Focus topics

Xi focuses favors national security over growth

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  • National security has always been emphasized by the Chinese government as an important factor to drive and shape China’s policymaking, including its economic policies.​
  • However, during the recent 20th Party Congress of China Communist Party (CCP), the definition and priority of “national security” was raised to an even higher level. One chapter of Xi Jinping’s report was dedicated specifically to a broadened concept of security.​
  • The report outlines a complete strategy of national security as the core of future policymaking and elaborates on the wide scope of policy categories falling under the primacy of security. ​
  • In this view, national security overarches almost every aspect of China’s society, from territorial completeness to food safety, from cybersecurity to financial security. Economic security also becomes a building block under a comprehensive national security concept.​
  • Consequently, a more comprehensive consideration of security issues as a shaping force of economic policy decisions needs to be expected, not only in the energy or food sectors, but more broadly in technology policies, financial policies and other sectors.​
  • In some cases, such national security concerns may prevail over economic growth considerations, leading to policies that damage the overall economic activities and thus business interests, e.g. in digital technology applications like ride-hailing.​
  • Many FIE activities in China will be affected by the shift, e.g. be subject to stricter security-based screenings and restrictions under the broadened security scope. ​

Sinolytics is a European research-based consultancy entirely focused on China. It advises European companies on their strategic orientation and concrete business activities in the People’s Republic.


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