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China’s leaders warned of “risks” in areas such as a slumping property market, government debt and financial institutions at a meeting of the top Communist Party and called for tighter social controls to ensure stability.
The party’s Central Committee placed security at the same level of importance as economic growth as it warned of geopolitical risks and declared that China should “lead global governance” as it closed the Third Plenum, one of its most important meetings to set medium- to long-term policies.
“It is necessary to coordinate development and security, to implement various measures to prevent and address risks in key areas such as real estate, local government indebtedness and small and medium financial institutions,” the politicians wrote in a communiqué from the meeting.
They added that China must “weave a dense network of social security risk prevention and control and effectively maintain social stability” and strengthen state propaganda. “It is necessary to strengthen public opinion leadership and effectively prevent and address ideological risks,” they wrote.
The statement from President Xi Jinping’s long-awaited conclave of 363 members and alternates of the Communist Party’s elite Central Committee is seen as a comprehensive summary of the proceedings. More details on the possible reforms could be published in the coming days in a separate document.
China’s economy is struggling to recover from a real estate slowdown and revive investor confidence after a crackdown on the private sector. Xi’s vision for the economy has focused on technology production rather than domestic consumption, which analysts say is key to a full recovery.
While the third plenary statement encouraged the development of market mechanisms, any reference to consumer demand was completely absent.
“It is necessary to make better use of the role of market mechanisms, to create a fairer and more dynamic market environment [and] optimize the efficiency of resource allocation,” the statement said, while also pledging to “better protect market order” and “correct market failures.”
The statement did not specify any reduction in the dominant role of state-owned enterprises in many sectors, which economists believe are crowding out their private-sector counterparts.
“It is necessary to ensure . . . different property economies have equal access to the factors of production,” the statement said.
The communiqué also promised to deepen reforms of the fiscal and tax system, but gave no details. Analysts believe a better balance between central and local government finances is needed.
“The plenum restated the government’s economic goals and acknowledged some key risks, but it inspires little confidence that the government has a strategy to effectively manage the economy’s cyclical and structural problems,” said Eswar Prasad, a Cornell University professor and senior fellow at Brookings.
Bert Hofman, the former World Bank director for China based in Beijing, wrote on X that one of the striking differences between this communique and the previous landmark third plenary in 2012 was the reference to markets.
In 2012, the aim was to give the market a “decisive role”. “This time, at least in the Communiqué, it is less emphatic,” he said.
On foreign affairs, the statement underscored Xi’s push for a multipolar world — code for a limited US role. “China’s modernization is . . . the path of peaceful development,” it said, adding that it was necessary to “advocate for a world of different poles.”
The communique emphasized China’s ambition to become a “socialist modern superpower” by mid-century, without providing a detailed definition.
The party also formally accepted the “resignation” of former Foreign Minister Qin Gang from the Central Committee. Qin disappeared without explanation last year and was replaced by his predecessor, Wang Yi.
The statement said the Central Committee also confirmed the decision to expel former Defense Minister Li Shangfu and People’s Liberation Army Missile Force officers Li Yuchao and Sun Jinming from the party for “serious violations.” China’s Central Military Commission, which Xi Jinping also chairs, announced an anti-corruption probe into the equipment purchase last year.
Li was replaced by Dong Jun, a former navy chief, in December.
Additional reporting by Nian Liu, Tina Hu and Wenjie Ding in Beijing and Cheng Leng in Hong Kong