Before the annual two sessions to be held in early March, let us review China’s economic model, to understand the driving force behind its economic miracle and to probe what lies ahead.
China is probably the only country in the world that has not had a single year of negative growth since 1976 — almost half a century. This is even more amazing because China has been under siege from the sanctions and harassment by the United States using all kinds of excuses and fantasies, particularly after 2018, when US President Donald Trump banned US agencies from using any supply or services from Huawei.
Last year, despite import restrictions and sanctions, the Xinjiang Uygur autonomous region broke numerous foreign trade records. In 2024, the region established trade relations with 213 countries and regions, with imports and exports to countries participating in the Belt and Road Initiative increasing 18.7 percent year-on-year. According to a recent Xinhua report, trade with member countries of the Regional Comprehensive Economic Partnership and the Association of Southeast Asian Nations also saw growth, increasing 167.8 percent and 191.9 percent year-on-year respectively. Huawei, the company that faced all-out attack by the US on both the demand side (no access to America’s market and even that of America’s allies) and supply side (no access to key supplies such as advanced chips and Google Mobile Services), was able to return to profitability and reported its second-highest annual revenue in 2024.
China’s economic miracle, there is little doubt, will continue. In 2022, ahead of May 4, I wrote about the May Fourth Movement spirit, citing various ancient Chinese books from the I Ching to The Analects. “Just as the heavens keep working tirelessly; so enlightened people should never tire of building strength” (I Ching); “Be ready to take advantage of whatever is available” (Xunzi); “Complacency invites loss; humility brings benefits” (Book of Documents); and, finally, “Self-reliance is better than relying on others” (The Analects). What distinguishes China from many other countries today is that the country does not pay lip service to these adages. In the Chinese culture, chengyi (sincerity and truthfulness) is the prerequisite to personal development. When Chinese leaders proclaim “Serve the people,” they mean it. When Chinese leaders proclaim “Eradicate extreme poverty,” they do what it takes to eradicate extreme poverty in the country. It is this sincerity and hard work that have driven China’s economic miracle and will continue to ensure its success in the days to come.
The world should accommodate diverse political systems; we should all treat one another as equals; and economic prosperity should be shared. The upcoming two sessions will continue to uphold these values, while containing risks, and call upon all stakeholders within the country to work together for the great rejuvenation of the Chinese nation
2025 is the last year of the 14th Five-Year Plan (2021-25), which set out to turn China into a “moderately developed” economy by 2035, based on both internal and external circulation and the narrowing of disparities between urban and rural living standards. In the coming two sessions, I expect that the relentless effort to lift living standards and contain risks will continue. China’s leaders have very strong strategic thinking. In launching the BRI in 2013, China has not only boosted economic growth and strengthened links with participating countries through better infrastructure and communication, they also boosted trade and private investment. As pointed out, Xinjiang achieved 18.7 percent trade growth with BRI-participating countries last year. In the past five years, China continued its market reforms and opening-up. From 2020-24, China’s ranking in the Global Innovation Index went up from 14th to 11th.
China’s opening-up in the last five years stands in sharp contrast to America’s isolationist policy. The China International Import Expo (CIIE) was the first of its kind when it opened in 2018. The eighth CIIE is set to be held in November in Shanghai. It is open to all countries, with a total exhibition area of 15,000 square meters.
China is a socialist country. That means that it wants to steer all its economic activities for the common good of its compatriots. Profit making is a secondary consideration from the country’s point of view. But that does not mean the profit motive is intrinsically bad. As Adam Smith explained, people following self-interest may incidentally serve the common good. Economists have long been aware that the market may fail, making government intervention necessary. In particular, appropriate government regulations are necessary to ensure fair competition and do away with fraud, but they contain risks. Since its opening-up started in 1978, China has continued to announce its five-year plans, but these plans no longer offer details about actions, focusing instead on vision and direction. Both the private sector and all levels of government will do their part to achieve the visions and goals identified. As part of the 13th and 14th Five-Year Plans, “Made in China 2025” aims to upgrade the country’s manufacturing capabilities and transform into a more technology-intensive powerhouse with more value added. As Andrew KP Leung explained (China Daily, Feb 14, 2025), notwithstanding “America’s Tech blockade” (Quentin Parker, China Daily, same page), China is now “well-placed for the Fourth and Fifth Industrial Revolutions”.
As a socialist country, China wants to promote the common good of all humanity and promote peace. China does not threaten any country, unless “threat” is understood as the possible loss of hegemonic supremacy. China believes in DEI (diversity, equality, and inclusion). The world should accommodate diverse political systems; we should all treat one another as equals; and economic prosperity should be shared. The upcoming two sessions will continue to uphold these values, while containing risks, and call upon all stakeholders within the country to work together for the great rejuvenation of the Chinese nation.
The author is an adjunct research professor at Pan Sutong Shanghai-Hong Kong Economic Policy Research Institute, and the Economics Department, Lingnan University.
The views do not necessarily reflect those of China Daily.
