Chinese Communist Party backs President Xi’s high-tech vision for economy

China’s ruling Communist Party concluded a high-level meeting on Thursday with its support for policies that aim to consolidate the technological power of the country and strengthen its national security.

A statement released at the close of the meeting provided only a general summary of the decisions taken. More details were likely to be released in the coming days.

The tasks discussed at the meeting will be completed by 2029, the 80th anniversary of the founding of the People’s Republic of China, the statement said.

The meeting’s agenda focused in part on strategies for self-reliant economic growth at a time when China faces increasing restrictions on access to Western markets for advanced technology, such as cutting-edge processors and artificial intelligence.

Foreign markets and investors were watching the meeting to see what the party could do to counter a crisis in China’s property sector and weak consumer confidence that have hampered the country’s recovery from the COVID-19 pandemic.

Economic growth slowed 4.7 percent year-on-year in the April-June quarter, while real estate investments and property sales continued to decline despite a series of measures to encourage families to buy a house.

Recent reports in state media and previous government statements suggest Beijing may continue to prioritize investment in technology and encourage companies to upgrade their equipment and expertise in line with leader Xi Jinping’s call for “high-quality development.”

Thursday’s statement addressed concerns that have dented consumer confidence and slowed China’s recovery from the COVID-19 pandemic, and acknowledged the need to improve “basic and bottom-up livelihoods, address the people’s most direct and realistic interests, and continuously meet people’s aspirations for a better life.”

He also promised improvements in income distribution, labor markets, social security and health care, without giving details.

The statement also mentioned the need to address the risks in the real estate market and other unspecified threats to the economy.

Another priority is to ease financial pressure on local governments that have racked up huge debts after a crackdown on excessive borrowing by property developers plunged the sector into crisis, cutting off a crucial revenue stream associated with planning licence fees. Thursday’s announcement only hinted in general terms at the need to reform the tax system and improve the integration of cities and rural areas.

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