The 20th National Congress of the Communist Party of China (CPC) opened. The key word in Xi's third act will be "self-sufficiency"."China must accelerate the creation of a new development model and pursue high-quality development," Xi Jinping said. Luxury executives around the world will keep an eye on China this weekend for an update on its zero-Covid policy, which has devastated supply chains and forced store closures throughout 2022.
- The 20th National Congress of the Communist Party of China (CPC) opened at the Great Hall of the People in central Beijing.
CPC opens 20th National Congress – Global Times
Xi Jinping delivered a report to the 20th CPC National Congress on behalf of the 19th CPC Central Committee at the Great Hall of the People in downtown Beijing.
- The key word in Xi's third act will be "self-sufficiency." Especially technological, given the winds of decoupling blowing from Washington.
Xi puts $400 billion of semiconductor imports on the plate per year and is convinced that he can avoid a total break, also weighing the leadership on 5G, batteries and rare earths. After years of zero Covid and the elimination of cultural exchanges, Xi's China appears increasingly inaccessible.
- "China must accelerate the creation of a new development model and pursue high-quality development," Xi Jinping said.
China to accelerate creating new development pattern, pursue high-quality development: Xi – People’s daily
"We must fully and faithfully apply the new development philosophy on all fronts, continue reforms to develop the socialist market economy, promote high-standard opening up, and accelerate efforts to foster a new pattern of development that is focused on the domestic economy and features positive interplay between domestic and international economic flows," Xi said.
China will make sure that the implementation of the strategy to expand domestic demand is integrated with the efforts to deepen supply-side structural reform, Xi said. Efforts will be made to boost the dynamism and reliability of the domestic economy while engaging at a higher level in the global economy.
The country will move faster to build a modernized economy, Xi said.
China will raise total factor productivity, make industrial and supply chains more resilient and secure, and promote integrated urban-rural development and coordinated regional development, so as to effectively upgrade and appropriately expand economic output, Xi said.
Efforts will be made to build a high-standard socialist market economy, Xi said. "We will work to see that the market plays the decisive role in resource allocation and that the government better plays its role."
The industrial system will be modernized, with measures to advance new industrialization, and boost China's strength in manufacturing, product quality, aerospace, transportation, cyberspace, and digital development, Xi said.
To advance rural revitalization across the board, China will continue to put agricultural and rural development first, consolidate and expand achievements in poverty alleviation, and reinforce the foundations for food security on all fronts.
China will thoroughly implement the coordinated regional development strategy, major regional strategies, the functional zoning strategy, and the new urbanization strategy, Xi said.
High-standard opening up will also be promoted. China will steadily expand institutional opening up with regard to rules, regulations, management, and standards, accelerate the transformation into a trader of quality, and promote the high-quality development of the Belt and Road Initiative, Xi said.
- Luxury executives around the world will keep an eye on China this weekend for an update on its zero-Covid policy, which has devastated supply chains and forced store closures throughout 2022.
Will China relax its zero-Covid policy? - Vogue Business
Xi Jinping is expected to win a third term. Some hope he will use the congress to relax his controversial zero-Covid policy, which has sought to contain the virus through draconian measures including repeated lockdowns, prompting an economic crisis in China.
There have been some positive signs. The Beijing Marathon is returning on 6 November after a two-year hiatus. It's one of the biggest public events in the capital and the 30,000 runners will not be required to wear masks (though requirements include two to three vaccines, PCR tests 24 hours before and 48 hours after the event, and participants must stay in Beijing a week before the race). Hong Kong has also resumed quarantine-free travel, and a Chinese vaccine has recently been approved for use, although so far only in Indonesia. Jinping has resumed overseas travel for the first time since the pandemic hit.
However, on 11 October, Communist Party-owned publication People’s Daily issued an op-ed praising the zero-Covid policy as necessary to ensure the stability of the country. Many online commentators read this as a sign that Jinping will not back down on his policy, for fear of appearing weak to his political rivals.
“The removal of China’s Covid restrictions will be very slow; indeed it is likely that Chinese citizens will continue to live under some kind of virus-related limitations well into next year, if not into 2024 as a minimum,” says Adam Knight, founder of China-focused cross-cultural agency Tong.
Luxury earnings have consistently been held back by poor performance in China, as Covid-19 related restrictions forced store closures. The zero-Covid policy has also heavily impacted the global supply chain: China is the world’s largest exporter of goods, and a number of cities with major ports and manufacturing facilities have been under sporadic lockdown.
“The big question for luxury is when — or if — international travel will resume,” says Knight. “China’s globetrotting luxury shopper class is unlikely ever to recover to where it was just a few years ago, though of course any returning visitors will be welcomed with open arms on the streets of London, Paris and Milan.”
