China's Premier Li Qiang: 'Rectify irrational competition and expand domestic demand'

Draft of the 15th Five-Year Plan expected to be released soon

Emphasis on 'boosting consumption and expanding investment'

Chinese Premier Li Qiang, ahead of the Communist Party's 20th Central Committee's 4th Plenary Session to be held next week, emphasized that 'irrational competition must be rectified and domestic demand must be continuously expanded.' Analysts say this reconfirms a domestic-demand-led growth strategy ahead of discussions on the 15th Five-Year Plan (2026~2030).

On the 14th (local time), according to Xinhua News Agency, Premier Li told a roundtable attended by economic experts and businesspeople, 'We must properly conclude the 14th Five-Year Plan and steadily advance the 15th Five-Year Plan,' and 'we must systematically design measures to boost consumption and also strive to effectively expand investment.'

He urged that 'industry disorder and irrational competition must be comprehensively managed,' and 'cooperation between large and small enterprises should be promoted and the pace of industrial conversion of scientific and technological achievements should be accelerated.'

On external matters, Premier Li also said, 'We should actively support the stability of foreign trade and foreign capital and pursue market diversification.' This is interpreted as an intention to maintain its position within global supply chains amid U.S. and European scrutiny.

The 15th Five-Year Plan is scheduled to be officially discussed at the 4th Plenary Session of the 20th Central Committee, to be held from the 20th to the 23rd. The final draft will be announced during next March's Two Sessions (the National People's Congress and the Chinese People's Political Consultative Conference).

This Five-Year Plan is expected to be a watershed moment for the Xi Jinping administration's 'economic structural transition.' Within China, attention is focused on whether a concrete blueprint will be presented to resolve accumulated structural problems such as low growth, a property slump, and youth unemployment.

Reporter Lee Hye-in hey@hankyung.com