If we want to know what will happen over the next 5 years in China, we need to look at the China’s 12th Five Year Plan authorised by China National People’s Congress and CPC in March 2011. This preliminary review is based on those documents and on government and research institutes that have put out papers in response to those documents.
I. China’s Ten Major Challenges
The goal of the Chinese regulators is for China to become a moderately prosperous country by 2020. The current five year period will be critical in meeting that goal. China has recently reached a level where its per capita GDP equals $US4,000. Its goal is to achieve a $US10,000 per capita GDP by the year 2020. This is a critical transition. It is generally believed to be relatively easy for a country to achieve the $4,000 number. It is common, however, for countries to stall out in GDP growth and never achieve the $10,000 goal.