5- year Plan of China 2021-2025

14^h China 5-year plan

 The Chinese 14th, 5-Year plan was drafted during the 5th plenum of the Central Committee which held from 26 to 29 October 2020. The draft is based on socio-economic issues that China wants to resolve by 2025 and wants to achieve some goals by 2035.

What is the 5-year plan?

The five-year plan is a series of economic and social initiatives that are decided and written by the Central Committee of China after every 5 years. This is a detailed outline of the country’s social and economic growth for the upcoming 5-years. Since 1953, the socio-economic goals of China were shaped in the 5-year plan.

After independence in 1949, the People's Republic of China faced an economic recovery period that lasted until 1952. The following year (1952) China first drafted its 5-year plan in 1953-57. After that 5-years plan has been in continuous implementation in China.

Did 5-year plan work?

The strategy which China adopts in 1952 to balance their socio-economic issue that works great for China. They didn’t only balance in the first 5-year plan but they also grow with time. China's plan to boost its heavy industry worked. Productions of different industrial goods like cement,  metals, etc were modernized under the 5-year plan. Many Chinese factories and industrialization working increased and provide the 9 to 10% annual growth to China in 1952-57 and today it increased rapidly. Also. China's main focus was on Agriculture and it encourages private farmers too. After the success of the first 5-year plan, China after every 5-year written its upcoming 5 years goals and through this which developed its economy, boost its agriculture and farming process, advanced its technology, and worked on its social issue.

14^th 5-year plan of China 2021-25

 The fifth plenum of the Chinese Communist Party, the 19^th Central Committee wrapped up in Beijing on Oct 29 after a 4-day meeting. According to the Deputy Director of the Office of Central Finance and Economic Commission Han Wenxiu stated that the 14^th 5- year plan of China was personally led by Xi Jinping through the multiple meetings of the politburo, and the drafted panel that he headed.

Vision

This year, a semi-annual gathering of China's top leaders had a special task because this year China faced too many things; the rivalry between China-USA, the COVID pandemic, and economic instability. The leaders and Xi Jinping finalizing the blueprint for the 14^th Five-Year Plan, which will be according to China's economic and social policy vision for the period from 2021-25. The final version of the plan won't be passed until the National People's Congress meets in early 2021.

Problems of Future:

Regardless of the fact of China's growth and advancement, still China faces some issues. These are:

1.  1.  Persistent (and growing) inequality between rural and urban residents

2.   2. Environmental l issues

3.   3. Lack of quality innovation.

4.   4. Energy

5.   5. Moderately developed economy

The next five-year plan aims to tackle those issues. Surprisingly, in the 5-year plan, China didn’t mention the GDP Target numbers.

No GDP target:

The Blueprints calls for “sustained and healthy” growth marked by “significantly improved quality and efficiency” during the next five year period.  Surprisingly, China is a country that is always an obsession with growth at all costs. For now the main seems to be on GDP per capita instead. The communique set the goal of raising GDP per capita to the level of a moderately developed country- a vague goal that leaves room for flexibility.

Property Rights Reforms:

There is also a mention of a “breakthrough” on property rights reform. Under the Chinese Communist System, all land is technically owned by the government – something that especially disadvantages rural landholders, who can see their property taken away at the wish of a local government, with little compensation and less chance of redress. According to their plan, it seems that they will be given more power to people.

Dual Circulation

There are also given references about the “dual circulation”, the term first time used by Xi Jinping in 2019. In this circle Domestic and International perspectives are included. The phrase of Global uncertainty of COVID-19 and the increasingly hostile economic competition with the United States aimed China to focus on the dual circulation. The phrase suggests a new inward focus for China's economy moving forward.

The “domestic cycle” means the internal production and consumption will be the main focus for the next 5-year plan, completed by the “International cycle” (foreign trade and investments). The communique thus includes numerous references to the need to boost domestic demand.

Technology and innovation:

 China gave the main focus on technology and innovation in the context of the “tech war” between China and the USA. There is a global pushback to China, clamor for preventing Chinese companies from access to key Western technologies. The technology didn’t give to Chinese companies/firms like Huawei so, China is therefore pressing even more urgently to develop its technology foundation.

The communique noted that innovation  occupies the “core position” in China's modernization drive, and pointed to “self-reliance in science and technology as the strategic support for national development.”

China will make “major breakthroughs in key core technologies” such as;

1.   1. Semiconductors

2.   2. Telecommunications

3.   3.   Big data

4.   4. Artificial intelligence

The above mention technology goals are for 2035 not for 2025.

The very ambitious 15-year blueprint

In the 15^th year blueprints, China made some changes, they mentioned:

“By 2035, China should have “basically achieved: its goal of becoming a modern socialist country, although the target date for definitely achieving the goal is 2049, the 100^th anniversary of the People Republic of China.”

But the question is why? Why China changes its date for achieving its goals                 

The first reason that 2018 the constitution of China amend that the person (president) came into power more than 2 times. It means that Xi Jing Ping became the president of China next time too. Xi has a mindset for the lifetime president that’s why he changed the duration of goals from 2049 to 2030.

China planned to become the No. 1 economy. 3 years ago, at the party’s last National Congress Xi declared that China “will realize socialist modernization by 2035,” which in communist terminology means overtaking the U.S to become the world's No. 1 economy. It has an important announcement because it meant China had brought forward its modernization target which had been around 2049, the 100^th anniversary of Communist Chinas founding.

The ambitious 2035 target was not publicized widely at the time it could further provoke the U.S president.

Eco-friendly environment:

For achieving the goal of an eco-friendly environment China plans to make all the new vehicle sold in 2035 “eco-friendly” of all the new vehicles sold that year in China, 50% are to be “new-energy” vehicles—electric, plug-in hybrid, or fuel cell-powered. The other half to be hybrids.

Major Global Power:

The CPC Communique said

“China would accelerate the modernization of the National Defense and the Military”

Which is the Xi vision of China's emergence as a major Global Power.

Biggest challenges:

There are some biggest challenges in front of china;

1.   Slowing economy:

2.   Global push back against China companies

3.   Global push back against Debt-Trap policy

4.   Domino effect of the massive opposition from the local people (Hong Kong)

Conclusion:

The 14^th, 5-year plan of China was drafted on Oct 29. The plan is based on the future problems which are china facing and their techniques which they adopt to overcome these. Some goals laid down which they want to achieve by 2023 but some wanted to achieve by 2035. They also amend the 15th-year blueprint. The goals that they wanted to achieve by 2049 now have to achieve by 2035. China is facing the problem of a slow economy and banned of their services and products but on the other hand, China works on the eco-friendly vehicles program and technological advancements. Current China as a % of World:

19% of the population, 16% global GDP, 12% of global trade, 28% of world economic growth, 75 of the world's arable land, 6% freshwater resources, and 12% mineral resources. Above all China envisioned overtaking the global economy and become the world's  No. 1 economy by 2035.

Reference

Chinese History: First Five-Year Plan (1953-57) (thoughtco.com)

Five-year plan: China moves to technology self-sufficiency | South China Morning Post (scmp.com)