China as many socialist countries , remember the Soviets 5 year plans, on manufacturing, farming..it seemed they had the plan for everything, not sure if they were met but they had the plans, and China also subscribes to them, however in their case, I think they basically work.
Depending on the times they will change them if another direction seems to be the way to go.
It seems they are now going to go another way again,.
From what I can understand , the last 30 years have been devoted to manufacturing goods , lots of labor intensive at a low price thus gaining world market manufacturing share due to low costs, earning lots of $, having people save as much as they can in personal savings, little spent on social services beyond the basics, naturally feeding all, investing earned sums, huge by the way, in foreign paper and over seas investments.
It seems that is going to change.
Due partly to less demand for their manufactured products because of depressed economic happenings by many of their customers, see Europe, USA, and other foreign countries, they are going to build up the consumerism of its own people to purchase these goods, raising wages, encouraging more service careers to service their own people, increasing social services to the people so they reason to save personally will be lessened, loosening the control; of keeping the populace tied to a certain local and allowing to move around the country more freely from the country side to urban areas, and increase the ownership of land to the farmers.
A big part of the employment will be in the industries of the 21st century that they are spendig billions on now so they will have the knowledge ansd honestly the lead in developing over the rest of the world.
All this will cost $ so there will be less $ available to buy foreign debt and the paper of foreign countries.
_---------------------------------------------------------
english.aljazeera.net/indepth/opinion/2011/02/2011224185710593188.html---------------------------------------------------------
Export led economic growth, based on cheap labour, has created vast inequalities [Reuters]
"In early March, China's National People’s Congress will approve its 12th Five-Year Plan. This plan is likely to go down in history as one of China's boldest strategic initiatives.
In essence, it will change the character of China’s economic model – moving from the export- and investment-led structure of the past 30 years toward a pattern of growth that is driven increasingly by Chinese consumers. This shift will have profound implications for China, the rest of Asia, and the broader global economy.
Like the Fifth Five-Year Plan, which set the stage for the "reforms and opening up" of the late 1970s, and the Ninth Five-Year Plan, which triggered the marketisation of state-owned enterprises in the mid-1990’s, the upcoming Plan will force China to rethink the core value propositions of its economy.
Premier Wen Jiabao laid the groundwork four years ago, when he first articulated the paradox of the "Four ‘Uns" – an economy whose strength on the surface masked a structure that was increasingly "unstable, unbalanced, uncoordinated, and ultimately unsustainable".
Re-balancing
The Great Recession of 2008-2009 suggests that China can no longer afford to treat the Four Uns as theoretical conjecture. The post-crisis era is likely to be characterized by lasting aftershocks in the developed world – undermining the external demand upon which China has long relied. That leaves China's government with little choice other than to turn to internal demand and tackle the Four Uns head on.
The 12th Five-Year Plan will do precisely that, focusing on three major pro-consumption initiatives. First, China will begin to wean itself from the manufacturing model that has underpinned export- and investment-led growth. While the manufacturing approach served China well for 30 years, its dependence on capital-intensive, labor-saving productivity enhancement makes it incapable of absorbing the country's massive labor surplus"
----------------------------------------------------------
{Click on link to read article}
