China”s ruling Communist Party has announced a renewed focus on enhancing self-reliance in science and technology, a strategic initiative that has gained importance due to stringent U.S. controls on semiconductor access and other advanced technologies. This declaration was made through state media following a four-day meeting where the draft of the party”s upcoming five-year development plan was approved.
The communique emphasized that China is facing “profound and complex” changes alongside rising uncertainties. Although it did not reference the trade conflict directly with U.S. President Donald Trump, it follows the recent escalation of tariffs aimed at encouraging manufacturers to relocate to the U.S. Such actions have intensified the economic pressures China faces, particularly as it navigates a prolonged downturn in its property sector while seeking to bolster domestic demand.
Despite these challenges, China has succeeded in maintaining growth in exports by diversifying its markets. Gary Ng, a senior economist at Natixis, noted that the government appears confident in its ability to address external pressures through domestic policy measures. “It means China will likely demand more from the U.S. to reach a deal, if one is to be reached,” he commented.
The released communique largely reiterates the policy direction established by Xi Jinping, who aims to position China as a leader in technology and global power, supported by a formidable military. Although the document provides a general overview of the 2026-2030 plan, detailed specifics are expected to emerge in the coming days, with the full plan to be ratified in March during the legislature”s annual meeting.
According to Xin Sun, a senior lecturer in Chinese and East Asian Business at King”s College London, the communique reflects a continuity of policy rather than significant changes. Comparatively, the current plan appears to deepen the focus on technological self-sufficiency, wealth redistribution, and a transition towards cleaner energy. China”s industrial policy has rapidly advanced its electric vehicle, wind, and solar industries, now shifting attention to fields like robotics and artificial intelligence.
The party”s statement indicated a commitment to accelerating a comprehensive green transformation in economic and social development. It also highlighted the ongoing efforts to stimulate domestic demand and consumer spending, a crucial aspect for sustaining economic growth. While it did not propose any major alterations to existing strategies, China has introduced various initiatives aimed at boosting consumption, including subsidies for consumer loans, childcare, and trade-in programs for electric vehicles and appliances.
Beijing remains optimistic, stating it is on a “solid foundation” to meet its official growth target of around 5% for the year, following an economic expansion of 4.8% in the third quarter.
Additionally, the party”s Central Committee meeting was marked by a low attendance of deputies, with 168 out of 205 members present. The meeting also proceeded with the appointment of a new vice chair for China”s Central Military Commission, following the expulsion of several senior military officials on corruption charges. Zhang Shengmin, previously a commission member and general in the People”s Liberation Army”s Rocket Force, has been appointed to this role, underscoring a continued emphasis on political loyalty and anti-corruption within the military modernization efforts led by Xi Jinping.
