Beijing, China. (Source: vimiss.vn)

The conference is a particularly important event for the Chinese Communist Party, taking place in the context of the world's second largest economy facing growth challenges and impacts from external geopolitical tensions.

Opportunities and challenges intertwine

The Third Plenum of the Central Committee is usually held every five years, one year after the National Party Congress. However, this conference will be held nearly two years after the 20th National Party Congress concluded in October 2022. The Third Plenum of the Central Committee has always been closely linked to China's major decisions, playing a guiding role in the reform and opening-up process since 1978, contributing to the country's explosive economic growth over the past four decades.

According to observers, this conference takes place in the context of China's economy entering a period of slowing down but still has much potential and opportunity for breakthrough. The profound and long-term impact of the Covid-19 pandemic and geopolitical tensions have posed challenges to the recovery and growth of the world's second largest economy.

China's economy is currently facing problems such as a real estate crisis, declining domestic consumer demand, and stagnant private investment leading to high unemployment. Data released by the National Bureau of Statistics of China (NBS) on July 15 showed that the country's growth in the second quarter of this year was only 4.7%, lower than the 5.3% increase in the first quarter of the same year.

Despite many challenges, China's economy still has a lot of room for growth. In the short term, NBS data shows that the country's economy is still on track to reach its target of 5% GDP growth in 2024. In the long term, new drivers of China's economy have formed, accumulated, developed and are ready to break out.

In addition, the industry chain and consumption prospects are constantly expanding in scale and depth; high-quality opening and enhanced competitive advantages; and the development model in which new and old manufacturing industries are gradually transforming are positive factors for growth in China in the coming time.

Currently, China is also in the transition period between the old and new economic models. The old development model focused on investment and growth stimulation, leading to the massive development of many low-quality industries, the imbalance between tax and fee reduction policies and financial issues, along with the impact of the epidemic, causing economic development to stagnate. According to analysts, China needs to shift to a development model that optimizes the industrial structure, develops the endogenous driving force of the economy, and effectively controls investment.

Continue to promote modernization

The previous Third Plenums of the Central Committee showed that the Communist Party of China has always taken reform and development as its main goals. The Third Plenum of the 11th Central Committee (1978) initiated China's reform and opening up. The Third Plenum of the 18th Central Committee (2013) proposed to deepen comprehensive reform, emphasizing that "the market plays a decisive role in resource allocation." The Third Plenum of the 19th Central Committee (2018) adopted a plan to deepen the reform of the Party and state structures.

In that context, the 20th Central Committee's third plenary session is expected to continue the reform and modernization process, closely following the two main goals of "promoting Chinese-style modernization" and "continuing to deepen comprehensive reform", developing new quality production forces, reforming the financial system, state ownership, and innovating enterprises...

Compared with the 5th Plenary Session of the 13th Central Committee, this conference focuses on solutions to promote both breadth and depth. The measures are expected to further promote technological innovation and further improve the business environment, creating new growth drivers for China's sustainable high-quality development.

For global economic stability

High-quality reform and opening-up and innovation are the two main drivers of China's robust and sustainable development amid unprecedented changes in the world. As the Chinese economy is undergoing a transition from old growth drivers to new growth drivers, comprehensively deepening reform is crucial to ensuring a stable and smooth transition.

This will also help restore people's confidence at home and abroad in China's economic development prospects, help the country strengthen its image as a great power, and bring stability to the international community.

At the same time, as an important contributor to global growth, the decisions made by Chinese leaders at this conference will play a major role in pushing back the anti-globalization trend and will be meaningful in promoting the development of the global economy.

The flexible reform and innovation policies put forward at this conference will also continue to put China's modernization process on the right track, becoming a model for China's economic development in the new situation as well as contributing to the recovery and stability of the global economy as a whole.