Beijing : The recently concluded four-day Third Plenum of the Communist Party of China (CPC) did not unveil any major new initiatives as anticipated internationally. Instead, it ended with a familiar call for "further deepening reform comprehensively to advance Chinese modernization." The Plenum set a new goal to complete its reform efforts by 2029, coinciding with the 80th anniversary of the People's Republic of China.

Political Continuity Over Economic Action
Despite expectations of significant policy moves to address the declining economy and troubled property sector, President Xi Jinping’s statements focused more on political stability than immediate economic recovery. Analysts noted that the language of the Plenum's resolution, while standard, lacked specifics on actionable measures to tackle China's current economic challenges.

Preparing for Long-Term Leadership
The resolution appears to position Xi Jinping for continued leadership beyond 2027. Notably, the resolution mentioned Xi's name only six times, down from nine times in the previous year's communique. This decline may reflect the dire economic situation rather than a shift in Xi’s influence.

Historically, Chinese leaders have not admitted to economic policy mistakes, and Xi is unlikely to break this tradition despite internal criticism. The 2029 goal aligns with Xi’s political strategy, allowing him to extend his tenure and present the completion of reforms as a milestone.

Domestic and International Challenges
Domestically, China faces mounting political pressure due to economic struggles. Internationally, tensions with the US could escalate, particularly if Donald Trump is re-elected. The decoupling dynamic and South China Sea tensions add to the complexities Xi must navigate.

Key Points from the Plenum's Resolution
Economic Structure and Private Sector Support: The resolution hinted at stronger support for the private sector by omitting the phrase “public ownership remains mainstay” and emphasizing a balanced relationship between public and private sectors. It reiterated the goal of strengthening State-Owned Enterprises (SOEs) while detailing measures to boost the private economy.

Local Government Empowerment: Recognizing the financial strains on local governments, the resolution proposed transferring more power from the central government to local authorities, allowing them to retain a larger share of fiscal revenues and regulate local property markets.

Increasing Domestic Demand: The resolution addressed the need to boost domestic demand, which has stagnated. This complex challenge involves several factors and requires more than a statement of intent to resolve.

Focus on Science and Technology: Highlighting technological innovation as crucial for Chinese modernization, the resolution called for breakthroughs in "industries of the future" and "strategic industries." It emphasized the role of both state and private enterprises in achieving this goal.

Building Self-Supporting Supply Chains: The resolution outlined plans to develop industrial and supply chains that are self-sufficient and risk-controllable, aiming to bolster key industrial chains.

Future Outlook
Forecasting China’s situation in 2029 is challenging. While the CPC remains confident in its ability to catch up with and potentially overtake the US, economic tensions are likely to persist. The property crisis and slow economic recovery could continue despite new measures. Xi’s political continuity seems assured, but the underlying economic conditions will likely create ongoing challenges.

As China navigates its economic and political landscape, the focus remains on achieving long-term goals set by the CPC, even amid current difficulties.