Jakarta. China’s leaders have pledged to reduce reliance on foreign advanced technology and boost domestic consumption as the world’s second-largest economy faces “high winds” from prolonged trade tensions with the United States.

The ruling Communist Party released a 5,000-word communiqué on Thursday outlining its blueprint for the next five years, following a four-day top-level meeting in Beijing. The announcement comes just days before planned talks between President Xi Jinping and US President Donald Trump.

Five-year plans remain central to China’s policy-making, setting long-term priorities and allocating funding. Party plenums like the one held this week also serve to rally support for Xi’s leadership.

While the document signaled no major policy shifts, it reaffirmed China’s intent to remain a global manufacturing powerhouse while nurturing stronger domestic growth.

China Gains Confidence in Trade War

The communiqué did not directly mention the trade war with Washington but warned of “rising uncertainties and unforeseen factors.”

Han Wenxiu, a senior Party official overseeing financial and economic policy, told reporters Friday that China is well-positioned to weather global headwinds amid shifting power dynamics and intensifying great-power competition.

“There is always opportunity in crisis, and crisis can be turned into opportunity,” Han said.

Chi Lo, senior market strategist for Asia Pacific at BNP Paribas Asset Management, said the emphasis on scientific and technological self-reliance reflected Beijing’s growing confidence that it is less vulnerable to trade pressure.

By 2035, China aims to achieve “markedly stronger” international influence and safeguard the multilateral trading system, according to Leah Fahy, a China economist at Capital Economics.

Domestic Economic Challenges Persist

A prolonged property slump that began during the COVID-19 disruptions has weakened consumer confidence, reduced household wealth, and triggered layoffs.

The communiqué underscored the need to expand domestic demand. Beijing has already offered incentives to modernize factories and subsidize consumers, replacing old appliances and vehicles.

“The economies of major countries are all driven by domestic demand, and the market is the most scarce resource in today’s world,” said Zheng Shanjie, head of the National Development and Reform Commission.

Still, excess manufacturing capacity in several sectors has led to price wars and increased exports, further straining trade relations with the US and the European Union.

Despite government stimulus, China’s economy grew 4.8 percent last quarter — its slowest pace in a year. Factory activity contracted for the sixth straight month in September as domestic demand remained weak.

Beijing remains committed to doubling the size of its economy from 2020 levels by 2035, implying an annual average growth rate of 4–5 percent, said Lynn Song, chief economist for Greater China at ING Bank.

Manufacturing Juggernaut and High-Tech Ambitions

Accounting for about 30 percent of global manufacturing output, China intends to maintain an “appropriate level” of industrial activity, with advanced sectors forming its backbone.

“Manufacturing will remain a top priority, even in the face of overcapacity and price wars,” Fahy said.

China’s industrial base has evolved from labor-intensive production to high-value goods such as electric vehicles, robotics, and batteries. The next phase will center on advanced technologies like quantum computing, biomanufacturing, hydrogen and nuclear fusion energy, artificial intelligence, and next-generation mobile networks, Zheng said.

“These industries are ready to take off,” he added. “In the next 10 years, we will build another high-tech pillar to drive Chinese modernization.”

Even so, it remains uncertain whether stronger domestic investment and consumer spending will offset China’s export dependence. Companies such as BYD and CATL have emerged as global leaders in EV and battery technology, while China retains critical leverage in rare earth supply chains.

“The Chinese government views manufacturing as a matter of national security and geopolitical leverage,” said Gary Ng, senior economist at Natixis.

Xi Consolidates Power

Attendance at the four-day plenum was notably low — only 168 of the 205 full members of the Communist Party’s Central Committee were present. Many have been purged in Xi’s sweeping anti-corruption campaign, which has also strengthened his control over the Party.

“An unprecedented proportion of Central Committee members are in political trouble,” said Neil Thomas of the Asia Society Policy Institute.

The meeting also promoted Gen. Zhang Shengmin to China’s second-highest military post, replacing He Weidong, who was expelled alongside eight other senior officials.

Despite the internal shake-ups, Xi’s position remains secure. “The political situation faced by Xi and his dominance within the Party are still relatively stable,” said Xin Sun, a senior lecturer in Chinese and East Asian business at King’s College London.

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