Takeaways from the 20th National Congress of CPC
The 20th National Congress of the Communist Party of China concluded on October 23, 2022. It is considered one of the most consequential meetings pertaining to China’s development plans and its future role in the evolving global equation. It takes stock of the past five years and charts a course for the next five years and beyond. In modern history, China’s economic development and modernization is unprecedented. The Chinese leadership term it as ‘peaceful development’ which is presented as ‘a new choice’ for developing countries for achieving rapid development.
The long-term Strategic Plan is envisaged in two steps by the CPC. The aim is to realize ‘socialist modernization’ from 2020 to 2035 and build China into ‘a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful from 2035 through the middle of this century.’ Reflecting on the transformation in the first decade of the new era, President Xi underscored the following three feats:
• China’s GDP — second largest in the world — accounts for 18.5 percent of the global economy, • China is now among the top ‘innovators’ having achieved breakthroughs in ‘core technologies in key fields’. Following a people centric development approach, China provides the largest education and healthcare facilities around the world,
• The Belt and Road Initiative, which is a major collaborative project for the international community for connectivity and infrastructure development.
Outlining China’s development objectives for the year 2035, President Xi specially mentioned the need to enhance per capita GDP to be at par with mid-level developed countries, significantly enhancing China’s soft power, and comprehensively strengthening the national security system and capabilities. He also emphasized China’s ambitious modernization drive. The central task of the CPC would be ‘to realize the Second Centenary Goal of building China into a great modern socialist country in all respects and to advance the rejuvenation of the Chinese nation on all fronts through a Chinese path to modernization.’
Following are the key takeaways:
1. President Xi Jinping begins a third term. He heads a new 24-member politburo and its powerful seven-person Standing Committee — all believed to be Xi loyalists. The strong President will, however, face tough challenges of invigorating the presently stalled economic growth, security threats in its periphery and more broadly in Indo-Pacific region, and working with competitors for a more stable international order.
2. In contrast to the hostile posturing by the US towards China, the message of President Xi is that of interdependence and ‘peace and development for humanity’. The National Security Strategy of President Biden issued a few days prior to the 20th CPC portrays China as the most serious geopolitical challenge to the US. President Xi, however, adopted a typical non-confrontational tone. While recognizing that the world has once again reached a crossroads in history, Xi reiterated China’s commitment to ‘promoting common development and a human community with a shared future’. Referring to Taiwan, he added that ‘we will continue to strive for peaceful reunification,’ but ‘will never promise to renounce the use of force, and we reserve the option of taking all measures necessary’.
3. China gives a clear message for coexistence. The CPC report says, ‘Only when all countries pursue the cause of common good, live in harmony, and engage in cooperation for mutual benefit will there be sustained prosperity and guaranteed security.’ It further adds that China adheres to the ‘right course of economic globalization and opposes all forms of unilateralism’. The CPC expressed opposition to ‘all forms of hegemonism, power politics, the Cold War mentality, interference in other countries’ internal affairs, and double standards’. President Xi affirmed, ‘no matter what stage of development it reaches, China will never seek hegemony or engage in expansionism.’
4. In the face of global economic downturn, the COVID-19 pandemic and many regional conflicts, CPC put its weight behind the need for collective efforts to address global peace and development. Against this background, President Xi reiterated the significance of the Global Development Initiative (GDI) and the Global Security Initiative (GSI). The Global Development Initiative (GDI) was launched by President Xi at the 76th session of the United Nations General Assembly in 2021. The Global Security Initiative (GSI) was proposed at the 2022 Annual Conference of the BOAO Forum for Asia Annual Conference. The GSI is a vision of common, comprehensive, cooperative, and sustainable security. The two initiatives reflect China’s vision of building a global community ‘with a shared future for mankind’.
5. China offers a unique and hybrid model of development combining central planning with market forces — a combination of freedom with oversight. It offers many lessons for developing countries.
Significance for Pakistan
Pakistan and China enjoy very close and strategic ties in all fields. The two countries are ‘iron brothers.’ CPEC is a very important part of President Xi’s Belt and Road Initiative. CPEC took off well with a good degree of success in the Early Harvest projects, comprising mainly power and infrastructure. This project — viewed as a game changer — has hit some snags due to unforeseen circumstances arising on the Pakistani side. There is a pressing need to reinvigorate CPEC with careful planning. CPEC should always enjoy nonpartisan political support in Pakistan.
With the signing of the phase 2 of the Free Trade Agreement with China, a very large percentage of the vast Chinese import market is now open to Pakistan. All key stakeholders should join hands to identify selected industrial sectors for exports destined for the Chinese market. At present, Pakistan-China bilateral trade has a yawning trade surplus in favour of China. Given the vulnerabilities of our market, a well thought out strategy needs to be devised to bridge this gap, even if gradually.
Pakistan must also make rational choices of attracting investments from China in high-tech sectors which can catapult our exports in the right direction in a short period of time. The invaluable opportunities offered by China should not be lost.
Our economic policy makers should draw pragmatic lessons from the hybrid economic model of China, which may be adjusted to Pakistan’s particular needs, conditions, and environment for fast tracking sustainable and inclusive growth and development.
