Priorities Of The Politburo: What Is Going To Be The Agenda For The December Meeting?

Priorities Of The Politburo: What Is Going To Be The Agenda For The December Meeting?

by Swarajya Staff - Dec 4, 2022 08:45 PM +05:30 IST
Priorities Of The Politburo: What Is Going To Be The Agenda For The December Meeting? Beijing

The Central Political Bureau of the Communist Party of China is set to hold a meeting at the start of this month to discuss plans for next year's economic policies. As China's economy is expected to underperform this year, many are interested in how Beijing will balance its "dynamic clearance" strategy with its economic growth plans. Some economists believe that the Chinese government is caught between a rock and a hard place, and may be unable to stimulate the economy even with aggressive measures.

The Central Political Bureau holds a meeting at the beginning of December every year to set the general direction of the following year's economic policies. The upcoming meeting is the second such gathering since the formation of the new Political Bureau following the 20th Congress of the Communist Party, and will focus on economic issues for the first time.

In line with tradition, the Political Bureau will hold a meeting of the Central Economic Working Conference within a week of its December meeting to discuss the implementation of relevant guidelines. Policy targets, including economic growth targets, will be announced at the National People's Congress and the Political Consultative Conference in March.

Dynamic clearance may impact local business production capacity

Taiwan Economic Research Institute researcher Chiung Dar-sheng believes that the slowdown in China's economy may be linked to the overuse of "dynamic clearance" and its impact on local businesses' production capacity.

Chiung Dar-sheng stated: "Orders from mainland China to Taiwan have clearly decreased, but orders from Southeast Asia to Taiwan have increased significantly. Mainland China's production capacity cannot be opened up, and because of the clearing relationship, enterprises cannot manufacture or cannot respond to orders for delivery. Therefore, many orders are transferred to Southeast Asia. This year, of course, it will not be able to achieve the expected 5.5% economic growth, because to meet the standard, it must achieve a 13% GDP growth in the fourth quarter, but it is already December 2. The focus is now on next year's economic policy. It is estimated that the "dynamic clearing" of various industries will continue. It is difficult to achieve economic growth and employment at the same time. This is a very difficult problem. Beijing is in a dilemma."

The Central Political Bureau of the Communist Party of China meetings are considered significant because they provide an indication of the Chinese government's priorities and plans for the coming year. The decisions made at these meetings can have a significant impact on the Chinese economy and can affect economic policies and strategies both domestically and internationally.

In addition to discussing economic policies, these meetings may also cover other important issues such as social and political policies. The meetings are typically followed by a meeting of the Central Economic Working Conference, which is tasked with implementing the guidelines and decisions made at the earlier meeting.

Overall, the meetings of the Central Political Bureau in December are an important event in the Chinese government's calendar and are closely watched by policymakers, economists, and businesses both inside and outside of China.

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