Entering A New Stage of Development in the First Year of the 14th Five-Year Plan

By Lily Wang

On December 29， 2020， the CPC Central Committees proposals for the formulation of the 14th Five-Year Plan （2021-25） for National Economic and Social Development and the Long-Range Objectives Through the Year 2035 was approved by the fifth plenary session of the 19th Central Committee. This proposal document outlines Chinas new development blueprint for the next 5-15 years， showing Chinas confidence and determination in development.

The 14th Five-Year Plan marks the first of five years of Chinas new stage of building a modern socialist country and striving to achieve the second Centenary Goal.

Setting no specific growth target

Chinas economic， technological and comprehensive power has climbed to a new level in the past five years. The total GDP is nearing RMB 100 trillion and the GDP per capita has already surpassed USD 10，000. The major targets set by the 13th Five-Year Plan will be realized， and the key strategic missions and 165 key projects have already achieved great progress. The Chinese economy， as an economy with the worlds largest middle-class population and a domestic market of almost RMB 100 trillion， is booming and showing signs of great vitality. The peoples sense of achievement， happiness and security has also been greatly enhanced.

The sudden outbreak of the COVID-19 pandemic early last year has had a heavy impact on the Chinese economy. However， the Chinese gov- ernment has managed to gain control over the pandemic while growing its social economy by releasing a series of strong macro policies. The government work report last year set no specific target for GDP growth， mainly in consideration of the uncertainties regarding the development of the global pandemic， the trade and economic situation， and other factors.

The Chinese economic growth rate turned positive during Q3 of last year， making it the first country to start its recovery among the worlds major economic entities. This exemplifies the strong resilience and vitality of the Chinese economy.

Zhang Liqun， researcher of the Macro Economic Research Department of the Development Research Center of the State Council， wrote an article in which he explained that one of the most important issues that the 14th Five-Year Plan needed to consider is setting Chinese economic growth targets in a scientific way. It is important to judge the phase of development of the Chinese economy and accurately predict the potential growth rate， and then set a growth target and the development speed of the Chinese economy during the 14th Five-Year Plan period.

Wang Jun， a member of the academic committee of CCIEE （the China Center for International Economic Exchanges）， said that as the potential growth rate keep sliding and the global economy continues to face tremendous uncertainties due to the pandemic， it is very likely that the Chinese economy will slow down. Setting no specific GDP growth targets will help the whole of society implement the new development concept， and will shift the working priorities towards the promotion of high-quality development and the op- timization of the economic structure.

Wang Tao， chief economist of UBS China， said that it is estimated that the GDP growth target will be further lowered and the focus will be shifted to the economic balance and development quality. In a move away from the “above 6.5%” growth target set by the 13th Five-Year Plan， the 14th Five-Year Plan will probably set no specific growth target for the economy.

Comprehensively promoting high-quality development

High-quality development is the theme of the 14th Five-Year Plan， in which 12 working priorities have been laid out for social and economic development， and the reform and opening-up during the period of the 14th Five-Year Plan. These working priorities include technological innovation， industrial development， the domestic market， deep reform， rural revitalization， regional development， cultural construction， green development， opening-up， social construction， safe development and national defense building.

First， it is important to improve the quality of social development. Reforms on the quality， efficiency and driving force should be promoted， and the quality and efficiency of the supply system should be improved. It is also imperative to allow economic growth to depend more on innovation and to improve the contributions to economic growth by total factor productivity.

Second， it is important to remain focused on peoples welfare， and shift the focus of development from material objects to peoples needs in terms of their spirit， health， family， social roles， material belongings and environment.

The third is to increase the inclusiveness of development. Development at this time involves the participation of 1.4 billion people， and it is important to share the development results with all these people.

The fourth is to accumulate more social wealth. Development should lead to the accumulation of not just material wealth， but also wealth in terms of the ecology， culture， human resources and knowledge.

The fifth is to increase the resil- ience of development. It is important to improve the capabilities for coping with external risks and impact， in order to allow for flexible policy adjustment and achieve development targets.

Breakthrough reforms expected in key sectors

During the period covered by the 13th Five-Year Plan， supply-side structural reform has touched on the areas of the property system and the market for factors of production. This indicates that Chinas exploration and practice of a socialist economic system with Chinese characteristics have entered a key phase.

Zhang Liqun said that reforms during the 14th Five-Year Plan period will focus on the property system and the market for factors of development. It will further promote the change in mechanisms and innovation in the legal system to consolidate the reform results. This will be an important feature of reform and opening-up.

To be more specific， Shenwanhongyuan Securities chief economist Yang Chengzhang explained that during the 14th Five-Year Plan， it is important to focus on the reform priorities regarding land， human resources， capital， technology and data， in order to accelerate the flow of land factors between rural and urban areas， and increase the intensive use of land resources. It is also important to make human resources the first priority and improve the entrepreneurial market. Capital securitization should be promoted to optimize the allocation of capital factors of the whole of society， and the integration of technology property transaction market should be accelerated， in order to improve the infrastructure of the technology market. The basic system framework of the data transaction market should also be formulated， so as to advance the integration between the data market and the capital market.

During the 14th Five-Year Plan， the reform of state-owned enterprises should burst with new vitality. The enaction of the three-year action plan for the reform of state-owned enterprise signals the start of the next three years of action. Such a scheme will achieve big accomplishments in the formulation of a better modern corporate system and a state-owned capital supervision mechanism that focuses on the management of capital investment； and same will also achieve the optimization of the national economic layout and structural adjustments， and the improvement of the vitality and efficiency of state-owned enterprises.

Li Jin， chief researcher of the China Enterprise Research Institute， said that the three-year action plan for state-owned enterprise reform involves the implementation of the state-owned enterprises “1+N” reform framework. This framework is measurable， testable， evaluable and can be put into real practice. Such actions will be highly significant for empowering state-owned businesses， improving the vitality and efficiency of state-owned enterprises and building the new development pattern faster.

Huang Qunhui， Director of the Economic Research Institute of the Chinese Academy of Social Sciences， said that state-owned enterprise reforms are always the key to the reform of Chinas economic system. It is important to adopt a more feasible reform plan and measures to make breakthroughs in the 14th Five-Year Plan period. State-owned enterprises should grasp the direction of reform and focus on long-term system construction to create a modern corporate mechanism with Chinese characteristics and a state capital supervision system that focuses on capital management.

Benefiting global economic recovery

Foreign experts share the view that the 14th Five-Year Plan is far-sighted and clear in terms of its development goals. It draws up the new blueprint for building China into a modern socialist country， enhances peoples confidence in Chinas development prospects and will benefit the global economic recovery during the pandemic.

Alexei？Rodionov， Deputy Dean of the Eastern Faculty of the St. Petersburg State University， said that Chinas outstanding achievements during its 13th Five-Year Plan period have attracted the attention of the world. The Chinese voice and reputation can be heard more clearly on the global stage. The 14th Five-Year Plan and the Long-Range Objectives Through the Year 2035 have raised the proposal to make new progress in ecological civilization and reduce the emission of major pollutants. This highlights the strong commitment of the Chinese government to protecting the environment and coping with climate change.

Mao Xuxin， chief economist of the National Institute of Economic and Social Research， said that the 14th Five-year Plan and the Long-Range Objectives Through the Year 2035 have created a blueprint for the social and economic development of China in the next several years. Chinas economy has passed the stage of highspeed growth and has entered a new stage of high-quality development. Its economic structure has been improving， high-tech industries have made technological breakthroughs and there has been progress in the coordinated development between coastal and inland areas. Meanwhile， China has raised the concept of building new development patterns， which will further increase Chinas economic competitiveness and improve its status in the global supply chain.

Sykhoun Bounvilay， General Secretary of the Laos-China Friendship Association and an expert in international affairs， explained that technological independence is being taken as a national strategy for national development， and advocates green development to promote harmony between humans and nature. This shows that China attaches great importance to technology and environmental protection， which is conducive to longterm development.

Ronnie？Lins， Director of Brazils China Affairs Studies Center and an economist， said that during the 13th Five-Year Plan period， the lives of the Chinese people have been improving and the results of this poverty alleviation have been striking a chord the world over. The 14th Five-year Plan and the Long-Range Objectives Through the Year 2035 advocate sustainable and healthy economic development based on better quality and efficiency. This will further improve the quality of Chinese economic growth， and raise the innovation capabilities to promote the upgrading of industries. Furthermore， China has raised the concept of Belt and Road high-quality development， which will further advance the integrated development with countries along the Belt and Road region.

Chea？Munyrith， planning and Project Director of the Civil Society Alliance Forum in？Cambodia， said that the 14th Five-Year Plan and the Long-Range Objectives Through the Year 2035 clearly state that Chinas opening-up and reform will enter a new stage， which will bring about many more cooperation opportunities for the rest of the world. Cambodia and China have just signed a free trade agreement， which will create a broader market space for Cambodias agricultural sector. It is believed that more of Cambodias agricultural products will enter the Chinese market. Chinas further opening-up will also promote the economic recovery of Cambodia.