China is set to intensify its focus on self-reliance in the fields of science and technology as part of its upcoming five-year economic plan, according to a recent announcement from the nation”s ruling Communist Party. This initiative is a response to escalating restrictions imposed by the United States on access to critical technologies, including semiconductors.
The declaration was made following a four-day meeting where a draft of the new development plan was approved. The state media reported that China is facing “profound and complex” changes, along with increasing uncertainty in the global landscape.
While the communique did not directly reference the ongoing trade tensions with U.S. President Donald Trump, it reflects a position of confidence from Xi Jinping“s government that it can effectively manage external challenges using domestic strategies. Gary Ng, a senior economist at Natixis, highlighted that this suggests China may seek more concessions from the U.S. for any potential agreements.
The statement primarily reiterated existing policy directions established by Xi Jinping, offering a broad overview of the 2026-2030 plan without delving into specifics. More comprehensive details are expected in the coming days, but the finalized plan will not be revealed until March, when legislative approval is anticipated.
Ng also noted that this new plan marks a deeper commitment to technological self-sufficiency, income redistribution, and a shift towards clean energy compared to the previous five-year agenda. The government aims to “accelerate the all-out green transformation of economic and social development,” as stated in the communique.
Moreover, the Chinese government plans to continue fostering domestic demand and consumption, a vital element for sustaining economic growth. While there were no indications of significant changes to this approach, various policies have already been implemented to stimulate consumption, including subsidies for consumer loans and childcare, alongside trade-in programs for electric vehicles and appliances.
As of this week, Beijing maintains that it is on a “solid foundation” to achieve its official growth target of around 5% for the year after recording a 4.8% growth in the third quarter. The recent meeting of the Central Committee was marked by a notably reduced number of attendees, suggesting extensive purges within the upper echelons of the Communist Party.
Overall, the announcement underscores China”s strategic pivot towards bolstering its technological capabilities in the face of international pressures, setting the stage for its economic ambitions in the coming years.
