Background

On 23 May, President Xi Jinping stressed the importance of further deepening reform across the board when chairing a symposium in Jinan, Shandong. This symposium was believed to be part of the preparation for the third plenary session of the 20th Communist Party of China (CPC) Central Committee in July. The session will primarily study issues concerning further comprehensively deepening reform and advancing Chinese modernization.

Importance of the Coming Plenary Session

This year’s third plenum could have immense significance as it offers President Xi Jinping and the new leadership an opportunity to outline their planning for the Chinese economy amid short-term challenges and structural issues.

Furthermore, third plenums have typically focused on reforms. Those precedents, together with a Chinese economy facing severe challenges, thus raise expectations for reforms at the coming plenary session. 

What to Expect at the Coming Plenary Session

We believe that new major policies and policy directions will be announced in the four key areas below:
1. Deepening reform in the systems for education, science and technology, and promoting technological and innovative development
2. Promoting high-level opening-up 
3. Promoting green development 
4. Deepening reforms in the field of people’s livelihood, and promoting common prosperity and shared development

Implications for Businesses

1. China’s commitment to reform and opening-up improves its growth prospects
2. New business opportunities abound in foreign trade and investment 
3. Seize the opportunities from China’s innovation and digitalization push
4. Embrace the new paradigm of green development
5. Tap the rural market potential