Plenum marks milestone in further reform

Reform, opening-up to reach new heights

We live in a world of interdependence where the destinies of nations are intertwined. The future of China is linked to that of the world, and vice versa. In this context, it is not surprising that the just-concluded third plenary session of the 20th Central Committee of the Communist Party of China in Beijing was closely watched.

First, the meeting reaffirmed that China remains committed to deepening reform and opening-up initiated 46 years ago. It also focused on the promotion of Chinese modernization, the fundamental idea that China is inventing its own modernity.

Despite the evolution of the world, including changes in certain Western countries' policies toward China, Beijing welcomes foreign participation in its transformation while viewing the world as a horizon for its enterprises, culture and citizens. In other words, China is neither looking for decoupling nor de-globalization. It looks with confidence at a world of interdependence and has called for building a community with a shared future.

Second, China continues the transition of its economy from quantitative growth to high-quality development. Breakthroughs in promoting high-quality economic development were important objectives stated in the report to the 20th National Congress of the CPC in October 2022. This means economic activities must aim for sustainability and innovation. Such a transition takes time, induces changes in practices and mindset, but is necessary to maintain environmental balance and create long-term economic value.

Observers will interpret the conclusions of the third plenum differently. I look at it as a response to those who talk about the idea of "Peak China". The narrative that presents the Chinese economy as having already peaked with per capita GDP just above $13,000 is simply misleading. If US strategists were genuinely convinced of the "Peak China" theory, they would be far less preoccupied with China's increasing power.

To conceptualize the dynamics at play in the world's second-largest economy, "transition China" is a more accurate, intellectual framework than "Peak China". A corollary of the shift from quantitative to qualitative growth is that Chinese enterprises will become increasingly competitive and innovative. Consequently, they will alter the nature of competition with their foreign peers.

During his inspection tour of Heilongjiang province in September 2023, President Xi Jinping proposed the concept of new quality productive forces as a crucial component of comprehensive high-quality development. This initiative is expected to directly influence the productivity of Chinese enterprises and consequently enhance their competitiveness.

China, which has reshaped globalization by unprecedentedly reinventing itself, will continue to defy expectations. It will persist in amassing both hard and soft power, leveraging these resources not only for the benefit of its people and strategic independence, but also for enhancing the effectiveness of global governance.

As we face a high level of uncertainty in many regions of the world, the stability and predictability emerging from the political mechanisms in China is good news. The new consensus reached by the third plenum represents a middle path that seeks to avoid the two extremes: an innovative society cannot emerge in a context of absolute planning and control, yet building upon uncertain pillars is equally impractical.

The renaissance of an ancient civilization such as China's, as well as the modernization of a society as large and diverse as China's, cannot be easy processes. However, anyone reflecting on them without prejudice and making the effort to resist simplification would recognize how they enrich our world both materially and intellectually.