Chinese economy


published: 12.10.2023

Report: The party knows best – aligning economic actors with China's strategic goals

As the Chinese Communist Party (CCP) approaches the 2023 Third Plenum, an event which will give important indications on the future of China’s economy, MERICS is excited to launch a new report titled “The party knows best: Aligning economic actors with China’s strategic goals.” MERICS' economists analyze the meaning of the fundamental shifts in China’s economic governance that are currently unfolding.

After a decade in power, party and state leader Xi Jinping has fundamentally reshaped China’s political economy in pursuit of the CCP’s long-term goal: to return to a strong and prosperous China at the heart of the global economy. The impact is visible in the domestic economy as the party expands its control over businesses to align them, by hook or by crook, with national strategic priorities. Internationally, China’s relationship with liberal market economies is moving from global integration to intense competition – and potential conflict.

MERICS Chief Economist Max J. Zenglein and Lead Analyst Jacob Gunter argue that Xi’s recalibration of the political economy first and foremost aims not at boosting China’s overall development, but rather at securitization – the pursuit of resilience in a geopolitically challenging environment.