Xi Jinping’s Meeting to Revive China’s Economy

Xi Jinping, China’s leader, alongside approximately 370 Communist Party officials, is convening in Beijing this week for a strategic meeting aimed at revitalizing the world’s second-largest economy. The gathering, held away from public view, will focus on reviewing a comprehensive plan to address the economic challenges facing China.

During the four-day meeting that commenced on Monday, Mr. Xi is expected to preside at the Jingxi Hotel, a historic establishment known for its Soviet-style architecture. The assembled party loyalists are likely to endorse his proposed initiatives, including a draft proposal on “further comprehensively deepening reform.”

While Chinese media is generating anticipation around Xi’s plans, the true measure of success will be seen in how these policy changes are implemented across various levels of government. The effectiveness of these reforms will hinge on rebuilding trust among the Chinese populace and regaining the confidence of disillusioned foreign investors.

Following a period marked by sluggish growth, a downturn in the property sector, and mounting debt among local governments, Chinese businesses and consumers have been grappling with economic challenges. The latest data released on Monday revealed a significant deceleration in economic growth, underscoring the urgency for decisive action.

“A lot of uncertainty feeds into very low consumer sentiment, very low investor sentiment,” noted Bert Hofman, a former World Bank country director for China, emphasizing the critical juncture at which China finds itself. “This is a point in time where China needs to show its cards.”

The ongoing Third Plenum of the Central Committee, orchestrated by party leaders, serves as a platform to advance Xi’s vision of achieving “high-quality” growth. Historically, Third Plenum meetings have been pivotal in rallying support for ambitious modernization agendas, akin to the transformative efforts led by past Chinese leaders like Deng Xiaoping.