Why China’s Xi Is Pushing ‘High-Quality Development’

When China’s economy was unshackled from Covid-19 controls in late 2022, hopes were high that it would roar back to help power global growth. Instead, the country has faced a confluence of problems: a property crisis, towering local government debt, sluggish consumer spending and rising trade tensions. President Xi Jinping has been unwilling to pull out the big stimulus guns in response, fearful of encouraging another bout of debt-fueled growth. He’s focusing instead on high-tech and green industries in the hope they’ll provide a more sustainable basis for future prosperity, an approach summed up in a new buzzword: “high-quality development.”

The term, sometimes translated as “high-quality growth,” emphasizes the quality of economic growth instead of the absolute pace. When Xi first used the term during a key party congress in 2017, he said China’s economy is transitioning away from a “high-speed growth phase.” He highlighted the importance of lifting productivity and improving the structure of the economy, as he called for more efficient and sustainable development. An analysis of Communist Party publications since then reveals an emphasis on six key priorities, including making the economy greener, more innovative and balanced.