Policy Update
China’s 14th Five Year Plan – What it says and what it means for UK businesses
China’s government has started to put some flesh on the bones of its next Five Year Plan, which is due to be finalized next spring. On November 3rd, it published the full proposal adopted at the Communist Party’s recent 5th Plenum both for the formulation of the 14th FYP and China’s long-term economic policy out to 2035.
Unusually, the proposal does not include specific economic growth targets. However, it does provide more details Chinese leadership’s principal areas of concern over the economy’s future path.
The key takeaway: The proposal confirms our initial assessment that the government’s dual circulation strategy – that is the strengthening of China’s own consumer market paired with the technological upgrading of its manufacturing sector - will be central to the 14th FYP.