The 19th party congress of the Chinese communist party was inaugurated in Beijing on October 18, and has been the focus of China related media reporting for the past few weeks. Six Year Plan has made an analysis of the congress work report, that we have summarized in this report. This has been done in cooperation with Patrik Andersson, a Swedish sinologist.
In the attached analysis, Six Year Plan has taken a somewhat different approach. Our analysis is based on the original Chinese language version of the work report delivered by general secretary Xi Jingping at the first day of the congress. The work report sets the direction of party work for the years to come, and in most respects, indicate a continuation of the direction set at the 18th party congress. What stands out from the 19th party congress is an even tighter political control of all aspects of society, emphasizing party leadership over all work, and an even more ambitious agenda for strengthening nationalism and China’s position in the world. Economic and political reform are also covered in the report, but both areas receive comparatively less attention compared to previous work reports.
Some key take-aways are:
The essence of the report was the update of “Socialism with Chinese Characteristics,” to “Thought
on Socialism with Chinese Characteristics for a New Era,” an ideology that stresses “party
leadership over all work”.
The report called for greater market access for foreign enterprises, and for opening up the service
sector to foreign investments.
It reaffirmed China’s intention to develop world-class manufacturing and technology industries, and
its commitment to innovation in the economy.
Tensions remain between ambitious market reforms and a continued strong support of state
ownership and leadership in the economy.
The report struck a nationalistic tone throughout, putting great emphasis on the “Great Rejuvenation
of the Chinese Nation”.
The report makes clear that the party’s control over society is going to further expand and tighten in
the following years.
To operate in this complex environment, a number of areas will become increasingly important:
- China knowledge at headquarters. Close communication between the China organization
and top management. The higher speed of development, comprehensive changes to legal
framework and potentially stronger political involvement will most likely require more frequent
updates of strategy and plans. The ability to take fast decisions will be crucial.
- Actively engaging with authorities on standards and regulations. A planned approach to
public affairs, covering both monitoring of policy and regulatory development, and engagement
through available platforms
- Enforcement of company culture and code of conduct. Companies active in China need to
guide their staff on how to handle operational and ethical challenges
To download the report click here. For questions about the report and information on how you can improve your organisation’s China practice email our Managing director Pär Uhlin at par.uhlin@sixyearplan,se