China Pledges Five-Year Boost in Domestic Consumption and Tech Self-Reliance

China's top leaders have pledged to significantly increase domestic consumption over the next five years, as part of broader plans outlined during the recent Fourth Plenum meeting and in preparation for the 15th Five-Year Plan starting next year. This strategic shift aims to balance consumption with effective investment, focusing on consumption-related sectors such as urban planning, public services, and elderly care, while also bolstering technological self-reliance in areas like quantum computing and hydrogen energy. Despite the economy's slow post-pandemic recovery and challenges including sluggish domestic spending and a protracted property sector crisis, policymakers remain optimistic, emphasizing the importance of invigorating the domestic market to reduce export dependency and address structural imbalances. The leadership also highlighted the need to consolidate national security alongside economic development, signaling continuity with past policies but with a renewed focus on integrating supply and demand dynamics. Vice Premier He Lifeng's upcoming trade talks with the U.S. and potential high-level meetings indicate ongoing international engagement amid these domestic priorities. Experts note this approach emphasizes investment as a means to stimulate consumption rather than direct cash handouts, reflecting China's ideologically driven governance style.