Welcome to New China

The 20th National Congress of Communist Party of China concluded with a clear message: welcome to new China. China has made huge strides to transform from a quiet to vocal, passive to proactive, follower to leader, world factory to world laboratory and peripheral to central power at the global level.

Though the process was going on, it accelerated under the leadership of Secretary General Xi Jinping. The “Go Global” has been completed and China is now embarking on a new journey – national rejuvenation. Thus, the old policies and mechanisms to interact with China will not work and there is need to revise them in accordance with new realities.

Let’s start with economy. China is committed to presenting an economic model which strives to achieve common prosperity without comprising on efficiency and needs of market. China drew lessons from the mistakes of capitalism and liberal economic governance. To achieve common prosperity, it has identified high quality development and a new development philosophy as guiding principles. The economy will be reformed to new realities and theory of development.

It seems, the focus will be on domestic market, livelihood opportunities, technology and enhanced consumption. It will help at two levels. First, China’s growth reliance on external markets will be lowered to help country concentrate on development rather than working to mitigate trade disputes. Second, China will become trade and economic centre of world due to enhanced demand of commodities and products. It has already started creating mechanisms and erecting institutes to accommodate the new status. Shanghai Import Expo is a perfect example on this front.

New drivers of growth, including innovation, scientific development and dreams of technological progress, will open a new world of opportunities. Youth will be encouraged to lead the way. Innovation-driven enterprises and industries will be welcomed. China will try to establish itself the leading player of rule setter and global standards (Made in China and Vision 2035).

China will equally focus on enhancing the role of production sector and will avoid overemphasising margin trades and financial institutions. It is in line with vision of common prosperity.

As President Xi Jinping wants people to earn prosperity through hard work, the job of the state should be to provide opportunities for decent livelihoods. Lastly, China will be working to create a model of economy which is governed by the will and needs of people, not the capital or capitalists. The mechanisms will be erected to ensure that there is no accumulation of wealth as it leads to disordered governance controlled by the elite group. They dictate the governance system and election of governments according to their own choices and needs. It gives birth to rule of capitalists through the capital.

International relations and security policies will be further refined to cater future needs of China. It is anticipated that China will be more assertive to protect its interests and will not hesitate in taking risk. Second, China will be proactive to reform the global system to reclaim its due place.

Since the emergence of President Xi as core leader, China has accelerated efforts to create a fair, equality and integrity-based system which cares for everyone. On security front, China has made major headways. President Xi believes without powerful army the dream of a world power can never be achieved. Thus, he started to reform the security apparatus. He established National Security Commission and developed National Security Law to smoothen the functioning of security system. He introduced many legislative initiatives – Counterintelligence Law (2014), Counterterrorism Law (2016), Cybersecurity Law (2017), National Intelligence (2017), Maritime Police (2021) – around the People’s Armed Police (PAP). Concurrently, he started the process of reforming People’s Liberation Army (PLA) and People’s Armed Police to meet the new needs.

He slashed the size of PLA and encouraged them to enhance their capabilities and capacities to fight modern wars. For that purpose, he prescribed investment on research, development and combat skills as key elements.

During the last decade, the budget for R&D and skill development was enhanced manyfold. Second, he reformed police and domestic security structure to cater the needs of future and ensure social stability. President Xi believes social stability is bedrock to realize the dream of national rejuvenation.

Global Security Initiative is another trademark move of President Xi to cater the international needs of China. It shows China will play a leading rule in defining and securing global order and peace. China, however, will be sticking to core vision of community with shared future, and four pillars of GSI (common, comprehensive, coordination, suitability) reinforce the argument. In conclusion, China is striving hard to complete the process of transformation. Thus, to interact with China, the world will have to come out of past mentality and try to embrace new realities.