Xi Jinping sticks to economic goals calling development top priority

Chinese President Xi Jinping reiterated that economic development is the Communist Party’s “top priority,” a signal that Beijing will continue to emphasize growth despite some analysts expecting a shift toward greater focus on national security.

At the opening of the 20th party congress in Beijing, in which Xi is likely to secure a third term in power, he echoed development-first phrasing used in congress addresses by every party leader since Jiang Zemin in 2002. “Development is the party’s top priority in governance,” he said.

Xi has increasingly been highlighting the need to balance security concerns with economic growth since 2020, prompting some analysts to suggest Xi would drop the development-first slogan. That would have been a major departure signaling Beijing would be willing to push other policy goals at the expense of economic growth.

By sticking to the party’s stance and reasserting a goal for per-capita GDP to reach the level of a moderately developed country by 2035, Xi allayed concerns about policy shifting away from growth. At the same time, the president warned of the security risks China faces when pursing its ambitions, and twice mentioned in his speech the need to “balance development with security." 

“I was encouraged that Xi Jinping still emphasized development as China’s top priority, though national security also played a more prominent part than five years ago, which is of course understandable in light of international developments,” said Bert Hofman of the East Asian Institute at National University of Singapore.

Xi hinted at those geopolitical tensions, saying the party should prepare for “major tests of strong winds and high waves.” 

“It’s reassuring that the leaders say that growth still comes first and foremost in the current stage of development, especially as we are faced with economic difficulties from virus curbs and as we are in for challenges from the US over the long term,” said Wu Xianfeng, fund manager at Shenzhen Longteng Assets Management Co. “If we were to go back on our target for development it would be very damaging for confidence.”

The president repeated the party’s key economic policies, including “dual circulation” -- driving growth through domestic demand, a nod to concerns about decoupling from the West. The “resilience and security” of supply chains should be improved, he added.