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China & Five year plans

Chinese government uses five year plans to establish the path for the entire country.
The idea comes from the URSS five years plans, and they have been used since the early years of the PRC.

When compared with the industrial planning made by other countries, we can easily see few important details about Chinese five year plans:
1. Chinese planning is extensive as well as in-depth. There is a huge difference between doing a business that is involved in the current five year plan and doing something else;
2. The results brought by each five year plan are updated day by day, so both the Chinese government and citizens are well aware of the progress. If the progress is not going according to plan, it can be easily found out, and reform will be quite fast to be implemented;
3. Achieving the results of the five year plans is directly connected with internal stability, as it boosts the faith people have in their government. Just like in western world the governments that are being appreciated will usually be re-elected, in China local officers are betting their entire career on being able to fulfill the plans, or exceed them. In the same way, the central government is going to set incredibly audacious goals and then reach them no matter what. Reaching the objective will make Chinese people appreciate more their government. Most Chinese people do not care too much about politics as long as they can see and contribute to the improvement of their own lives.

Doing business in China is possible without even knowing about Five year plans, but knowledge about them can surely help.
The current five year plan, 2016-2020, is almost finished and, regardless of a world pandemic, Chinese government is set to fulfill all the points as promised.
Next one, no doubt about it, will be connected with the MADE IN CHINA 2025 initiative.

But why those plans are so important when compared with western style industrial plans?
In western societies, the government offers incentives for specific businesses and products. This helps to direct businesses in a clear direction: due to the variability of western government, though, it is hard to achieve consistent results if the party who is promoting them cannot govern for long time, as another party might feel priorities need to be shifted. This, combined with the necessity to make some short term sacrifices for long term prosperity, makes sure that only few western governments can seriously compare with the planning approach adopted in China.

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