BYD auto maker’s electric cars at the international container terminal of Taicang Port at Suzhou Port, in China’s eastern Jiangsu Province. China, already a world leader in electric cars, seeks to develop its science and technology capabilities, which will see it become a world leader in technological innovation. – Picture: AFP / Taken on September 11, 2023
By David Monyae
The 20th Central Committee of the Communist Party of China (CPC) held its third plenary session (also called the third plenum) from July 15 to 18.
It is arguably the most important of the seven plenums held between CPC Congresses as it is where the top echelons of China’s ruling party convene to discuss economic, governance, social and foreign policies and also decide on important appointments.
For perspective, it was the third plenum of November 1978 that initiated the economic reforms that propelled China to an economic superpower. It was also during the third plenum of 2018 that the CPC decided to make constitutional amendments to pave that way for President Xi Jinping’s third term.
This third plenum was particularly significant because it is the first since China embarked on the second centennial goal of building a modern socialist country by 2049. China’s economy is changing, and new policy adjustments are needed to keep the economy on a growth trajectory.
As such, the outcomes of the deliberations give onlookers an idea and sense of China’s priorities and its policy direction in its quest to realise the centennial goal.
Having taken place just a few weeks before the convening of the Forum on China-Africa Co-operation (FOCAC) Summit in Beijing, the deliberations and outcomes of the plenary session will inform China’s approach to the Summit, hence it is important for Africa to understand what was agreed upon at the session to move from an informed position as it engages China.
The third plenum did live up to its billing. The meeting reiterated China’s reforms and modernisation goals as articulated by President Xi’s report to the CPC Congress in 2022 and in the country’s 14th five-year plan which runs until 2025.
Major structural reforms were announced including the prioritisation of new industries such as biotech, artificial intelligence, new energy technologies, and aerospace among others, which will become the new drivers of growth as China pursues what it calls high-quality development.
Through investment in research and development, China seeks to develop its science and technology capabilities, which will see it become a world leader in technological innovation.
Nurturing and developing indigenous talent will reduce reliance on foreign technology, access to which is unreliable as a result of protectionist policies by western governments. The country is already leading in the production of electric vehicles (EVs), solar panels and produces over 80 percent of the world’s lithium-ion batteries.
China’s focus on new energy and materials presents an opportunity for African countries, some of which are well-endowed with critical transition minerals such as lithium, manganese, cobalt and platinum which are used to make green energy technologies that are central to curbing carbon emissions.
In addition to the envisaged technological revolution, the third plenum also agreed to revolutionise the country’s social security system – a key plank in the vision to turn China into a modern socialist state.
Actions to be taken in this sector include the reform in the management and financing of pension and old age insurance funds, which is critical as China is slowly becoming an aging society.
Unemployment insurance, workers’ compensation and childbirth insurance will be revitalised to provide a social safety net to the poor and those facing pressures of raising children. Moreover, a health-first strategy will be implemented to create a robust and efficient healthcare system while making it more affordable for the Chinese population.
All these social security measures are tied to the economic strategy of dual circulation wherein improvement in domestic demand will play a key role. By reducing the costs of healthcare, child rearing, housing, and ageing, the Chinese government hopes that it will boost the levels of disposable income.
Other key resolutions endorsed by the plenum include building the country’s governance capacity, creating a genuine national market by getting rid of internal barriers to the movement of factors of production, promoting integrated rural-urban development, and pursuing high standard opening up among others.
High standard opening up will entail setting up a conducive institutional environment to attract foreign investment through the protection of property rights and comprehensive regulatory reform to promote efficiency and predictability.
This is an opportunity for African businesses to explore the possibility of investing in China. Moreover, the plenum reiterated China’s active commitment to the reform of global economic governance. African and other global south countries have long called for the reform of the international economic system in a bid to stop the marginalisation of poor countries.
Hence having the support of a major power like China will go a long way in amplifying the voices of reform in multilateral platforms. More importantly from an African perspective, the plenum committed to continue the implementation of the Belt and Road, Science, Technology and Innovation Co-operation Action Plan in various sectors including energy, digital economy, artificial intelligence, finance and green development.
The implementation of the BRI will comprise both major projects and small public welfare projects. African countries have benefited immensely from the BRI in the past, but they still need more investment in infrastructure – especially cross-border infrastructure – in order to make the African Continental Free Trade (AfCFTA) a reality. Hence, Africa and China can work together for mutual benefit within the vision laid out by the third plenum.
* David Monyae is the Director of the Centre for Africa-China Studies at the University of Johannesburg
** The views expressed in this article are those of the writer and do not necessarily reflect the views of The African