More Market and More State: China’s Economic Development in the New Five-Year Guideline
More Market and More State: China’s Economic Development in the New Five-Year Guideline

Author(s): Justyna Szczudlik
Subject(s): Economic policy, International relations/trade
Published by: PISM Polski Instytut Spraw Międzynarodowych
Keywords: China; East Asia; economy
Summary/Abstract: A new Chinese five-year plan assumes a recalibration of the country’s economic model and the introduction of market-oriented structural reforms, which means more market and less state intervention. The aim of this approach is to reassure Chinese society that the economy is stable after the slowdown in 2015 and to help it avoid the “middle-income trap”. Under the new plan, the economy should rely on innovation and domestic consumption. Despite these declarations, China’s authorities will not end their control over the economy and investments in the production sector. This implies greater engagement of the country abroad and more efforts and pressure on the EU to grant the PRC market economy status.

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