Xi’s Dilemma: China Struggles to Set Key Policy Meeting Amid Economic Woes

5-year term conference for key policy decisions
The collapse of the foundation laid by Likonomics a decade ago
Proposed simultaneous meeting with the Central Economic Working Council

The triennial meeting, which determines the main policies to be implemented during the five-year term of the Chinese leadership, is struggling to set a date. This is due to the severe economic situation this year, the first year of the ‘Third Term of Xi Jinping’ where Xi Jinping, the President of China, and Premier Li Keqiang are the first and second in command, and the leadership is grappling to devise fundamental solutions.

On the 8th, Japan’s Nihon Keizai Shimbun pointed out that there are no signs of the Communist Party of China, centered around General Secretary Xi, holding the third plenary session of the 20th Central Committee. The triennial meeting is an event where central committee members and candidate members of the Communist Party gather to prioritize policies to be implemented within the five-year term of the Chinese leadership.

Nikkei explained that ten years ago, on November 9, 2013, Likonomics, which emphasized market roles, fostered private economies and enterprises, and reduced central government management, was promoted at the 18th triennial meeting held under the leadership of Xi and Premier Li Keqiang. The economic route that China would take for the next ten years, proposed by Premier Li at the time, received praise overseas. However, the situation has completely changed this year, the first year of Xi’s third term. State-owned enterprises have become more bloated, and the foundation of Li-conomics has collapsed. All policy decision-making power has been concentrated on the party and Xi, solidifying the one-person leadership system, and the prime minister’s economic policy leadership has also disappeared.

The Chinese economic situation is also the worst. The insolvency of real estate development companies continues, and the domestic and foreign financial situation is not good. Although they tried to rebound after the transition to ‘With Corona,’ they are in a state where they should worry about recession. Nikkei said, “If the triennial meeting is held ‘barehanded’ while China’s economy, diplomacy, and security continue to shake, the sense of instability may be highlighted,” and “It is understandable that the Xi Jinping regime has to be cautious.”

There is a forecast that the meeting will be held after President Xi achieves results from a summit with U.S. President Joe Biden at the Asia-Pacific Economic Cooperation (APEC) summit held in the United States. Next month, along with the Central Economic Work Conference, which determines the direction of economic operation, there is also a mention of the possibility of holding a triennial meeting.

By. Kim Kwang Soo