What is the China 2030 Plan

William Meller - What is the China 2030 Plan
China 2030 attempts to set forth a possible development path for China that would result in the attainment of the status of a "rich country" by 2030.

China 2030: Building a Modern, Harmonious, and Creative High-Income Society is an extensive study of the Economy of China published in 2012 by the World Bank. The report is based on the strong conviction that China has the potential to become a modern, harmonious, and creative society by 2030. 

In the next 15 to 20 years, China is well-positioned to join the ranks of the world’s high-income countries. China’s policymakers are already focused on how to change the country’s growth strategy to respond to the new challenges that will come, and avoid the “middle-income trap.” 

In order to reach that objective, however, China must change its policy and institutional framework. China’s next phase of development will need to build on its considerable strengths—high savings, plentiful and increasingly skilled labor, and the potential for further urbanization—and capitalize on external opportunities that include continued globalization, and the rapid growth of other emerging economies, and promising new technologies. 

At the same time, China will need to address a number of significant challenges and risks, such as an aging society, rising inequality, a large and growing environmental deficit, and stubborn external
imbalances. 

This study suggests 6 acts for China looking to the future, and the information below comes from the World Bank Study, which you discover more in the of this post:

1. Rethinking the role of the state and the private sector

Implement structural reforms to strengthen a market-based economy by redefining the role of government; reforming and restructuring state enterprises and banks; developing the private sector; promoting competition; and deepening reforms in the land, labor, and financial markets. 

As an economy approaches the technology frontier and exhausts the potential for applying technology from abroad, the role of the government and its relationship to markets and the private sector needs to change fundamentally.

In the enterprise sector, the focus will need to be on further reforms of state enterprises, including measures to recalibrate the role of public resources, and introduce modern corporate governance practices and private sector development.

2. Innovation and global research

Accelerate the pace of innovation and create an open innovation system in which competitive pressures encourage Chinese firms to engage in product and process innovation not only through their own research and development but also by participating in global research and development networks. 

China has already introduced a range of initiatives in establishing a research and development infrastructure and is far ahead of most other developing countries. Its priority going forward is to increase the quality of research and development, rather than just quantity. 

3. Green Development 

Seize the opportunity to “go green” through a mix of market incentives, regulations, public investments, industrial policy, and institutional development. Encouraging green development and increased efficiency of resource use is expected to not only improve the level of well-being and sustain rapid growth but also address China’s manifold environmental challenges. 

The intention is to encourage new investments in a range of low-pollution, energy- and resource-efficient industries that would lead to greener development, spur investments in related upstream and downstream manufacturing and services, and build an international competitive advantage in a global sunrise industry. 

4. Equality of opportunity and social protection

Expand opportunities and promote social security for all by facilitating equal access to jobs, finance, quality social services, and portable social security. These policies will be critical in reversing rising inequality and increasing labor mobility. 

China’s relatively high social and economic inequality stems in large part from large rural-urban differences in access to jobs, key public services, and social protection.

Reversing this trend requires delivering more and better quality public services to underserved rural areas and migrant populations from early childhood to tertiary education institutions and from primary health care to care for the aged; restructuring social security systems to ensure secure social safety nets; and mobilizing all segments of society to share responsibilities in the financing, delivering, and monitoring the delivery of social services.

5. Fiscal system and fiscal sustainability

Strengthen the fiscal system by mobilizing additional revenues and ensuring local governments have adequate financing to meet heavy and rising expenditure responsibilities. 

Many of the reforms proposed in this development strategy—enterprise and financial sector reforms, green development, equality of opportunity for all—have implications for the level and allocation of public expenditures. 

6. Integration with global markets

Seek mutually beneficial relations with the world by becoming a proactive stakeholder in the global economy, actively using multilateral institutions and frameworks, and shaping the global governance agenda.

China’s integration with the global economy served it well over the past three decades. By continuing to intensify its trade, investment, and financial links with the global economy over the next two decades, China will be able to benefit from further specialization, increased investment opportunities and higher returns to capital, and a mutually beneficial flow of ideas and knowledge

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