China's Third Plenum to Address Economic Challenges

China's upcoming Third Plenum, a crucial event for economic reforms and policy shifts, is expected to focus on issues like manufacturing capacity, fiscal challenges, and debt sustainability to revive the underperforming economy. Despite global anticipation for significant reforms addressing long-standing problems, the meeting may lead to incremental changes building upon existing policies rather than deep transformations. The Chinese leadership aims to boost confidence in the economy by promoting advanced manufacturing, tackling debt risks, and revitalizing sectors like real estate and private businesses. President Xi Jinping's push for technological self-sufficiency by 2035 underscores the country's focus on innovation, but challenges like weak original innovation capacity and insufficient domestic demand remain. The plenum is seen as a critical juncture to steer China's economic course amidst mounting geopolitical complexities and economic pressures, with expectations for gradual approaches to key imbalances and challenges.