It is the world's next largest economy and a significant factor in the global economic cycle. If China can get the economic wheels going, it will also benefit the rest of the world. But at present, it is going slowly.
This week, data was released showing that economic growth is significantly weaker than the Chinese leadership's target, and behind the figures, there are also a number of ongoing challenges to be addressed.
How do you think about consumption? If you are going to be able to increase domestic consumption, it will probably require more far-reaching reforms than have been presented so far, says Björn Jerdén, program manager for the National Knowledge Center on China at the Foreign Policy Institute.
That question is likely to be grappled with by China's leaders now as they gather in Beijing for what is called a plenum, where they will develop a new five-year plan for, among other things, the country's economic development.
Attempted stimulation
The outbreak of the pandemic resulted in extensive and prolonged lockdowns in China, and consumption has not taken off since then. The latest statistics also showed that retail sales are at their lowest growth rate since November.
Already, the leadership has tried in various ways to stimulate, including through easing of consumer loans, child benefits, and payments of one-time amounts.
I do not think it is enough, but you have to build out the welfare system further. It is because people do not have any safety nets and therefore choose to save, says Jerdén.
High youth unemployment
Another major problem is the high youth unemployment, currently around 19 percent, which has been explained by the fact that young Chinese are no longer willing to accept working conditions, while there is a mismatch in the labor market when millions of students leave the country's university education.
If you ask ordinary Chinese, the job prospects and finding good jobs for young people are something that is brought up. It is a major challenge and is linked to securing growth, says Björn Jerdén.
In addition to these two points, Björn Jerdén believes that new technology such as AI is something that will be addressed during the meeting this week.
– China is not a rich country today, but wants to become a high-income country. That's how they think it should happen, by catching up with and surpassing the USA, Europe, and Japan.
Tobias Österberg/TT
Facts: How China is governed
TT
The Communist Party governs China as an authoritarian one-party state. Political opposition is suppressed and opposed.
The party controls the state apparatus and the army. Party membership is a prerequisite for other leading positions in society.
China's president and the party's general secretary is Xi Jinping. Since he took office in the fall of 2012, Xi has consolidated more and more power around himself.
The party's highest decision-making body is the Central Committee, with around 200 members who are elected at party congresses every five years. The committee usually meets seven times a year. It appoints the party's powerful Politburo, which in turn has a core of seven members who are part of the so-called Standing Committee.
The People's Congress, a parliamentary assembly with around 3,000 members, has no real opposition, and most decisions are made by an executive committee controlled by the party. In addition to this, there is the Chinese People's Political Consultative Conference, a consultative body without formal power, with representatives from approved organizations and groups.
Source: Landguiden/Foreign Policy Institute.
