First report of the 13th Five-Year Plan report series
In October 2015, the Fifth Plenary Session of the 18th Communist Party of China (CPC) Central Committee adopted the Proposal on Formulating the Thirteenth Five-Year Plan (2016-2020) on National Economic and Social Development (“the Proposal”). The Proposal calls for the accelerated formation of institutions, mechanisms and development patterns to guide China’s growth towards a ‘new normal’, with a focus on improving the quality and efficiency of development. This indicates that China will place a greater emphasis on the quality of development as it pursues a course of economic transformation, while simultaneously leveraging reform as the most effective catalyst for future growth and transformation.
Based on the Proposal, we present an analysis of China’s future development priorities and key opportunities for Chinese and foreign companies. We believe that China’s twin focuses on ‘inclusive development’ at home and increasing openness and integration into the global economy are set to create more opportunities for Chinese capital to ‘go out’ and for foreign capital to ‘come in’ during the 13th Five-Year Plan period. Industry players from around the world will need to understand and then compete for opportunities around these ‘China narratives’: Efficient China, Balanced China, Beautiful China, Open China, Happy China and Transforming China.
We hope this report will enable foreign governments and international institutions to better understand the policy shifts and development trends that we might expect to see in China over the next five years, and help them guide, encourage and facilitate outbound investment from and inbound investment to China. We also hope this report will serve as a useful reference for Chinese companies looking to ‘go out’ and cooperate with foreign companies in and outside of China, as well as for foreign companies to assess the evolving opportunities for their businesses to grow in and with China.