![\"\"\/](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/2023_10_03_142902_1696308479.png\")
<\/p>\nhina\u2019s leaders are hard at work putting the finishing touches on the country\u2019s 15th Five-Year Plan. Meanwhile, since the beginning of his second term, United States President Donald Trump has issued a record 205 executive orders and signed only a handful of bills into law. The comparison is striking: While China has a strategic planning process, the US has neither a plan nor a strategy.<\/p>\n
The planning exercise is a foundational pillar of the People\u2019s Republic of China. The first plan ran from 1953 until 1957 and was strongly influenced by Mao Zedong\u2019s post-revolutionary relationship with Joseph Stalin. Over the ensuing years, the plans became more elaborate, as did the preparation process.<\/p>\n
The State Planning Commission that set Soviet-style industry targets in the early 1950s was eventually replaced by the National Development and Reform Commission. In addition to following the guidance of the Communist Party of China and drawing on the expertise of the ministries that comprise the State Council, the NDRC consults with outside academics and industry leaders. The gestation period for China\u2019s planning process is long: As soon as the National People\u2019s Congress approves a five-year plan, work on the next one commences.<\/p>\n
China\u2019s five-year plans have been far from perfect. The first four were unmitigated disasters, dominated by Mao\u2019s ideological zealotry and overreach. The second plan (1958-62) featured the catastrophic Great Leap Forward, while the fourth plan (1971-75) was shaped by the disastrous Cultural Revolution.<\/p>\n
It was not until the fifth plan (1976-80), which ushered in Deng Xiaoping\u2019s post-Mao reforms and opened up the economy, that the planning process became more proactive and focused on boosting growth and prosperity. The ninth plan (1996-2000) unleashed a wave of reforms to overhaul state-owned enterprises. The 11th (2006-10) and 12th plans (2011-15) laid the groundwork for China\u2019s consumer-led rebalancing strategy, an unfinished agenda item that many hope will be refined in the upcoming 15th plan (2026-30).<\/p>\n
By contrast, America abhors planning. The \u201cinvisible hand\u201d of the market, not government targets and directives, allocates the country\u2019s scarce resources. In theory, monetary and fiscal policymakers can guide and intervene in the US economy, aided by the interplay between executive and congressional authority over federal budgeting. But in practice, that process has all but broken down under intensifying political polarization.<\/p>\n
<\/p>\n
Every Thursday\n <\/p>\n
Whether you’re looking to broaden your horizons or stay informed on the latest developments, “Viewpoint” is the perfect source for anyone seeking to engage with the issues that matter most.<\/p>\n
for signing up our newsletter!<\/p>\n
Please check your email for your newsletter subscription.<\/p>\n