The Communist Party of China will sign the solution to the country’s difficult conditions in a meeting today

BEIJING (AP) — China’s ruling Communist Party began a four-day meeting Monday expected to lay out a strategy for self-sustaining fiscal expansion in a year of heightened national security concerns. restriction on right of entry To the American era.

While the future meeting typically focuses on such long-term problems, business homeowners and traders may also be keen to see if the party announces any quick measures to deal with them. extended real estate recession And long illness has pressed Treatment after Covid-19 in China,

“There is a lot of uncertainty over policy direction in China, which is impacting consumer and investor confidence,” said Burt Hoffman, former Global Depot country director for China and a lecturer at the National University of Singapore. “This is the time when China needs to show its cards.”

financial Expansion slowed to 4.7% on an annual basis in the April to June quarter, the federal government reported on Monday.

Chinese leader Xi Jinping addressed a closed-door meeting on Monday, highlighting a draft of his upcoming decisions on “deepening reform and advancing Chinese modernization,” the official Xinhua news agency said.

Security was tightened in central Beijing, as is usual for major government occasions, with uniformed guards deployed at some subway stations and neighborhood-watch societies wearing red armbands deployed at local farms. Was.

The decision will send a message to local government officials and others about the date of coverage. The overall expectation is that it will verify the path set by Chinese leader Xi Jinping, although some expect some reforms to address concerns that growing government control over trade is stifling the country’s financial growth. .

What is the “Third Plenary Meeting” and what is its subject?

The 205-member Central Committee of the Communist Party is holding its third plenary session or the third full session of its five-year term which began in 2022. This year’s meeting was expected to be held in a serious year, but it was delayed schedule.

Traditionally, this third meeting has emerged as a meeting in which major financial and policy decisions are keenly anticipated, even if not every week. Analysts say the plenum often presents long-term directives that affect the financial system.

1. In 1978, the meeting suggested former leader Deng Xiaoping’s “reform and opening up”, a transition from a planned economy to a more market-based financial system that propelled China’s development in the coming decades.

2. In 1993, it recommended a “socialist market economy”, which sealed the victory of reformers fighting against the conservatives’ ultimatum regarding the risks of monetary liberalization.

3. In 2013, in Any other support for improvementIt states that the market will become the deciding force in the allocation of resources.

The drastic announcement, made a year after Xi became president, did not materialize. Within a few years, the party began to slide before starting anew in 2017, Hoffman said.

What issues are at stake?

Under Xi’s leadership, the Communist Party has decided that the birthday party should be at the center of efforts to pull China into the post-construction phase. China is the world’s second largest economy, but with a population of 1.4 billion, it is still a middle-income country.

The federal government has reined in China’s high-flying tech giants like fintech and e-commerce giant Alibaba. As the United States became more opposed, Xi pushed for Chinese companies and universities to struggle to manufacture high-end semiconductors and alternative generation, which is being prevented through US restrictions on exports to China. .

Advocates of isolated markets include the view that this government-led approach is discouraging the entrepreneurial spirit. Another concern is that the emerging importance of national security will weigh on fiscal expansion. federal government Has investigated Companies that transferred financial information out of the country, which appears to be a broad definition of a violation of regulation.

No significant changes are expected in the route and if one occurs it could be significant. In turn, the degree to which the Assembly recognizes concerns related to trade conditions and national security can only indicate whether some policy changes may occur.

What coverage changes will likely occur?

Additional backup for high-tech industries, which are considered essential for nationwide protection and date extension, are all positive along with similar business insurance policies.

However, the party is facing demands on alternative fronts. Alexander Davy, an analyst at the Mercator Institute for China Research in Germany, said he is watching how the government will balance two basic prerogatives: fiscal expansion and social fairness.

Local governments are deeply in debt, with some towns suspending transit products and services, resulting in them not having the money to run stock. In February peak year, Shangqiu city, home to more than 7 million society briefly sick bus stop sign,

“There may be a slight change, does the central government issue more loans to the local government so that they can run their services?” Davy mentioned. Industry closures can range between vast resources invested in science and technological manufacturing, agricultural land considered essential to national security, and social products and services.

Investors will be looking for signs that the government, given its better oversight of the economy, will take steps to create more favorable conditions for private companies.

nearest, there may be real estate market, In April, the federal government introduced insurance policies that signaled a change in approach by investing in the direct purchase of unsold houses.

“A remarkable turnaround in China’s asset stance in the first half,” Yifan Hu, chief investment officer for Better China at UBS Reserve, said in a comment. “This ongoing pressure underlines the need for additional easing, which we think will be pursued given the supportive policy tone.”

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Wu reported from Bangkok.

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This story has been corrected to say that China’s population is 1.4 billion, not 1.4 billion.