Scholars see continuity in blueprint and shift toward multicurrency world

China's newly unveiled five-year development blueprint has drawn global attention for its long-term vision, highlighting Beijing's emphasis on strategic planning and offering a sense of continuity amid heightened global uncertainty, scholars said at a forum in Beijing over the weekend.

United States economist Jeffrey Sachs praised China's significant progress with "forward thinking", saying it is beneficial not only for China but also for global stability.

Referring to the outline of the 15th Five-Year Plan (2026-30) for economic and social development, recently approved during what he called "very successful two sessions", Sachs said the next 10 years will be another "period of progress" for China, driven by continued advances in socioeconomic and technological development.

He was speaking at the forum, "Toward 2035: The grand strategies of the US and China in remaking our world", held at Renmin University of China.

Chinese economist Wu Xiaoqiu said the plan sets out clear priorities, including the development of six emerging industries and six future sectors, with a key focus on digitalization and artificial intelligence.

Over the past decade, China has achieved fundamental breakthroughs in 32 of 35 critical "bottleneck" technologies, providing momentum for further innovation, he said.

Despite a complex external environment, China's vast domestic market, complete industrial system and sustained technological innovation provide a solid foundation for long-term growth, said Wu, dean of the National Academy of Financial Research at Renmin University of China.

Sachs said that while China remains focused on development, the US is mired in "a crisis of a political system that is not working".

"The United States has no strategy for the next 10 years. We are very divided. There is no plan. … There is only political division," he said, pointing to a lack of consensus in Washington on key issues such as infrastructure and healthcare.

GDP comparison

While the US remains ahead in nominal GDP terms, Sachs said the figure is inflated. "Prices are much higher for services and this is why the GDP was much larger," said Sachs, director of the Center for Sustainable Development at Columbia University.

For instance, the US healthcare sector consumed 18 percent of its GDP in 2024, a 7.2 percent increase from the year before, according to the US Centers for Medicare & Medicaid Services.

"China is far ahead in production in many areas right now," Sachs said, adding that China's economy is already larger than that of the US when measured by purchasing power parity. "The living conditions (in the two countries) are not so different."

Emphasizing the need for cooperation, he said: "That fits the Confucian idea that the world should be harmonious ... (there) should be win-win cooperation. This is the right approach."

Sachs cautioned against the prevailing mindset in US politics to frame China as a "threat". "I don't believe China is an enemy in any way," he said.

He criticized the US pursuit of global dominance, saying it "has continued to produce conflict".

US military interventions in the Middle East are a "huge mistake" and the consequences are likely to be negative for many years to come, he said.

"We will be in a multipolar world. That's why I tell Americans not to worry about China. China is not a threat to the United States."

Sachs also projected a shift toward a "multicurrency world", in which the dollar is no longer the sole dominant international currency.

Given China's role as the top trading partner for more than 100 countries, Sachs said, "It is quite natural that trade should be renminbi-denominated rather than dollar-denominated."

He suggested that China continue to advance renminbi's internationalization and described the trend as "achievable".

Within 10 years, it is "realistic" for the currency to account for one-fourth of international trade settlements, Sachs said.

Wu from Renmin University of China called on China and the United States to compete and cooperate in an equal and transparent manner, jointly injecting stability into global economic governance.