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China economy
EconomyChina Economy

China urged to focus on domestic economy in next five-year plan to counter more hostile world

  • As China prepares its 14th five-year plan, researchers at one state-affiliated think tank predicted a more hostile global situation
  • Beijing urged to strengthen home-grown innovation and use vast domestic market to power economy post-coronavirus

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A think tank linked to China’s State Council has encouraged Beijing to focus on home-grown technology and its vast consumer market over the next five years. Photo: Xinhua
Frank Tang

China’s will face an increasingly hostile world over the next five years, meaning its policy plan should be focused on its vast domestic market, home-grown technological innovation and improving its citizens’ welfare, according to recommendations in a new paper.

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The report by the Chinese Academy of Social Sciences (CASS), a think tank affiliated with the State Council, foresees the next five years presenting “major changes unseen in a century” for China, as “the strategic game between superpowers has intensified, while international systems and orders are reshuffled”.

While the report does not mention the coronavirus specifically, its recommendations suggest that China should become more self-reliant in response to the pandemic. This view represents one side of a lively debate among policymakers and scholars in China, ahead of the next five-year plan, which will come into place next year.

Between 2021 and 2025, the globalised economy which helped China grow into an economic power will be radically different, the report said, meaning it must adapt if it is to continue to thrive.

“The disadvantages of economic globalisation have increasingly stood out. Populism has risen as the global economy weakens, while countries are divided as imbalances expand. The old multilateral [trading] system is under pressure,” read the paper, part of a wave of preliminary studies offering advice ahead of China’s 14th five-year plan, a blueprint for economic and social development.
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