From UPSC perspective, the following things are important :
Prelims level: Neighbouring countries; China;
Mains level: Impact of China's Policy on Indian Market;
Why in the news?
China’s Communist Party commenced and formulated a strategy for achieving self-reliant economic growth amidst heightened National security concerns and restrictions on American technology access.
What are the plenums of the Chinese Communist Party?The Chinese Communist Party holds a major congress twice a decade, where members of the Central Committee are elected. In between the party congresses, the Central Committee holds seven plenums attended by all its current members. The plenums are numbered from 1st to 7th, with each focusing on different aspects:
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What are the major decisions taken at these meetings?
- Chinese govt is planning to take measures to restore and expand domestic consumption, focusing on sectors like automobiles, real estate, and services.
- Reforms are also planned to transform the mechanisms of economic development by making the domestic market and technological innovation the main drivers of growth and emphasis on advancing the “New Development Pattern“ adopted in the 14th Five-Year Plan (2021-2025)
- Provisions that provided relaxation of restrictions on home purchases and funding curbs on property developers in some cities are incorporated to boost the struggling real estate market.
- Focus on advancing science and technology sectors like Artificial Intelligence, Green Energy and Electric Vehicles under the “New Quality productive Forces” initiative
What are the expected implications shortly for regional trade and politics?
- Trade and Economic Relations: Policies discussed at plenums can impact China’s trade strategies on economic reforms, market regulations, and industrial policies could influence trade volumes, tariffs, and investment flows.
- Changes in China’s economic policies could include shifts in investment patterns, and infrastructure projects linked to China’s Belt and Road Initiative.
- Security Dynamics: Discussions on National security policies and Military strategies can impact regional security dynamics, especially India’s Arunachal Pradesh region influencing alliances, defense postures, and regional stability.
Conclusion: The Indian Government needs to watch its ‘Neighbourhood First’ Policy very effectively keeping its stance assertive rather than passive this time.
Mains PYQ:
Q China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC IAS/2017)
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