Xi wants top officials focused on manufacturing
Xi Jinping is intent on increasing China’s dominance in manufacturing.
On January 20, Xi delivered his annual speech at the Central Party School in Beijing to ministerial-level officials from around the country.
Some context: Xi uses these speeches to explain the outcomes of the most recent Central Committee plenum and discuss key issues for the year ahead.
Xi was clear: The overarching goal of the 15th Five-Year Plan is to improve China’s (already world-beating) manufacturing sector.
Specifically, Xi said:
- “We must maintain a reasonable proportion of manufacturing and vigorously develop advanced manufacturing.”
But, Xi cautioned that things will not be easy:
- “Xi...pointed out that China's development is currently in a period where strategic opportunities coexist with risks and challenges, and where uncertain and unpredictable factors are increasing.”
Given all the uncertainty, Xi told officials that they need to be flexible in how they go about achieving their objectives.
Get smart: In the years ahead, Chinese firms will become even more competitive in the global marketplace, which will exacerbate tensions with the US and EU.
Get smarter: Policymakers' focus on the supply side will also further exacerbate imbalances in the economy.