China’s Communist Party begins ‘Third Plenum’ with focus on slowing economy

China's Communist Party meeting focuses on economic growth, national security, and potential policy changes amid global tensions.

China’s ruling Communist Party started a four-day meeting Monday that is expected to lay out a strategy for self-sufficient economic growth in an era of heightened national security concerns and restrictions on access to American technology.

While the meeting typically focuses on such long-term issues, business owners and investors will also be watching to see if the party announces any immediate measures to try to counter a prolonged real estate downturn and persistent malaise that has suppressed China’s post-COVID-19 recovery.

‘Lot of unclarity’

“There’s a lot of unclarity of policy direction in China,” which is weighing on consumer and investor confidence, said Bert Hofman, the former World Bank country director for China and a professor at the National University of Singapore. “This is a point in time where China needs to show its cards.”

Economic growth slowed to 4.7% on an annual basis in the April to June quarter, the government reported on Monday.

Chinese leader Xi Jinping addressed the closed-door meeting on Monday, expounding on a draft of its coming decision on “deepening reform and advancing Chinese modernisation,” the official Xinhua News Agency said.

Security was tightened in central Beijing with uniformed guards posted in some subway stations and neighborhood-watch people wearing red armbands stationed in public areas.