China wants to make itself less dependent on the rest of the world. In view of the trade and technology war with the US and the global economic downturn caused by the corona pandemic, the new five-year plan is intended to make the country more independent. The most significant realignment of the second largest economy in a long time brought the leadership of the Communist Party to the conclusion of four-day deliberations in Beijing on Thursday.

On the State and party leader Xi Jinping had previously explained the recommendations to the plenary session of the Central Committee, as reported by state media. He pursues the strategy of “dual cycles”, which, while still emphasizing the opening of China, emphasizes the promotion of the domestic market as the main engine and one’s own innovation for greater independence.

Essential Wende Experts spoke of a “major turnaround in China’s economic policy,” which was declared as a response to US pressure and anti-globalization trends. The plan could open up new opportunities for German companies for whom China 14 was the most important trading partner.

“Investments or research cooperation in strategically important areas are more important than ever for China in view of the geopolitical environment,” said Max Zenglein from the China Institute Merics in Berlin of the German Press Agency. “For German companies that want to participate, China is rolling out the red carpet.”

Promotion of domestic demand The focus of the project is the promotion of domestic demand as well as research and development for the “internal circulation” as the “mainstay of the economy”. The “external cycle” – international trade and investments from abroad – is assigned a supporting role. Of the 14. Five-year plan for the period from 2021 to 2025 should to be approved at the annual People’s Congress in March.

“China is now realizing it is vulnerable,” said Wang Huiyao, advisor to the Chinese government and founder of the China and Globalization Center, told Bloomberg financial news agency . He referred to the US sanctions against Chinese technology giants such as the largest network equipment manufacturer and second largest smartphone manufacturer Huawei. “Therefore the leaders have to be prepared for something like a technological decoupling.”

More independence without decoupling According to Merics expert Zenglein, China does not want to detach itself from the global economy. “Striving for more independence is not to be equated with a process of decoupling,” he said. “In the expectation that the headwinds from abroad will increase, China’s leadership is betting on absorbing global value chains.” Beijing is “well aware” of the importance of foreign companies in China for economic development.

The plenary was the highest party meeting since the outbreak of the corona pandemic almost a year ago. Infections were first discovered in December in the central Chinese metropolis of Wuhan. With strict measures, quarantine, entry bans and mass tests, the most populous country on earth has largely brought the virus under control.

Corona under control There are only very few, smaller outbreaks. This enabled the economy to normalize again. With the coronavirus under control, the country is likely to be the only major economy to grow this year. After a sharp slump at the beginning of the year, China’s economy grew again by 4.9 percent in the third quarter compared to the same period of the previous year. This means that growth of 0.7 percent has been achieved since the beginning of the year.

The new five-year plan should also learn lessons from the – at least initially inadequate – handling of the corona outbreak and strengthen the health system . In addition, China’s goals in the fight against climate change are to be laid down. President Xi Jinping announced in September that China wanted to achieve climate neutrality “before 2060”. Its carbon dioxide emissions should also “peak before 2030” – not only “by 2030 “, as China had promised in the Paris Climate Agreement.

(axk)