China's ruling Communist Party is concluding a high-level meeting aimed at endorsing policies to enhance the country's technological capabilities and bolster national security. The closed-door plenary meeting of the party's Central Committee is expected to address strategies for achieving self-sufficient economic growth amidst increasing restrictions on access to Western advanced technology.
The meeting is closely watched by foreign investors and markets as China grapples with challenges such as a slowdown in the real estate sector and weak consumer confidence following the COVID-19 pandemic. Economic growth dipped to 4.7% in the second quarter of the year, with declining investments in real estate despite government efforts to stimulate housing purchases.
Recent reports indicate that Beijing will continue prioritizing investments in technology and encouraging companies to upgrade their capabilities in line with President Xi Jinping's vision of 'high-quality development.' The party aims to address institutional challenges and promote high-quality development to advance Chinese modernization.
While emphasizing openness to foreign investment, Chinese leaders are also tightening controls over companies and various aspects of society. Efforts to improve the business environment and promote 'common prosperity' are expected, along with measures to alleviate financial pressures on local governments burdened by debt.
The ongoing plenary session is the third of the 205-member party Central Committee, which began its five-year term in 2022. Historically, such sessions have been pivotal in shaping China's economic and policy landscape. While significant stimulus spending is unlikely to be announced immediately, the urgency to address China's economic challenges may lead to notable policy changes.
