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14 SMT Magazine • January 2016 China's economic trajectory and serves as the holistic strategy behind it. The country has been diligently and inten- sively working on its 13th FYP for national eco- nomic and social development, dubbed 13.5. This all-encompassing product is the result of comprehensive, disciplined, and systematic ef- fort, serving not only as the guiding principle, but in fact the implementable practice. More importantly, the Plan is truly put into work. The phenomenal growth and reform during the last three decades demonstrably manifest the power of the Plan, although results may not al- ways be straightforward and speed bumps have inevitably been encountered along the way. In preparation for drafting the 13th FYP, the National Development and Reform Com- mission (NDRC) solicits applications from large corporations, industry associations, universi- ties, research institutions, and international or- ganizations to participate in the initial research phase. The previous FYP is evaluated for what worked and what still needs more work. Infor- mation, ideas, opinions and data are collected from all elements of society, including policy analysts, scientists, engineers, local govern- ments, advisory bodies and the public. After the NPC approval, China's Central Govern- ment implements the Plan and passes it to lo- cal provincial and city governments for imple- mentation. Considering a slowing economy, the plan will build on the 12th FYP and will serve as a framework to advance key national reforms in- troduced under Xi Jinping's administration and to adjust China's economic growth model, in order to maintain stable growth. The goal of this first plan under the Xi administration is to promote China's transition to a consumption- driven, sustainable economy, and moderately prosperous society. The Plan emphasizes qual- ity of economic growth instead of numerical GDP growth. Beijing's broader strategic target—to double the size of China's economy and the people's average income from 2010 to 2020—is expect- ed to be maintained. To meet the target, GDP growth is believed to need to be around a 6.5% average annually. Notable Events in 2015 What notable events have occurred in 2015 which exerted substantive or psychologi- cal impact on the economy and the way to do business? The stock market summer meltdown and the yuan's devaluation versus the dollar are the most prominent. The stock market meltdown was felt globally and the plunge created world- wide jitters. Its meltdown prompted Beijing's crackdown on financial irregularities. Yet, it should be noted that the stock market repre- sents only a small portion of its capital funding and that it dropped after a huge jump (150%) before coming down (40%). In an effort to put a floor under a slow- down, China's central bank has started a series of stimulus measures including cutting inter- est rates and reducing the reserve requirement for banks. It has also furthered a liberalizing path in its financial system and currency, albeit conservatively and cautiously. Its government also exercised other options by approving many infrastructure projects worth more than $283 billon (WSJ, October 19, 2015). The mas- sive stimulus program has caused its debt levels to climb. China's goal to make the yuan a more glob- al currency has gotten a boost by establishing the collaboration with the U.K. and the addi- tion of the yuan to the IMF SDR currency bas- smt prospects & perspectives NEw YEar OutlOOk: ChiNa's fivE YEar plaN " the phenomenal growth and reform during the last three decades demonstrably manifest the power of the plan, although results may not always be straightforward and speed bumps have inevitably been encountered along the way. "

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