Xi outlines vision to turn China into a global power by 2050

Bloomberg

President Xi Jinping warned of “severe” challenges while laying out a road map to turn China into a leading global power by 2050, as he kicked off a twice-a-decade party gathering expected to cement his influence into the next decade.
In a speech that ran for more than three hours on Wednesday, Xi declared victory over “many difficult, long overdue problems” since he took power in 2012. He said China would continue opening its doors to foreign businesses, defend against systemic risks, deepen state-run enterprise reform, strengthen financial sector regulation and better coordinate fiscal and monetary policy.
“Right now both China and the world are in the midst of profound and complex changes,” Xi said. “China is still in an important period of strategic opportunity for development. The prospects are very bright, but the challenges are very severe.”
The speech signaled that Xi would prioritize extending the influence of the Communist Party in China over the next five years, raising questions over his commitment to implementing tough reforms and expanding the role of the market. While economic growth has surprised on the upside in recent quarters, inefficient state-owned enterprises and ballooning corporate debt pose threats to stability. S&P Global Ratings last month cut China’s sovereign rating for the first time since 1999.
He also devoted significant time to defining China’s place in the world, calling for a strong military while also saying it would never seek global hegemony. Xi is seeking to boost China’s global clout with infrastructure spending and avoid a conflict with US President Donald Trump over North Korea. “The focus is on strengthening the Party as an instrument to lead China to the promised land,” said Steve Tsang, director of SOAS China Institute at the University of London. “Politics will remain the focus of his next five years. The Party will direct the economy and economic reforms.”
A last-hour surge by some of China’s biggest companies kept the nation’s benchmark stock index in the green. The Shanghai Composite Index ended 0.3 percent higher, despite almost three stocks falling for each that rose. The onshore yuan was little changed against the US dollar and 10-year bond yields held steady near the highest level since late 2014.
“We have a fairly clear blueprint of Xi Jinping’s political economy, with incredibly robust, strengthened state-owned sector playing a large role in propping up growth,” Jude Blanchette, engagement director at the Conference Board’s China Center, said in a Bloomberg Television interview. “We’re moving into a sort of China Inc. 2.0, a real upgraded version. That, sure, has markets and they’re going to play a really important role in this, but this is all within a birdcaged economy.”
Xi’s speech — officially known as the party work report, China’s most important policy document — included sections on politics, the economy, national defense, foreign policy and Hong Kong and Taiwan. He reiterated the goal of attaining “moderately prosperous society” by 2020, which has helped drive economic policy over the past five years. Xi also laid out an ambitious plan to make China a “great modern socialist country” over two stages in the following 30 years — part of what he has called the “Chinese dream.”
By 2050, he said, China will become “a global leader in terms of comprehensive national strength and international influence” with the rule of law, innovative companies, a clean environment, an expanding middle class, adequate public transportation and reduced disparities between urban and rural areas. “Chinese people will enjoy greater happiness and well-being, and the Chinese nation will stand taller and firmer in the world,” Xi said of his vision for 2050. He said China “is approaching the center of the world stage.”