By LIN MINWANG
China’s annual “two sessions,” namely the National People’s Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC), have always drawn worldwide attention. The Fourth Session of the 12th NPC, held on March 5, 2016, will deliberate and approve the 13th Five-year Plan that determines China’s development over the next five years.
Since 1953, China has formulated and implemented a string of five-year development plans. The development planning of the 13th Five-year Plan has now been unveiled.
As the second largest economy and one of the world’s most open markets, China has achieved deep global economic integration. Its economic development indeed accounts for more than a quarter of world economic gains. In spite of downward pressure at home and abroad, China’s 2015 GDP growth of 6.9 percent was among the upper global ranks. Having contributed one third of global economic growth, China has become a main engine of world economy. Since China’s economic development entered the “new normal,” however, the international community has paid close attention to the question of whether or not China can maintain medium-to-high-speed economic growth over the next five years. The strategic focus, reform orientation, and development measures of the 13th Five-year Plan, therefore, are significant both to the country and the world.
Window on China’s Future
The global economy has still to emerge from the shadows of the economic crisis of 2008, which caused an economic downturn, and consequently pervasive pessimism, in major economies. There are persistent signs of weakness in the U.S. economy, in spite of early signs of recovery. Owing to Western sanctions and the slump in oil prices, Russia is also suffering a severe economic recession. Nor is the economic situation in European countries optimistic, its having given rise to various negative political trends, such as the U.K.’s possible withdrawal from the EU, power populism, and the refugee problem. Affected by the sharp slowdown in external demand, Japan’s exports and industrial manufactures have shrunk and domestic consumption is still sluggish. Many countries are doubtful that Japan can reduce its financial deficit. And on March 2 the Moody’s lowered the outlook on China’s government bond rating from stable to negative, so reflecting its misgivings about China’s economic growth.
Under this context, the 13th Five-year Plan offers the world a window through which to understand China’s future development. By implementing the five new development concepts – innovation, coordination, green development, opening up and sharing, the plan has set a target through which to maintain medium-to-high-speed economic growth, and develop middle and high-end industry, with innovation as the main development momentum. Meanwhile, it has propelled administrative reform, anti-corruption, rule of law, and poverty alleviation. Expanding opening-up, streamlining administration and institute decentralization, and state-owned enterprise reform will undoubtedly provide opportunities for foreign companies. The plan hence manifests China’s determination to conduct structural reform, and its supportive measures will bring rays of hope to the world economy.
Hitch a ride on China’s Development
China’s development is also an opportunity for world development. As a key facet of the plan, the Belt and Road Initiative will usher in a new pattern of China’s opening-up. Under the principle of joint discussions, construction, and shares, bilateral and multilateral cooperation will be improved. With enterprise as the main body, and through commercial cooperation, China will impel win-win pragmatic cooperation with the relevant countries and areas to build a new pattern linking the East and West. Meanwhile, China will boost construction of infrastructure connectivity, the international logistics corridor, and international economic cooperation corridor.
China will strengthen its mutual beneficial world cooperation through, to name but a few, Sino-American trans-Pacific cooperation, the “golden decade” of Sino-British relations, the “diamond decade” of Sino-ASEAN relations, and China-EU 2020 strategic agenda. Such cooperation will enable complementarity of one another’s advantages in order to realize win-win, joint development.
The plan makes clear China’s belief that “When successful, one tries to benefit others.” Heightening its comprehensive national strength will indeed render China capable and willing to offer more public products that are of global benefit.
Highlight Image as a Major Responsible Country
China has adopted a positive and productive diplomatic policy since the 18th National Congress of Communist Party of China (CPC). In the field of international finance, the country advocated establishment of the Asian Infrastructure Investment Bank and New Development Bank of BRICS. The International Monetary Fund has also approved inclusion of the RMB in its Special Drawing Rights basket as an international reserve currency. This has greatly enhanced the international standing of the RMB and infused new blood into global financial governance and reform. China actively participates in global issues such as UN peacekeeping operations, South-South cooperation, and global climate change, so giving play to its role as a major responsible country.
The five-year plan also formulates China’s diplomacy. Specifically, China will promote reforms and perfection of the international economic governance system, proactively guide the global economic agenda, and facilitate a fair, win-win international economic order. By strengthening international macroeconomic policy, the country will gear up a global economic balance, financial security, and stable economic growth. China will be proactive in rulemaking for frontiers such as the Internet, deep sea, polar regions, and aerospace. Meanwhile, China will propel multilateral trade negotiations, accelerate progress towards a balanced, win-win, and inclusive multilateral trading system, and expedite reform of the international monetary system and financial regulation. China is dedicated to forming a free, high-level trade network through free trade zones, regional comprehensive economic partnership agreements, and the Asia-Pacific Free Trade Area.
To sum up, the 13th Five-year Plan is a development outline for both China and the world economy which will not only guide world anticipation of China’s economic growth, but also shape the future of the world.
LIN MINWANG is an associate professor at the Institute of International Relations of China Foreign Affairs University, guest research fellow with the Chongyang Institute for Financial Studies at Renmin University of China, and research fellow with the Collaborative Innovation Center of South China Sea Studies of Nanjing University.
(Source: chinatoday.com.cn)