Beijing Sets Industrial Power and Tech Independence as Top Priorities
China’s Communist Party has unveiled its new five-year roadmap, putting strong emphasis on strengthening advanced manufacturing and achieving technological self-sufficiency to counter growing tensions with the United States. During the four-day leadership meeting (plenum), senior officials vowed to build a modern industrial system and reduce reliance on foreign technology.
Leadership Shake-Up Amid Military Corruption Crackdown
The plenum also brought significant political changes, with 11 Central Committee members replaced the largest reshuffle since 2017. This move comes during an ongoing purge targeting corruption within the military ranks.
Domestic Demand Promised, But Manufacturing Still Dominates
Although leaders promised to boost domestic consumption and improve public welfare, the official statement made it clear that manufacturing and technological advancement remain the core of China’s economic strategy. Economists say this shows a clear preference for industrial power over consumer driven growth.
Julian Evans-Pritchard of Capital Economics noted that while China talks about boosting consumption, its policies still prioritize manufacturing for national strength and security.
Economy Faces Slowdown and Rising Debt
China’s economy has slowed to its weakest pace in a year, with domestic demand remaining fragile. As a result, the country continues to rely heavily on exports, despite U.S. tariffs. Beijing’s industrial-focused policies have also led to rising debt now nearly three times the size of its economy alongside overcapacity and low inflation.
Dan Wang from Eurasia Group warned that the combination of high debt and low inflation makes the economic model “very fragile.”
Social Promises but Few Details
Officials mentioned plans to “invest in people,” which may include improving rural pensions and medical insurance. However, experts like Tianchen Xu from the Economist Intelligence Unit say the government has yet to provide clear implementation plans.
Global Concerns Over China’s Industrial Power
China’s rapid technological and industrial progress has raised alarms in the U.S. and Europe. Western nations are now pushing to rebuild their manufacturing sectors and strengthen defense capabilities, especially amid Russia’s invasion of Ukraine and increased tensions in the South China Sea and Taiwan Strait.
China is doubling down on industry and technology to secure its global position, even as its economy slows and debt rises. While promises were made to improve citizens’ welfare, the real focus remains clear: manufacturing strength first, consumption later.
