More than just an outstanding step

XULIO RIOS

The third plenary session of the CPC Central Committee has come to an end. Of the final statement some come off notable conclusions.

Firstly, it defines the crucial period that China is going through in its development process. It is a critical moment because if good solutions are not found to resolve the problems on the agenda, it will be difficult to achieve the objective of national revitalization as set out by the leadership. There is, therefore, full awareness of the challenges, there is a thorough diagnosis that identifies them and a clear indication of where it is necessary to act without delay to resolve the structural dilemmas of the reform. Following the diagnosis, we will find the trajectory that the deepening of the reform will follow in the coming years.

The final statement suggests a sketch for the comprehensive reform and a layout of its perimeter. There are aspects that are notable: from the widening of the market to the commitment to innovation as a talisman, the intensification of social issues and structural reforms in the most diverse fields. All of this is indicative of the relevance of the measures that await us, of varying thickness, which will be complemented by an update of the institutional framework so that the systemic improvement of governance is instituted as a driving mechanism and does not hinder innovations.

The change in the economic system is the axis of this comprehensive deepening. This is a decisive key. The configuration of A better governed market with fewer restrictions and greater efficiency in the allocation of resources constitutes a practical challenge, but also a theoretical one to reconcile this process with the ideological sign of the political orientation that is very present when signaling the consolidation and development of the publicly owned economy. as an inalienable asset. There are no experiences on which China can draw and it will have to continue its efforts “crossing the river feeling every stone under its feet.”

In-depth reforms are identified as the driving force to advance along the path of growth at this stage. This will require enabling a more market-oriented business environment, capable of enhancing innovative dynamism and polishing the edges that hinder it.

In the next XV five-year plan, whose contents are advancing in preparation, details of scope must be finalized to continue taking steps in the direction agreed upon in this third plenary session.

Secondly, it is also worth highlighting the persistence in the approach to modernization on specifically Chinese bases, that is, with a reaffirmation of the principles, orientations and balances that take into account the peculiar nature of its process, always under the leadership of the CCP. , whose militancy requires the greatest tenacity and confidence.

Thirdly, an emphasis on the key nature of the drive to continue, aiming to transcend ideological and institutional barriers, without thereby affecting stability. The feeling of continuity must be complemented by the determination of the reformist push.

The roadmap thus drawn is based on a characterization of the main contradiction in this phase, that between social demand and unbalanced and inadequate development. Major reforms are required in numerous areas so that people's well-being accompanies the growth of wealth and prevails, bringing it closer to the largest possible number of homes. Improving the standard of living of the population and the standard of living in terms of housing and education, for example, are factors that stimulate inclusive development and offer a new vector to boost the economy.

In short, what is coming is a stage of more reform, comprehensive and profound, and more reaffirmation of the goals and objectives with that first horizon of 2035. They will not be easy reforms but the transformation is, without a doubt, possible. No one would have imagined recently, for example, that China could surpass Japan, as it did in 2023, as the largest automobile exporter in the world, or the position achieved in the global energy transition that today depends on solar panels, wind turbines or batteries produced in China.

A new address

This plan for the country's immediate future aims to establish a new direction for China based on high-quality development, affirming it as a great world-class industrial and technological power.

Expect an enormous task that will require attention to the broad outline but, above all, detailed management, spinning very finely in the measures to be adopted.

All of this will require maximum concentration from the authorities in managing internal challenges, although they will not be able to ignore a complex international situation either. This China cannot adopt a “China First” strategy and, on the contrary, needs to build bridges with other powers and countries to manage common challenges. The climate challenge, regional conflicts or even the curb on protectionist tendencies outline scenarios that must be faced as China does internally. And just as internally we must avoid being trapped in traditional ideological demarcations, externally it is important to explore overcoming the limits of use. It is time, for everyone, to think about solutions.

Xulio Ríos is an emeritus advisor to the China Policy Observatory.