China now faces three security issues: science and technology, energy and national defense.
1. Science and technology safety
Now it is in the high-speed development stage of 5G. 5G is not a simple 4G+ 1G, but a real qualitative leap. Just like in the process of our transition from 3G to 4G, the network speed is not only a little faster, but it has really expanded a new field-mobile Internet, which has taken off countless large enterprises and greatly changed all aspects of our lives. Behind these changes is money, which is giving birth to economic benefits.
It is conceivable that with the arrival of 5G, there will be more possibilities, and countries that lead the development of 5G will get huge dividends, which is also the main reason why companies such as Huawei are restricted.
Therefore, in order to break down technological barriers and solve technological security problems, China will focus on developing semiconductor and 5G sectors in the next five years.
2. Energy security
On the surface, the purpose of promoting the development of new energy is to protect the environment, but if a country wants to develop at a high speed, it must give up some aspects and control environmental pollution to a certain extent before it can develop. This is a more reasonable idea. Therefore, the purpose of promoting the energy revolution here is not only to protect the environment, but to solve the energy security problem.
China's oil production is small, but the demand is huge. Oil is a very important strategic material. Therefore, it is urgent to promote photovoltaic, wind energy, lithium batteries (new energy vehicles) and other sectors to replace oil and ensure self-sufficiency in a special period without this constraint.
3. National defense security
This logic is very simple, and it is good for the military sector without too much analysis. But every five-year plan has it, so it does not belong to the key development sector.
1. Double cycle
This year, the COVID-19 outbreak affected international trade. Therefore, the state put forward the concept of internal circulation, which will focus on developing the internal circulation of domestic economy and expanding domestic demand, which will be beneficial to consumption, medicine and other sectors. The main purpose of foreign circulation is reform and opening-up, which is the foundation of China's rapid development and is also beneficial to the consumption field.
2. Agricultural revitalization
Agriculture is the primary industry. Although the income of employees is lower than that of secondary and tertiary industries, agriculture is the foundation of all industries, and food is the foundation of the people. Therefore, China has been revitalizing agriculture.
3. Urbanization
Urbanization is an international trend, and people will flow from rural areas to towns. In this process, housing and infrastructure are needed, so it is good for infrastructure and building materials.
To sum up, the key development sectors of China in the next five years are: science and technology (semiconductors, 5G, new energy), consumption (compulsory consumption, optional consumption), and medical treatment (drugs, medical devices). Non-critical sectors are: military industry, agriculture and infrastructure. The former has a large room for development, so it is recommended that friends lay out in advance and focus on it. Because the latter is a cliche, the general certainty will rise in the fifth year, so you can hold bands or small positions before that.
The above content is based on the interpretation of the communiqué of the Fifth Plenary Session, which belongs to a simplified version. When the detailed announcement of the future "14th Five-Year Plan" is issued, it will be further interpreted. Remember to focus on the follow-up articles.
Author: Shao Ran Financial Team-Dai Shaoran