China is set to lay out the blueprint for its 13th Five-Year Plan. The Chinese Communist party will meet this week to discuss the goals and the reforms for the future of the nation's economy.
Three-hundred of the party's leaders will be a part of the Central Committee and meet to gauge the popularity of the President Xi Jinping since he came to power three years ago.
Monday's meeting will shed to light on the issues pertaining to China's economic stability as leader's struggle to steer it toward a better economy. Ideas will be exchanged on whether the reforms should be changed, some of which that have extended since 1993, according to The Wall Street Journal.
"The next five years will be very important for restructuring the economy," said Jia Qingguo, associate dean at Peking University. "The traditional way of managing the economy is meeting more and more obstacles."
The conventional drivers of the economy, such as the manufacturing and the residential construction sectors, are not contributing well enough, whereas the new-age sectors like consumption, services and innovation aren't compensating for the lack in growth. President Xi Jinping's blueprint for 2016-2020 will address the issue and bring about a structural change to propel China into high-income status. However, a more immediate fix has been executed with the coming of the 6th interest-rate cut of the year, Bloomberg reported.
Chinese leaders maintain that they plan on meeting the seven percent growth target that they had set out to achieve during the next long-term plan. The threat that China now faces with regard to its planning is the current turmoil that the stock market is facing. With the unexpected devaluation of the Yuan, people are slowly fearing the competence of the policymakers since an abrupt slowdown could collapse the economy, according to Reuters.
