Overall, the 2026 Government Work Report (GWR) and the NDRC's Draft Plan for National Economic and Social Development strike a consistent and notably cautious tone.
We understand why neither China nor any communist group in the world today wants to use the Soviet system of central planning. But what other methods of truly central planning might there be? For example, a plan could allocate all major investment, designating specific amounts to specific areas of new production. The funds in each area would be drawn down by firms; this part of the procedure can be somewhat flexible.
In China, with all the officialese about guidance and percentage goals, it seems there is no overall allocation of investment. Chinese "planning" is not planning. It looks rather like industrial policy on steroids. Compare Chalmers Johnson's studies of industrial policy in Japan during its vigorous industrialization in the four decades after World War Two.
We understand why neither China nor any communist group in the world today wants to use the Soviet system of central planning. But what other methods of truly central planning might there be? For example, a plan could allocate all major investment, designating specific amounts to specific areas of new production. The funds in each area would be drawn down by firms; this part of the procedure can be somewhat flexible.
In China, with all the officialese about guidance and percentage goals, it seems there is no overall allocation of investment. Chinese "planning" is not planning. It looks rather like industrial policy on steroids. Compare Chalmers Johnson's studies of industrial policy in Japan during its vigorous industrialization in the four decades after World War Two.
Thanks for this analysis, Fred. Might you point us to where the full text of the GWR and NDRC Draft Plan can be secured?
Thanks in advance.
Bob
Here’s the NDRC: https://npcobserver.com/wp-content/uploads/2026/03/2026-NDRC-Report_NON-FINAL_EN.pdf
GWR: https://npcobserver.com/wp-content/uploads/2026/03/2026-Government-Work-Report_NON-FINAL_EN.pdf
Thanks….. my love for you knows no bounds!