Beijing’s new plan aims to strengthen manufacturing, tech dominance Outcome of CPC’s fourth plenum

Senior Chinese officials have outlined the Communist Party of China’s (CPC) strategic priorities for the next five years following the conclusion of the fourth plenum of the 20th Central Committee, which ended on October 23.

The meeting, held behind closed doors in Beijing, gathered hundreds of full and non-voting delegates, making it one of the key political events held between the Party’s national congresses.

During a post-plenum media briefing, leaders from the National Development and Reform Commission (NDRC), the Ministry of Commerce, and other top agencies presented a list of 12 priorities that will guide China’s policy direction through the country's 15th Five-Year Plan period (2026–2030), as reported by Nikkei Asia.

At the top of the list is the goal to “build a modernised industrial system.” According to NDRC Chairman Zheng Shanjie, this involves “consolidating and upgrading” China’s leadership in sectors such as chemicals, machinery, and shipbuilding, while also “cultivating and expanding” emerging industries, including aerospace and the rapidly developing ‘low-altitude economy’—a sector focused on drones and flying vehicles.

Zheng added that the plan also emphasises the growth of future-oriented industries, such as quantum technology and nuclear fusion.

The approach to upgrading China’s industrial capacity aligns with the priorities set out in the current five-year plan, which concludes this year. The plenum’s communique, issued after the four-day meeting, offered guiding principles and general objectives for the upcoming phase of China’s economic and social development.

The CPC Central Committee established several foundational principles to steer the next five-year plan, which is expected to be finalised and formally approved by China’s legislature in March.

These include: upholding the Party’s overall leadership, putting the people first, pursuing high-quality development, deepening reform, balancing an efficient market with effective government, and ensuring the integration of development and security.

In addition, the Committee outlined several major objectives: achieving significant progress in high-quality growth, strengthening technological self-reliance, making breakthroughs in reform, fostering cultural and ethical advancement, improving citizens’ quality of life, advancing the Beautiful China Initiative for ecological sustainability, and reinforcing the nation’s security infrastructure.

Over the past year, Beijing has introduced a series of measures to stimulate domestic consumption, including consumer loan subsidies, childcare support, and trade-in incentives for electric vehicles and household appliances. Such policies are intended to stabilise growth as China faces headwinds from both internal structural issues and global economic tensions.

In its official statement following the plenum, the CPC vowed to “face major tests” and “tackle difficulties” amid “high winds, rough waves, and raging storms.” The metaphor underscored the Party’s acknowledgement of rising challenges — both domestic and international — as it works toward meeting medium- and long-term development goals.

Rare acknowledgement of external pressures

While the communique offered only a broad framework for the upcoming plan, analysts observed several notable shifts in tone and emphasis. According to Nikkei Asia, one of the most significant changes is the renewed emphasis on economic openness, a move that appears to reflect concern over declining foreign direct investment caused by geopolitical tensions and slower growth.

The communique warned that China is confronting “profound and complex” global transformations and growing uncertainty. Although it did not explicitly mention the ongoing trade war with the United States, the tensions remain a backdrop to China’s policymaking.

China’s leader Xi Jinping is expected to meet US President Donald Trump for talks in South Korea next week, following preparatory trade discussions in Malaysia. Since returning to the White House, Trump has increased tariffs on Chinese imports to push manufacturers to relocate production to the United States, adding further strain to China’s economy.

By Nazrin Sadigova