China’s leaders might have to adjust the upcoming five-year economic growth targets at the ruling Communist Party’s plenary session to be convened in late October, Reuters news agency reported, citing challenges due to the ongoing COVID-19 outbreak and the deteriorating relationship between Beijing and Washington.

In a Monday meeting held to study and formulate the 14th five-year plan for national economic and social development, the politburo decided to make amendments and submit the draft document to be approved at the Party’s Central Committee meeting between Oct. 26 and 29.

As the economy has been under stress because of the worsening United States-China conflict and the coronavirus epidemic, government think tanks and economists have lowered the recommended yearly economic growth target to “around 5%, 5-5.5% or 5-6%” for the upcoming five-year plan, Reuters said.

At the State Council Leading Group for SOE Reform meeting held on Sunday, vice premier Liu He proposed for the first time the idea of having a “strategic combination” of state-owned and private enterprises, in which the duo should work together and steer mergers and acquisitions.

China President Xi Jinping announced in 2015 that the average annual economic growth target set during the 13th five-year plan between 2016 and 2020 was 6.5%. China’s GDP growth was 6.1% last year.

In May, Beijing abandoned its practice of setting a yearly target for GDP growth for the first time in 18 years because of the unprecedented coronavirus outbreak that caused lockdowns of several major cities, such as Wuhan.

The next five-year plan is expected to be revealed at the annual meeting of China’s legislature, due to be held in early 2021.

Although the first plenary session sets out the major personnel changes for the five-year administrative term, the fifth serves as a window for further adjustment. Some of these changes will not only have a structural impact on the party, but also its development.

The plenum, convened by the party’s politburo, is held at least once a year, usually seven times within a five-year period. The 5th plenary session generally deliberates on national economic planning issues.

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