching to see whether China would set a looser growth target for the next five years, or none at all, to increase its policy options and flexibility.
Investors are expecting details on how Xi's "dual circulation" strategy would be implemented. First proposed by Xi in May, the strategy is for China to depend mainly on "domestic circulation" for its next phase of development - an internal cycle of production, distribution and consumption, supported by domestic technological innovation. This internal cycle is to be bolstered by external resources through "international circulation".
Market watchers are looking for possible fresh measures on boosting technological innovation, key to moving China up the global value chain and improving its self-sufficiency in vital technologies and know-how, especially with the United States' cutting supply of components to key Chinese tech firms such as Huawei Technologies Co [HWT.UL], threatening to disrupt China's supply chains. China is expected to step up policy support for high-tech industries such as semiconductor development, telecommunications (5G), big data and artificial intelligence.
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