Xi Jinping will present China’s five-year strategy at the fourth plenary session this week. The plan aims to make China the world’s second-largest economy, in the context of competition with the United States. It is notable that the meeting will take place one week before a planned meeting with U.S. President Donald Trump in South Korea.
The economy is not the only topic. The plenary may also address personnel changes, since several officials have been removed after the anti-corruption campaign. One main issue is the changes in the Central Military Commission, which has lost some credibility because of Xi Jinping’s campaign. Three of the commission’s six military members were dismissed. During the plenary, about 12 alternate members are expected to fill vacancies in the Central Committee.
According to Neil Thomas, a specialist on China at the Asia Society Policy Institute, each member of the Central Committee knows that their future depends on Xi Jinping’s favor. At the same time, the personnel changes strengthen Xi Jinping’s control over both the party and the military.
Meanwhile, in the United States, government operations have been suspended for the third week because the Senate has not passed a funding bill for federal agencies before the new fiscal year. For China’s leadership, this meeting is especially important. They believe the country is working in a hostile global environment, mainly because of the trade war with the U.S. and limited access to Western technologies. According to the National Bureau of Statistics, China’s economic growth in 2025 fell to its lowest level in the third quarter. Annual growth reached 4.8%, lower than the previous quarter. This decline is attributed to external economic pressure, but domestic political and economic imbalances also play a role.
Next Five-Year Plan and Domestic Economic Challenges
The five-year plan will take effect in 2026, with full details expected only by March next year, after approval by the legislature. Xi Jinping has highlighted the main priorities: updating the economic strategy to shift the focus from production growth to improving product quality. The goal is to build an economy that develops innovative technologies and is less dependent on cheap labor and exports. The plan also considers a transition to green energy and reducing pollution to limit the exploitation of natural resources.
China’s main economic challenge is low consumer demand amid excess production. Youth unemployment is relatively low. Economic regulation is needed, as industrial development is partly slowed by overproduction. International partners are urging China to halt the export of surplus products, as overproduction drives down market prices.
Jakob Gunter, head of the Economics and Industry Program at the MERICS research center in Berlin, is skeptical about China’s economic renewal plan. He says there is little chance that the new five-year plan will differ significantly from the current strategy, because Xi Jinping already controls the system, and large-scale structural changes are not in his interest at this stage. The plan may focus on boosting consumer demand and limiting domestic competition to balance excess production. However, Gunter notes that if changes occur over the long term, we can expect stronger social protection, a review of subsidiarity policies, and a reduction of excess investments. China aims for stability and sustainable development in its economy.
