Xi's third term will see stronger state intervention

Significance

The outcomes further tighten the grip of the Communist Party and President Xi Jinping personally over the government and the private economy. Increased representation of delegates involved in China’s semiconductor industry reflects recognition of this sector’s strategic importance and the pressure it faces from US export controls.

Impacts

• There is no sign of any initiative that might relieve tensions in relations with the United States and its advanced economy allies.
• The Party will prioritise the promotion and control of strategic technologies such as semiconductors over the digital services economy.
• Foreign investment will be encouraged in priority sectors, but impediments such as China’s data regulation will not be rolled back.