China’s President, Xi Jinping, recently hosted a dialogue with key business and economic figures at a symposium held in Jinan, Shandong Province. This was the first such gathering since the end of 2020, and was graced by key players including Wang Huning, Chair of the Chinese People’s Political Consultative Conference, and Cai Qi, Head of the General Office of the Central Committee.
Discussions at the symposium covered envisaging the economic outlook for 2021, and key strategic approaches to ensuring stability while simultaneously promoting reform and innovation. In an era of complex global politics and economic scenarios, Xi stressed the need for China to improve its self-sufficiency in technology and innovation.
The meeting was held in Shandong, China’s third-largest provincial economy. It was attended by representatives of State-owned enterprises, private corporations, and multinational entities. Attendees included globally recognized figures like Isabel Ge Mahe from Apple and Yin Zheng from Schneider Electric China, demonstrating China’s appreciation of international input in shaping its economic policies.
The dialogue served as a precursor to the Communist Party’s Central Committee’s Third Plenum in July.
Xi Jinping’s economic dialogue overview
It informed the direction of national policy, particularly around areas such as electric systems enhancements, technological incorporation for industrial progress, and macroeconomic governance model strengthening.
Neo-Keynesian economists were included in the dialogue, indicating a potential shift towards a more assertive approach in China’s economic governance. This marks a possible departure from traditional macroeconomic policy favouring a more interventionist technique, which might lead to increased public spending, deficit levels growth, and potential impacts on China’s domestic economic stability.
Xi Jinping highlighted the need for comprehensive and coordinated reform. He underscored the significance of addressing public necessities and improving living standards through targeted and responsive governmental measures. Immediate strategies in sectors like employment, income growth, education, healthcare, and housing are predicted to be implemented to respond to public needs and build approval.
Possible reforms in the run-up to the upcoming Plenum may include adjustments to China’s household registration mechanisms, an updated tax revenue sharing construct, and regulations regarding the management of state-owned enterprises. Such changes could transform the functioning of China’s society and economy.
Concluding his address, Xi reassured attendees that the Committee would closely consider their insights when shaping future economic policies. This commitment to rigorous research and extensive consultation demonstrates the Committee’s dedication to crafting effective and sustainable economic strategies.
