Last week, lots of important people met for four days in Beijing to formulate the development plan for China for the next five years. A fun video has been doing the rounds to explain what huge deal it is.
This plan is the 13th Five Year Plan, and whilst every plan is very significant for the world’s most populous nation, the 13th is particularly important.
The plan comes at a time when China’s unprecedented economic growth is slowing, as it hopes to transition to a more sustainable, higher value, consumption-led economy. It is also the plan that will dovetail into the 100-year anniversary of the founding of the Communist Party of China in 2021, in which Beijing will move mountains to ensure they put on a good show.
Although the full 13th Five Year Plan won’t be released until next March, a communique was published after the meeting outlining the highlights of the plan. Anyone who has been following recent China policy closely won’t notice any major surprises, which isn’t a bad thing as it signals that Beijing is comfortable with how things are tracking.
The headline policies are lowering GDP targets to 6.5% until 2020, a faster pace of urbanisation, a continued innovation drive, further opening up of the economy and more anti-corruption measures – including adding golf and gluttony to the list of taboos. Probably the most talked about policy is the end of the One Child Policy, although we don’t believe this will have a significant impact on Chinese family sizes over the next five years.
Anyone doing business in China should pay close attention to the Five Year Plan as its policies will impact your market no matter what you’re selling or buying. We’ve put together a list of 13 things to watch in the 13th Five Year Plan, with our views on their impact. Click here to see it. Go to Page 2 to see this week’s China news and highlights.