“China’s 14th 5-Year Plans reveal unease over income inequality and social divide”

China has released its 14th 5-year plan with the over-arching theme of improving its own domestic conditions, boosting quality of growth and people’s livelihoods, enhancing technological self-efficiency, bolstering national security system and capabilities, and strengthening environmental protection through investments in renewable energy. In this RadioFinance dialogue, the discussion revolved around China’s 14th Five-Year Plan, which detailed the government’s next phase of development to become a higher income advanced economy. Bert Hofman, director of the East Asian Institute at the National University of Singapore, pointed out that the emphasis of the five-year plan is on the country’s quality of growth. The focus shifts to a “dual circulation” strategy, particularly on creating indigenous innovation and increasing domestic consumption to drive growth. John Gong, professor of economics at the University of International Business and Economics in Beijing, stated that the five-year plan is a vision statement which sets the goal of elevating China qualitatively into a modern economy and society. Here are the key points that were discussed during the interview: ● China is focusing on domestic technology and innovation as it plans to lessen reliance on external sources ● China is prepared for the worst when it comes to food and energy security ● How long can China maintain its GDP growth rate as its increasingly higher income economy will inevitably slow down? ● The government’s unique monetary policy and quantitative easing that target financing to particular economic sectors, such as SMEs and green finance ● Competition between enterprises is not driven by the central government, rather is between municipal governments. ● Fintechs such as Ant Financial play important role in providing financial access to SMEs ● Has China’s rural revitalisation done enough to bring up its agriculture sector and narrow income inequality with urban cities? ● A growing middle class is driving increase in household consumption but more to be done to encourage household spending ● Personal taxation and social safety nets in China are still at very low levels Full transcript and video: https://bit.ly/3wWtXpg #China’s14th5-YearPlans #incomeinequality #DualCirculationStrategy #Covid19 #GDPGrowth #RuralRevitalisation #SpanishFlu #GreatDepression #FactorProductivity #GlobalFinancialCrisis #MacroeconomicTools #Soes #Fintech #ECommerce #SocialSafetyNets #Dibao

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