DeepDive: Implications of the Third Plenum
Research and development as well as technology and the new economy dominated the Third Plenum resolution released over the weekend, in line with previous policy communication. Supply chain resilience and national strategic projects also featured prominently compared to previous readouts, while consumption once again took a back seat. We also noted indications that China is gearing up for prolonged trade tensions. Our latest analysis has more.
The Third Plenum doubled down on science and technology (research and development) and the new economy, as shown by our quantitative text-based indicators, which jumped compared to the last Third Plenum that had a focus on the economy in 2013. This was expected and should not come as a surprise, as it aligns with China’s policy communication over the last few years (see DeepDive: Signals from the Two Sessions and QuickScan: CEWC Doubles Down on New Economy). This strong focus on science and technology comes as China seeks to position itself as a leader in future industries and shield itself from growing geostrategic tensions.
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