Reference News Network, October 30 report - According to the Bloomberg News website on October 28, at the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China held last week, participants reviewed this document. The document states that China will "form a more consumption-driven, internally demand-led, and endogenously growing economic development model."

The report said that this statement indicates the determination of Chinese policymakers to strongly boost domestic consumption.

Hu Weizhun, Chief Economist for Greater China at Macquarie Group, said that one of the highlights of this document is the proposal to increase the resident consumption rate. "This shows that in the long term, the position of consumption is continuously improving," he said.

According to the proposal for the next five-year plan starting from 2026, the government will increase public service spending in the next five years and strive to promote employment. At the same time, China will maintain "reasonable" growth in investment, which is another driving force for expanding domestic demand. The document says that China will "implement a series of major landmark projects."

The report said that the Five-Year Plan is a set of policies aimed at guiding the national economy and social development, and also reflects the priorities of the Chinese leadership.

Another report by the Singapore-based "Lianhe Zaobao" website on October 29 stated that the Chinese leadership has required the economic and social development over the next five years to maintain an "appropriate" pace, and proposed taking "unconventional measures" to push forward technological breakthroughs, as well as significantly increasing the resident consumption rate, in response to external challenges and increased downward pressure on the domestic economy and insufficient effective demand.

The report said that after the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China passed the "Proposal of the Central Committee of the Communist Party of China on Formulating the 15th Five-Year Plan for National Economic and Social Development" (hereinafter referred to as the "Proposal") on the 23rd, the full text of the "Proposal" was released on the 28th. The "Proposal" focuses on promoting high-quality development. When explaining the strengthening of innovation and the breakthrough of key core technologies, it mentions "taking unconventional measures." Xu Tianchen, Senior Analyst at the Economist Intelligence Unit, analyzed that the phrase "unconventional" implies that China may provide more incentives for relevant industries in the coming five years.

In response to current issues such as increased downward pressure on the domestic economy and insufficient effective demand, the "Proposal" proposes clear improvements in the resident consumption rate and the continued enhancement of the main driving force of economic growth through domestic demand.

The report said that according to data from the World Bank, the current share of household consumption in China's GDP is only around 40%, about 20 percentage points below the global average. (Translated by Hu Jing)

Original: https://www.toutiao.com/article/7566877841812390435/

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