Dear Focus Reader,

China's highly-anticipated Third Plenum concluded this week with a communique issued at the end of the session pledging to "further deepen reform comprehensively" while remaining "committed" to the CCP's bedrock ideology.

President Xi Jinping also reaffirmed the nation's commitment to "high-quality development" and advanced manufacturing, and emphasized the need for resilience against U.S. trade curbs and the importance of technological innovation to drive growth.

The communique echoed Xi's sentiments, highlighting a "new development philosophy" centered on innovation and self-sufficiency. It stressed the importance of technology, education, and talent as the foundation for China's modernization. It also mentioned "ecological civilization" as a key feature of the country's modernization, aiming to promote carbon and pollution reduction, green growth, and tackle climate change. This was also notably the first time the climate agenda was featured so prominently in a high-level government document.

However, beyond the high-level rhetoric, the document was criticized for its lack of specific policy measures to address pressing economic issues such as local government debt, the property market, and consumer demand.

"There remains a strong emphasis on high-quality growth. This means the tolerance for a period of modestly slower growth remains in place," said Becky Liu, head of China macro strategy at Standard Chartered. "And the bar for strong short-term economic stimulus remains very high."

In response, the U.S. has expressed concern over China's economic direction and its implications for global trade, as well as doubts about the feasibility of China's ambitious goals.

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