China's ruling Communist Party has approved a draft of its next five-year development plan, emphasizing self-reliance in science and technology amid profound global changes and rising uncertainty.
The plan, outlined after a four-day closed-door meeting of the Party's Central Committee, vows to accelerate rapid economic development while consolidating national security.
It promises increased efforts to expand domestic demand and improve people's livelihoods, though specifics on curbing overreliance on exports remain absent.
The communique highlights building a modern industrial system with advanced manufacturing as the backbone and high-level scientific and technological self-reliance.
These priorities come as U.S. President Donald Trump threatens triple-digit tariffs on Chinese goods, following Beijing's announcement of new curbs on rare earths exports.
China holds a near-monopoly in rare earths production, vital for global defense and semiconductor industries, positioning it with significant leverage in upcoming trade talks.
Xi Jinping is set to meet Trump at the Asia-Pacific Economic Cooperation summit in South Korea next week, aiming for a fair trade deal despite recent tariff disputes.
On Monday, Trump signaled a thaw, stating the two countries need to thrive together and accepting an invitation to visit China early next year.
The plenum also saw the replacement of 11 Central Committee members, the highest turnover since 2017, amid an ongoing military corruption purge.
Analysts note that breaking China's dominance in rare earth supplies could take at least a decade, facing high capital costs, technical expertise gaps, and environmental risks.
The plan underscores continuity in policy, with manufacturing retaining a central role in national strength and security.
State media reports list developing a strong domestic market after industrial and tech goals, drawing criticism from economists urging a shift toward household demand-driven growth.
Capital Economics analyst Julian Evans-Pritchard observed that Beijing pays only lip-service to boosting consumption while leaning toward shoring up its manufacturing sector.
China's economic growth slowed to its weakest pace in a year during the third quarter, heavily reliant on exporting factories despite U.S. tariffs, highlighting structural imbalances.
Forceful industrial policies have built sophisticated supply chains and global dominance in many sectors, bolstering confidence in the trade war.
Yet, they have fueled overcapacity, deflationary pressures, and pushed overall debt levels to three times the economy's size.
Low wages, limited social welfare, and job insecurity keep domestic demand subdued, fanning international trade tensions.
Eurasia Group China director Dan Wang described the growth model as very fragile due to high debt and low inflation coexistence.
The full plan will be released at a parliamentary meeting in March.