How Do China's 5-Year Plans Promote Stability and Attract Global Investors?

CGTN Europe

Andrew Sheng, Distinguished Fellow at the Asia Global Institute and Member of the International Advisory Council of the National Financial Regulatory Administration, spoke to CGTN Europe about the readout from China’s Fourth Plenum. He said the new Five-Year Plan outlines a strategy for high-quality, self-reliant development, with a strong focus on green, inclusive growth and technological advancement. China, he noted, aims to navigate global uncertainties — such as trade tariffs — by fostering domestic engines of growth, including internal consumption and high-quality technology innovation.

Transcript

00:00Andrew Sheng is the Distinguished Fellow at the Asia Global Institute.

00:05Well, this is a very comprehensive plan.

00:09It builds on the earlier five-year plans,

00:13and each of them have faced the context of changing environment, adapted to it,

00:21and it set out its principles very clearly, high-level principles,

00:25what it wants to achieve, which is a people-first, high-quality, high-standard development,

00:33self-reliant, moving towards high technology, better consumption, well-being for the people,

00:43and a green, inclusive environment of beautiful China.

00:49The communique says that socialist modernization by 2035 is the goal,

00:57and that the next five years in particular are going to be critical.

01:01How do you interpret that for the Chinese economy and banking?

01:07Well, the Chinese economy cannot be just considered on its own internal issues,

01:14whereas the external environment, as you know, is, at the best, well put it, very contentious.

01:26And it is very important, therefore, that China, because it is the second largest economy in the world,

01:32largest manufacturing, largest trading partner,

01:35steer a very clear path towards prosperity and stability

01:41that is a win-win for the world as a whole.

01:44Now, as you mentioned, the global context is one of great uncertainty at this time.

01:50I'm wondering how these long-term plans for China help the country to manage uncertainties.

01:58How do you get the balance between planning and being able to adapt to sudden changes?

02:04And I think, for example, of what's going on with the tariffs coming from the United States.

02:09Well, the tariffs are actually an external shock.

02:16But increasingly, as you know, Chinese trade is going down as a proportion of total GDP.

02:24So its significance over time will be reduced

02:29as the country develops more and more domestic engines of growth,

02:33particularly internal consumption.

02:35That internal consumption, including the investments, not only at the regional level,

02:43but also creating a better environment, rural rejuvenation,

02:50investments in high-quality technology, using much better, let's say, capital markets,

02:58on top of the present banking system.

03:00All these is a comprehensive, in a way, push to ensure much more resilient national growth

03:08within the context of external uncertainty.

03:12What message do these recommendations then send to global investors who are watching China's market?

03:19Well, global investors should be very encouraged that, number one,

03:26the opening up strategy is still, you know, on track.

03:30There is no such thing as more protectionism.

03:34You know, opening up is definitely carrying on.

03:36Number two, the seek for high-quality growth that is going to be inclusive and green

03:43will open up, you know, new opportunities.

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