NEWS  /  Analysis

China Prioritizes Faster Tech Self-Sufficiency in New Economic Blueprint as U.S. Pressures Mount

By  xinyue  Oct 24, 2025, 4:01 a.m. ET

The communique largely reinforces policy priorities already articulated by President Xi Jinping — positioning China as a global technology powerhouse with a more resilient economy, advanced industrial capabilities, and a modernized military able to project international influenc

China has pledged to accelerate its drive toward self-reliance in science and technology, placing technological security and innovation capacity at the center of its national development strategy for the next five years.

The announcement came Thursday in a communique issued after a key four-day meeting of the Chinese Communist Party’s Central Committee in Beijing, which endorsed the draft framework of the country’s next five-year economic and social development plan.

The document underscores Beijing’s heightened urgency to strengthen domestic capabilities in core technologies — particularly semiconductors, artificial intelligence, advanced manufacturing, and next-generation communications — amid what Chinese officials describe as a rapidly shifting global landscape shaped by “profound and complex changes” and rising geopolitical uncertainties.

While the communique did not directly reference U.S. trade and technology restrictions, the implications were clear. The United States under President Donald Trump has sharply tightened export controls on high-tech products, aiming to cut off China’s access to cutting-edge chips, manufacturing equipment, and advanced computing technologies. Washington has also expanded tariffs, escalating trade tensions and disrupting global supply chains.

These external pressures have coincided with significant domestic economic challenges: a prolonged property downturn, weak consumer confidence, and the leadership’s struggle to generate strong internal demand. Despite these headwinds, Chinese exports have continued to grow in select markets as companies redirect sales to Southeast Asia, Latin America, and other developing economies.

“The statement suggests the government remains confident that domestic policy tools and industrial policy can counter external shocks,” said Gary Ng, senior economist at Natixis. “It likely means China will seek greater concessions from the U.S. if negotiations resume.”

The communique largely reinforces policy priorities already articulated by President Xi Jinping — positioning China as a global technology powerhouse with a more resilient economy, advanced industrial capabilities, and a modernized military able to project international influence.

Experts noted that continuity defined the message. “The general impression is that it highlights stability of strategic direction rather than major shifts,” said Xin Sun, senior lecturer at King’s College London.

Yet the scope of ambition appears broader and deeper compared to the country’s current five-year plan. Beijing will intensify its push for indigenous innovation, expand support for critical supply chains, and pursue breakthroughs in strategic sectors such as robotics, aerospace, new energy storage, and biomedicine.

The plan also places strong emphasis on sustainability and economic restructuring. China will “accelerate the all-out green transformation of economic and social development,” the communique said — signaling continued industrial policy support for clean energy technologies like electric vehicles, solar, and wind power, where China already dominates global markets.

Boosting domestic consumption remains another priority. Beijing has rolled out subsidies for household spending, child care, and EV and appliance trade-in programs, though economists say additional measures will be necessary to meaningfully bolster household demand. Despite weak consumer sentiment, the government insisted this week that China remains on track to achieve its full-year growth target of around 5%, following 4.8% expansion in the third quarter.

The Central Committee meeting also revealed the extent of recent political purges across the top ranks. Only 168 of 205 full members were present, and 11 alternate members were elevated to fill vacant seats. Notably, the leadership confirmed the removal of the country’s second-highest-ranking general — one of nine senior military officials recently expelled over alleged corruption.

Zhang Shengmin, currently head of the Central Military Commission’s anti-corruption watchdog, was named the new vice chair of the powerful military body. Analysts say his promotion reinforces Xi’s priorities of strict discipline, loyalty, and rapid military modernization — key components of China’s long-term national strength strategy.

More details of the 2026–2030 plan are expected to emerge in coming weeks, ahead of formal approval by China’s legislature in March. But Thursday’s message made one thing unmistakable: Beijing is doubling down on its belief that technological autonomy is essential to securing economic security — and global power — in an era of intensifying competition with the United States.

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