Third Plenum of China 2024

The reading reaffirmed Beijing’s commitment to balancing development with ensuring national security, and otherwise revealed no policy changes.

„This statement [shows China’s leadership] „It’s continuing in the sense of avoiding the worst, but still not convinced that the policies that the U.S. has used are the best for China,” Liqian Ren, head of quantitative investing at Wisdom Tree, said in a phone interview.

“The government’s calculation is that technological advances will boost China’s ultimate confidence. [that the] „The US cannot use that technological disruption to contain China,” he said.

State media reported that the resolution was passed at a meeting of the Central Committee of the Communist Party of China.Deep reformTo Advance Chinese Modernization.”

Details of the resolution are expected to be released in the coming days.

„The result is in line with our expectations that the third plenum will be a continuation of existing policy changes,” Tianchen Xu, senior economist at China’s Economist Intelligence Unit, said in a note.

„I will highlight 'innovation and managed markets’ as the first two keywords in the Third Plenum,” Xu said. „Against the overwhelming backdrop of US-China competition, almost unexpectedly, innovation and productivity improvements are at the top of all priorities.”

Under the Biden administration, the United States has called China a rival and sought to limit Beijing’s access to advanced technology such as semiconductors in the name of ensuring national security.

Beijing, meanwhile, has pushed to develop high-tech domestically and tackle what it sees as risky over-expansion in the financial sector, particularly in real estate.

„We think any market-oriented reform will be measured and implemented in a way that does not compromise national security,” Xu said of the recent plenary meeting. „We still have high expectations for financial reform, although information on that topic has been very brief.”

China will strive to meet its full-year growth targets, the Reading report said on Thursday. In March the country announced a GDP target of around 5% for 2024.

Beijing also said it would „proactively” expand domestic demand, a term only used in a few recent high-level meetings.

„Expanding domestic demand appears to be mainly focused on short-term economic policies,” said Bruce Pang, chief economist and head of research for Greater China at JLL, as translated by CNBC in Chinese.

„Other areas seem to be more focused on the supply side than the demand side,” he said. However, he noted that efforts to further integrate rural and urban areas, improve living standards and fiscal and tax reforms will all help expand domestic demand.

Overall, the reading reaffirms what has been shared in other meetings and speeches, indicating implementation of principles.

The Central Committee of the ruling Communist Party of China, composed of more than 300 people, including full and alternate members, usually holds seven plenary sessions every five years.

The Third Plenum has traditionally focused on economic policy. In 1978, under the leadership of Deng Xiaoping, the meeting was officially announced Significant changes in a communist state such as China „Reform and Opening.”

Wisdom Tree’s Ren said this year’s plenum comes as China’s leaders face a relatively new situation: slow economic growth and Most of the business Comes from Non-Government OrganizationsEasier to control than state-owned enterprises.

„The thing is, if they come out with a tough policy and it doesn’t work,” he said, „that downside is very high for a government like China.”

— CNBC’s Sonia Heng contributed to this report.