During the sixth plenary session of the 19th Communist Party of China Central Committee, there was a review of the history and major achievements of the CCP over the past century. From 1921 to 2021, the CCP led China to create countless economic miracles and long-term social stability.
China’s economic development began to transform in the early 1980s under the policy of reform and openness introduced by Deng Xiaoping. While retaining the main features of its state planning system, Deng began to experiment with elements of the market economy, including the return of entrepreneurship.
The Chinese economy has been guided by its unique system of governance. As the central government continues to lead the economy and maintain sustainable development, the private sector has also become very important.
Local governments often serve as bridges between central government and entrepreneurs. Local governments and incubation support often follow guidelines at the national level and frequently provide funding to businesses.
In addition, state enterprises and private enterprises coexist. Although they can sometimes have conflicts, they have a rather symbiotic relationship.
Under this system of governance, China has now become the second largest economy in the world. When COVID-19 started sweeping the world in early 2020, China was the only major economy in the world to experience positive growth. China’s GDP has grown more than 1,500 times since 1952. In addition, China is the world’s largest exporter and second-largest importer, contributing over 13% to the volume of world import trade and export. In addition, Chinese exports are moving more and more from the low end to the high end in the value chain.
With a commitment to structural reform from the supply side, China’s economic structure has continued to improve. In recent years, China’s service industry, especially sectors related to finance, science and technology, has become the backbone of the economy.
Meanwhile, China’s 14th Five-Year Plan (2021-25) and the dual circulation strategy will accelerate the establishment of a new development model in which domestic and foreign markets can strengthen each other.
The livelihoods of the Chinese have improved dramatically over the past four decades. During the same period, disposable income per capita has more than a hundredfold. In 2020, China had more than 5 million well-trained people in science and technology, leading the world with such numbers. It also overtook the United States to become the number one country in terms of international patent filings with the World Intellectual Property Organization.
As China continues to be the main engine of global economic growth, it has also become a hub of innovation. In the era of wireless internet, which began in the late 2000s, much of China’s business innovation was based on the consumer internet. China has now entered a new technological era in which “hard technologies”, such as semiconductors and new energy vehicles, are becoming mainstream.
In the first era of globalization (let’s call it “Globalization 1.0”), the West was the main center of demand and China was the main source of supply for a wide range of products.
As this continues in the second phase (“Globalization 2.0”), the rapidly growing middle-income group in China and the drive to upgrade business capabilities also make China a demand center, in addition to the ‘offer. This is how a strategy of dual circulation of national and international supply and demand emerges, consistent with the new economic policy.
In his centenary speech on July 1, President Xi Jinping spoke of the need to “make conscious efforts to learn the lessons of history in order to create a bright future.” He also said, “We must continue to adapt the basic principles of Marxism to the specific realities of China and its beautiful traditional culture.
This illustrates how China seeks its own modernity while adhering to the principles of socialism. Focused on the “great rejuvenation of the Chinese nation”, the Chinese leader advocates a “shared destiny for humanity”.
China has created an approach that addresses multiple dimensions as it pursues its search for modernity, while advancing in inclusive growth.
Source: China Daily