China's top leaders are gathering in Beijing this week to decide on the country's key goals and aspirations for the rest of the decade. This meeting will form the basis of China's next Five Year Plan - the blueprint the world's second-largest economy will follow between 2026 and 2030.
The full plan won't be finalized until next year, but hints about its contents are expected soon. As Neil Thomas, a fellow in Chinese politics at the Asia Society Policy Institute, puts it, 'Five Year Plans spell out what China wants to achieve.' The decisions made at such meetings often shape global economics and politics.
Historically, China has undergone significant changes thanks to its Five Year Plans:
1981-84: 'Reform and Opening Up'
Launched under Deng Xiaoping, this plan marked a shift from strict state control to a mixed economy. The introduction of Special Economic Zones attracted foreign investment and turned China into a global economic powerhouse.
2011-15: 'Strategic Emerging Industries'
Recognizing a shift in global labor dynamics, China emphasized green technology and innovation to avoid the middle-income trap. This move has led to China dominating in electric vehicles and renewable energy.
2021-2025: 'High Quality Development'
Focused on enhancing China's technological prowess, the recent plans emphasize self-reliance in tech, spearheading developments in AI and chip-making as a response to global trade tensions.
The upcoming Five Year Plan will likely continue this trend, prioritizing technological independence and national pride as key drivers of policy. As the world watches, China's next steps could further shift the balance of global power.