In the face of a “grim and complicated situation at home and abroad”, China is in need of a modern and efficient logistics system to enable both “domestic circulation” and “international circulation”, the country’s top economic task force has concluded. The decision by the Central Economic and Financial Affairs Commission, which is headed by President Xi Jinping, is a sign that China will continue to spend heavily on infrastructure projects, including high-speed railway lines, airports and warehousing. Premier Li Keqiang, Vice-Premier Han Zheng and China’s ideology tsar Wang Huning also attended Wednesday’s meeting as China again stepped up its efforts to build up a consensus over long-term economic strategies. Xi said the commission, which was upgraded from the former central leading group on economic and financial affairs in early 2018, has made a slew of strategic decisions to achieve “significant results”. Implementation must be done from a political high ground. The key is to generate actual results and meet the goals Central Economic and Financial Affairs Commission “Many issues discussed and decided at the Central Economic and Financial Affairs Commission are long-term and strategic things that matter for the country’s economic and social development,” read a summary of the meeting published by the official Xinhua News Agency. “Implementation must be done from a political high ground. The key is to generate actual results and meet the goals.” In addition, the commission decided that China has to invest in commerce facilities so that products can reach consumers faster. The commission is one of the four major bodies upgraded under Xi in March 2018 – the other three cover comprehensive reform, cybersecurity and foreign affairs. The third meeting of the commission this year, after it only met twice in the whole of 2019, also reviewed the implementation of decisions made by the commission in the last three years. Having met five times in 2018 and 2019, the first meeting of the commission in 2020 occurred before the outbreak of the coronavirus in January. It discussed the development of Chengdu and Chongqing, while the second meeting in April discussed new growth potentials and supply chain security amid the coronavirus pandemic. The meetings have no officially announced schedule, and detailed discussions are kept secret, with state media usually broadcasting heavily edited summaries. However, the increased frequency of the meetings comes at a time when the world’s second largest economy is facing a series of challenges, namely worsening growth prospect, debt burdens and financial risks caused by the coronavirus, as well as continued souring relations with the United State s and rising tensions with countries including Australia and Canada. In response, China has already put forward its new dual circulation strategy, where it will rely more on itself for development, although debate about the effectiveness of the strategy has been relatively loud in Beijing. A senior government policy adviser, who declined to be named as they are not authorised to talk about internal discussions, told the South China Morning Post that there are still many questions about the strategy, including, how to balance the two seemingly conflicting goals of “relying more on China’s domestic market” and “opening up the domestic market wider to the world”. The confusion is particularly unhealthy as China is expected to approve a new five-year plan at a key Communist Party gathering next month, while also discussing a longer-term plan for 2035, the adviser said. Gong Gang, a professor at Yunnan University of Finance and Economics, said China has to focus on solving deep-rooted domestic problems. China can’t rely on foreign demand in the short term because of the pandemic Gong Gang “The move is largely a result of the US decoupling attempts,” he said. “Also, China can’t rely on foreign demand in the short term because of the pandemic.” A newly published book containing Xi’s previous comments on security, many of which are only now being made public for the first time, show that the Chinese leader has long been worrying about the country’s economic and financial stability. “Financial risks can be hidden for long and deep, and then erupt instantly,” Xi reminded senior officials at the Central Economic Work Conference in December 2016. “The outbreak of the US subprime crisis happened overnight. If we are going to see a big problem in the future, it is very likely to fall in this area [of finance]. We must stay highly alert to this.” Only by mastering the core technology in our own hands can we truly grasp the initiative Xi Jinping Xi has also previously urged China to rely on itself for core technologies long before the so-called technology war began with the US. In a speech to China’s political consultants from the science and technology field in March 2013, Xi said that China should give up the “illusion” of sourcing high technologies from other countries. “Core technologies, especially national defence technologies, cannot be bought with money … Only by mastering the core technology in our own hands can we truly grasp the initiative in competition and development and ensure national economic security, national defence security and other safety,” he said.