The Achievements and Lessons of New China’s Economic Development

“The river is wide at high tide, and the wind fills the sail just right.” [1]1 The 18th National Congress of the CPC: Held in November 2012, it marked the beginning of the New Era under Xi Jinping’s leadership. The 75-year course of economic development and institutional innovation since the founding of New China fully demonstrates the significant advantages of the leadership of the Communist Party of China and the system of socialism with Chinese characteristics.

“潮平两岸阔，风正一帆悬”。新中国成立75年来的经济发展与制度革新历程，充分彰显中国共产党的领导和中国特色社会主义制度的显著优势。

This year marks the 75th anniversary of the founding of the People’s Republic of China. Seventy-five years is but a moment in the course of human development, yet under the unfavorable conditions of scarce per capita resources and fierce international competition, the Chinese nation has accomplished the transformation from a backward agricultural country into an advanced industrial power, creating a miracle of economic development and social stability that has captured the world’s attention. From the period of socialist revolution and construction, through the new period of reform and opening up and socialist modernization, to the New Era of socialism with Chinese characteristics, these three historical periods are linked in a single lineage, successively completing the historical process of China’s economy from takeoff to rapid growth and then to transformation and upgrading. General Secretary Xi Jinping has pointed out: “Valuing history, studying history, and drawing lessons from history can bring humanity much wisdom for understanding yesterday, grasping today, and creating tomorrow.” [2]2 The battle against poverty: A major campaign launched by the CPC around 2015 to eradicate absolute poverty by 2020, involving targeted poverty alleviation measures. Reflecting on the past and the present, reviewing the economic miracle created over New China’s 75 years, and summing up historical experience, helps us to strengthen the Four Confidences and to promote the steady and long-term progress of Chinese-path modernization.

今年是中华人民共和国成立75周年。75年在人类发展进程中只是瞬间，但中华民族却在人均资源匮乏和国际竞争激烈的不利条件下，实现从落后农业大国向先进工业大国的转变，创造了世界瞩目的经济发展和社会稳定奇迹。从社会主义革命和建设时期到改革开放和社会主义建设新时期，再到中国特色社会主义新时代，三个历史时期一脉相承，接续完成中国经济从起步到腾飞再到转型升级的历史进程。习近平总书记指出：“重视历史、研究历史、借鉴历史，可以给人类带来很多了解昨天、把握今天、开创明天的智慧。”抚今追昔，回顾新中国75年创造的经济奇迹，总结历史经验，有助于我们坚定“四个自信”，推动中国式现代化行稳致远。

Safeguarding National Security Requires “Great Instruments” First

保障国家安全以“重器”为先

After the founding of New China, the national economy was rapidly restored. In 1953, China began large-scale economic construction, implementing the First Five-Year Plan. Influenced by the Korean War, and combined with the need to safeguard national security, our country prioritized the development of heavy industry, implementing a “catch-up strategy” to overtake economically developed countries, in order to achieve socialist industrialization.

新中国成立后，国民经济迅速恢复。1953年，中国开始大规模经济建设，实施第一个五年计划。受朝鲜战争影响，加之保障国家安全需要，我国优先发展重工业，实行赶超经济发达国家的“赶超战略”，以实现社会主义工业化。

To achieve a policy of high accumulation and social stability under conditions of low income, while rapidly advancing industrialization, China simultaneously carried out socialist transformation and established a planned economic system, thereby ensuring that limited resources were channeled to support industrial construction to the maximum extent. The advancement of socialist industrialization enabled China, in just over twenty years, to establish an independent and relatively complete national economic and industrial system, and to successfully develop cutting-edge weapons such as the “two bombs, one satellite” [3]3 The “dual-wheel drive” of the government and the market: A phrase describing China’s economic system, where both state planning and market forces play significant roles. and nuclear submarines, providing a strong guarantee for peaceful development. In terms of infrastructure, from its very inception, New China vigorously undertook water conservancy projects and advanced agricultural infrastructure construction. According to statistics, by 1978, a total of 84,585 large, medium, and small reservoirs had been built nationwide, 5,249 irrigation areas of over 10,000 mu [4]4 “All that is past is prologue”: A classical allusion from Shakespeare’s *The Tempest*, used here to frame past achievements as the foundation for future progress. had been constructed, and the effective irrigated area of farmland reached 48.053 million hectares, an increase of 32.125 million hectares compared to 1949. From 1953 to 1977, cumulative capital construction investment by units owned by the whole people in the transportation industry reached 84 billion yuan. Major projects such as the Qinghai-Tibet Highway, the Wuhan Yangtze River Bridge, and the Beijing-Shanghai Railway were successively completed, changing the backward and isolated transportation landscape. The state attached great importance to basic education. By 1978, primary school education was basically universalized nationwide, with the enrollment rate of school-age children reaching 95.5%. The achievements of this period laid the foundation for the subsequent reform and opening up and China’s economic takeoff.

为在低收入条件下实现高积累政策和社会稳定，中国在快速推进工业化的同时，实行社会主义改造，建起计划经济体制，从而确保有限资源最大限度支援工业化建设。社会主义工业化的推进，使中国在短短20多年里建立起独立的比较完整的国民经济体系和工业体系，成功研制“两弹一星”与核潜艇等尖端武器，为和平发展提供坚强保障。在基础设施方面，新中国自成立伊始就大力兴修水利工程，推进农业基础设施建设。据统计，截至1978年，全国各地共建成大中小型水库84585座，建成万亩以上的灌溉区5249处，农田有效灌溉面积达到4805.3万公顷，较1949年增加3212.5万公顷。1953—1977年，交通运输业全民所有制单位基本建设投资累计完成840亿元，先后建成青藏公路、武汉长江大桥、京沪铁路等重大项目，改变了落后闭塞的交通面貌。国家高度重视基础教育，1978年，全国基本普及小学教育，学龄儿童入学率达到95.5%。这一时期取得的成就，为日后改革开放和中国经济腾飞奠定基础。

While adopting the strategy of prioritizing the development of heavy industry, our Party did not neglect the reasonable development of agriculture and light industry. In February 1957, Comrade Mao Zedong, in his speech “On the Correct Handling of Contradictions Among the People,” specifically discussed China’s path of industrialization: “The question of the path of industrialization discussed here mainly concerns the relationship between the development of heavy industry, light industry, and agriculture. Our country’s economic construction takes heavy industry as its center; this point must be affirmed. But at the same time, full attention must be paid to the development of agriculture and light industry.” In October, Comrade Mao Zedong pointed out at the Third Plenary Session of the Eighth Central Committee of the CPC: “Speaking of the relationship between agriculture and industry, of course, taking heavy industry as the center and prioritizing the development of heavy industry – this point is beyond question and unshakable. But under this condition, industry and agriculture must be developed simultaneously, and a modernized industry and a modernized agriculture must be gradually established. In the past, we often spoke of building our country into an industrial country, but this actually also includes the modernization of agriculture.”

采取优先发展重工业战略的同时，我们党没有忽视农业和轻工业的合理发展。1957年2月，毛泽东同志在《关于正确处理人民内部矛盾的问题》讲话中专门论述中国工业化道路：“这里所讲的工业化道路的问题，主要是指重工业、轻工业和农业的发展关系问题。我国的经济建设是以重工业为中心，这一点必须肯定。但是同时必须充分注意发展农业和轻工业。”10月，毛泽东同志在中共八届三中全会上提出：“讲到农业与工业的关系，当然，以重工业为中心，优先发展重工业，这一条毫无问题，毫不动摇。但是在这个条件下，必须实行工业与农业同时并举，逐步建立现代化的工业和现代化的农业。过去我们经常讲把我国建成一个工业国，其实也包括了农业的现代化。”

Reform and Opening Up Propels Rapid Economic Development

改革开放推动经济飞速发展

The single public ownership system and the planned economic system broke through the “poverty trap,” ensured social stability under the high accumulation policy, and made historic contributions in areas such as establishing an independent and complete industrial system, safeguarding national defense security, and reserving development factors. However, various positive factors for economic development had yet to be further mobilized, the goal of improving overall economic efficiency had not been achieved, and the people’s living standards had not been significantly improved; per capita income and consumption levels remained relatively low. A strong sense of urgency solidified China’s determination for reform and opening up. The Third Plenary Session of the Eleventh Central Committee of the CPC [5]5 The Third Plenary Session of the 20th Central Committee of the CPC: Held in July 2024, this meeting focused on deepening reforms to advance Chinese-path modernization. opened a new journey of reform and opening up. From then on, China entered an era of surging vitality and flowing wealth.

单一公有制和计划经济体制突破了“贫困陷阱”，保障了高积累政策下的社会稳定，为建立独立完整的工业体系、保障国防安全、储备发展要素等方面作出历史性贡献。但是，经济发展的各种积极因素还有待进一步调动，整体经济效益提升的目标还没有实现，人民的生活水平并未得到显著提升，人均收入和消费水平仍旧维持在较低状态。强烈的忧患意识坚定了中国改革开放的决心。党的十一届三中全会开启改革开放新征程。自此，中国迎来活力迸发、财富涌流的时代。

Our country actively implemented the policy of reform and opening up, fully utilized the favorable international situation, fully stimulated the positive factors of all parties, and vigorously promoted the coexistence and development of multiple economic sectors. Our Party, “taking economic construction as the central task,” successfully constructed a socialist market economic system, enabling the “invisible hand” to play an increasingly important role in resource allocation. At the same time, the government, as the “visible hand,” played a more active role in key areas such as attracting investment and institutional innovation, forming synergy and complementarity with the market mechanism, and jointly stimulating the vitality of factors such as capital, labor, resources, and technology. After joining the World Trade Organization, our country fully utilized foreign resources and international markets, achieving leapfrog economic development. This policy approach of “dual-wheel drive” by government and market, and overall planning of domestic and foreign resources and markets, provided an important guarantee for China to create a world-renowned miracle of economic development.

我国积极实施改革开放政策，充分利用有利的国际形势，充分激发各方积极因素，大力推动多种经济成分并存发展。我们党“以经济建设为中心”，成功构建起社会主义市场经济体制，使“看不见的手”在资源配置中发挥日益重要的作用。同时，政府这只“看得见的手”在招商引资、制度创新等关键领域发挥更加积极的作用，与市场机制形成协同互补，共同激发资本、劳动力、资源、技术等要素的活力。加入世界贸易组织后，我国充分利用国外资源和国际市场，实现经济的跨越式发展。这种政府与市场“双轮驱动”、国内国外资源与市场统筹兼顾的方针政策，为中国创造举世瞩目的经济发展奇迹提供了重要保障。

From 1978 to 2012, China’s total economic output grew at an average annual rate of nearly 10%. In 1978, China’s gross domestic product was 367.87 billion yuan, ranking 11th in the world; in 1986, this figure broke through the 1 trillion yuan mark, rising to 9th place internationally; in 2000, it exceeded 10 trillion yuan, moving up to 6th place in the world; in 2010, it surpassed 40 trillion yuan, ranking 2nd in the world. Along with rapid economic growth and the deepening of industrialization, China’s industrial structure also achieved continuous upgrading. Furthermore, China’s urbanization rate increased significantly, from 17.92% in 1978 to 52.57% in 2012, with the urban population exceeding the rural population, becoming an important indicator of China’s social and economic development.

1978年至2012年，中国经济总量年均增速近10%。1978年，中国国内生产总值为3678.7亿元，位列世界第11位；1986年，这一数值突破1万亿元大关，国际排名升至第9位；2000年，突破10万亿元，排名提升至世界第6位；2010年，更是突破40万亿元，位居世界第2位。伴随着经济快速增长和工业化深入推进，中国的产业结构也实现持续升级。此外，中国的城市化率大幅提升，从1978年的17.92%增长至2012年的52.57%，城市人口超过农村人口，成为中国社会经济发展的重要标志。

During this historical period, China created an economic development miracle. However, as our country’s industrialization advanced further, the economic development model dominated by extensive expansion became increasingly constrained by resource and environmental factors. The demand stimulus policies implemented since 2008 alleviated the impact of the financial crisis on China to some extent and ensured stable economic growth, but they also triggered a series of problems such as overcapacity in traditional industries, inventory accumulation, and a rising leverage ratio. If the old economic development model were allowed to continue, it would exacerbate the trend of the economy “shifting from real to virtual” [6]6 “The tide is flat, the banks are wide; the wind is fair, a single sail hangs high”: A poetic couplet from Tang dynasty poet Wang Wan’s “A Mooring Under North Fort Hill,” used metaphorically to describe favorable conditions for progress. and losses for real enterprises, potentially leading to debt defaults, bankruptcies, unemployment, and even triggering a systemic financial crisis, with the economy facing the risk of a hard landing. These problems were concentratedly reflected in the phenomenon of the “three-phase superposition” [7]7 The second centenary goal: The goal of building China into a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious, and beautiful by the middle of the 21st century, marking the centenary of the founding of the People’s Republic of China in 2049. after 2012: the period of growth rate shift, the period of painful structural adjustment, and the period of digestion of previous stimulus policies.

这一历史时期，中国创造了经济发展奇迹。然而，随着我国工业化进一步推进，以外延型扩张为主导的经济发展模式日益受到资源和环境因素制约。自2008年起实施的需求刺激政策，一定程度上缓解金融危机对中国的冲击，保证了经济平稳增长，但同时引发传统产能过剩、库存积压、杠杆率攀升等一系列问题。如果继续放任旧的经济发展模式，将加剧“脱实向虚”趋势以及实体企业亏损，可能引发债务违约、破产失业，甚至诱发系统性金融危机，经济面临硬着陆风险。这些问题集中反映为2012年以后增长速度换挡期、结构调整阵痛期与前期刺激政策消化期“三期叠加”现象。

The New Era Initiates High-Quality Development

新时代开启高质量发展

Since the 18th National Congress of the CPC, our country’s industrialization has been basically completed, and the principal contradiction in society has undergone profound changes. A shift in the speed of economic development and an upgrade of the industrial structure are imperative; we must transition from high-speed development to high-quality development. Against this backdrop, our country’s economy has entered a new stage of development. Facing the “three-phase superposition” problems of economic development, the Party Central Committee with Comrade Xi Jinping at its core, with great foresight and timely assessment of the situation, deeply grasped the major changes in China’s principal social contradiction, and coordinated the overall strategic plan for the great rejuvenation of the Chinese nation with the changes unseen in a century in the world. Taking innovation as the driving force and reform to promote development, it has achieved world-renowned economic development accomplishments.

党的十八大以来，我国工业化基本完成，社会主要矛盾发生深刻变化。经济发展速度换挡、产业结构升级势在必行，我们必须由高速度发展转向高质量发展。在这一背景下，我国经济迈入新的发展阶段。面对经济发展的“三期叠加”问题，以习近平同志为核心的党中央高瞻远瞩、审时度势，深刻把握中国社会主要矛盾发生的重大变化，统筹中华民族伟大复兴战略全局和世界百年未有之大变局，以创新为动力、以改革促发展，取得举世瞩目的经济发展成就。

Since the 18th National Congress of the CPC, China’s economic strength and comprehensive national power have risen significantly, reaching a new historical height. From 2012 to 2023, the gross domestic product increased from 51.9 trillion yuan to 126.1 trillion yuan, more than doubling in 11 years; from 2012 to 2023, per capita GDP rose from 39,771 yuan to 89,424 yuan, approaching the World Bank’s high-income country standard. In 2020, the battle against poverty achieved a comprehensive victory, thoroughly resolving the absolute poverty problem that had plagued the Chinese nation for thousands of years. The coverage of social security has continuously expanded, building the world’s largest social security system, with basic medical insurance covering 1.33 billion people and basic old-age insurance covering 1.07 billion people. In terms of industrial structure optimization and upgrading, the pace of agricultural modernization has accelerated, and food security has been ensured; the scale and added value of the manufacturing industry have ranked first in the world for many years, accounting for a stable share of about 30% of the global total, with the output of more than 220 types of industrial products ranking first in the world; the modern infrastructure system has been accelerated and continuously improved, building the world’s largest high-speed railway network, expressway network, and world-class port cluster; China’s installed power generation capacity and internet infrastructure scale both rank first in the world; information infrastructure has been accelerated and upgraded, 5G network construction is globally leading, the national computing power network is being accelerated, and the total computing power scale ranks second in the world.

党的十八大以来，中国经济实力与综合国力显著跃升，达到新的历史高度。2012—2023年，国内生产总值从51.9万亿元增加到126.1万亿元，11年间增长了一倍多；2012—2023年，人均国内生产总值由39771元增加到89424元，接近世界银行的高收入国家标准。2020年脱贫攻坚战取得全面胜利，彻底解决困扰中华民族几千年的绝对贫困问题。社会保障覆盖面持续扩大，建成世界上规模最大的社会保障体系，基本医疗保险覆盖13.3亿人，基本养老保险覆盖10.7亿人。在产业结构优化升级方面，农业现代化步伐加快，粮食安全得到保障；制造业规模和增加值多年位居世界首位，占全球比重稳定在30%左右，220多种工业产品产量居世界第一；现代化基础设施体系加快建设并持续完善，建成全球最大的高速铁路网、高速公路网和世界级港口群；中国的发电装机容量、互联网基础设施规模均居世界第一；信息基础设施加快升级，5G网络建设全球领先，国家算力网络加快构建，算力总规模居世界第二。

In September 2020, the National Supercomputing Center in Chengdu was officially put into operation. Its host performance is outstanding, ranking among the top ten in the world, providing strong computing power support for China’s scientific research and industrial development, and significantly promoting the construction and development of China’s information infrastructure.

2020年9月，国家超级计算成都中心正式投入运营，其主机性能卓越，跻身世界前十之列，为我国科研和产业发展提供了强大算力支撑，显著推动我国信息基础设施建设与发展。

China’s industrial structure optimization and upgrading and high-quality development still face many difficulties, but the advantages and favorable conditions possessed by China’s economic development outweigh the unfavorable factors and difficulties. First, the leadership of the CPC ensures that China’s economy always moves forward steadily in a direction conducive to developing productive forces, enhancing comprehensive national power, and improving the people’s living standards. Second, the institutional advantage of the “dual-wheel drive” of the government and the market fully utilizes both domestic and international “two types of markets and two types of resources.” Third, China’s economy has a large volume, a large space for innovation, and a large room for maneuver. Fourth, China has abundant human capital, a cultural tradition that values education and hard work, not only strong learning ability but also an extremely high labor participation rate. These advantages will all play a huge role in industrial structure optimization and upgrading and high-quality development.

中国产业结构优化升级和经济高质量发展还面临诸多困难，但是中国经济发展所具备的优势和有利条件大于不利因素和困难。一是中国共产党的领导，确保中国经济始终向着有利于发展生产力、增强综合国力、提高人民生活水平的方向坚定前行。二是政府与市场“双轮驱动”的体制优势，充分利用国内和国际“两种市场、两种资源”。三是中国经济体量大，创新空间大，回旋余地大。四是中国人力资本雄厚，具有重视教育和吃苦耐劳的文化传统，不仅学习能力强，而且劳动参与率极高。这些优势都会在产业结构优化升级和高质量发展中发挥巨大作用。

History Illuminates the Future

历史昭示未来

All that is past is prologue. Since the 18th National Congress of the CPC, the Party Central Committee with Comrade Xi Jinping at its core, on the basis of long-term exploration and practice since the founding of New China, especially since reform and opening up, through theoretical and practical innovation and breakthroughs, has successfully advanced and expanded Chinese-path modernization, scientifically answered the questions of China, the world, the people, and the times, and achieved the goal of building a moderately prosperous society in all respects. Currently, changes unseen in a century in the world are accelerating, and the characteristics of changes in the world, the times, and history are becoming more pronounced. China’s development faces new strategic opportunities, new strategic tasks, new strategic stages, new strategic requirements, and new strategic environments. The risks and challenges to be addressed, and the contradictions and problems to be resolved, are more complex than ever before.

凡是过往，皆为序章。党的十八大以来，以习近平同志为核心的党中央，在新中国成立特别是改革开放以来长期探索和实践基础上，经过理论和实践上的创新突破，成功推进和拓展了中国式现代化，科学回答中国之问、世界之问、人民之问、时代之问，实现全面建成小康社会目标。当前，世界百年未有之大变局加速演进，世界之变、时代之变、历史之变的特征更加明显。我国发展面临新的战略机遇、新的战略任务、新的战略阶段、新的战略要求、新的战略环境，需要应对的风险和挑战、需要解决的矛盾和问题比以往更加错综复杂。

Currently, China’s economy has entered a stage of high-quality development, but it still faces prominent problems of unbalanced and inadequate development. For example, the market system is still not sound, market development is not yet sufficient, the relationship between the government and the market has not been fully straightened out, innovation capacity does not meet the requirements of high-quality development, the industrial system as a whole is large but not strong, comprehensive but not refined, the situation of key core technologies being controlled by others has not fundamentally changed, the agricultural foundation is still not solid, the gap in urban-rural regional development and income distribution is still large, and there are still shortcomings in people’s livelihood security and ecological environmental protection, among others. To further promote high-quality development and ensure the steady and long-term progress of the Party and state’s undertakings, the Third Plenary Session of the 20th Central Committee of the CPC adopted the “Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reform and Promoting Chinese-Path Modernization.” The Decision focuses on leveraging the leading role of economic system reform, centering on the core issue of handling the relationship between the government and the market, placing the construction of a high-level socialist market economy system in a prominent position, and making scientific plans and overall arrangements for important issues such as key areas and critical links of economic system reform, improving the systems and mechanisms for promoting high-quality economic development, improving the macroeconomic governance system, and perfecting the systems and mechanisms for high-level opening up. This provides a solid guarantee and injects strong momentum into China’s high-quality economic development, and will surely lead China’s economy towards a brighter and more prosperous future.

当前我国经济已经迈入高质量发展阶段，但依然面临发展不平衡不充分的突出问题。比如市场体系仍不健全，市场发育还不充分，政府和市场的关系尚未完全理顺，创新能力不适应高质量发展要求，产业体系整体大而不强、全而不精，关键核心技术受制于人状况没有根本改变，农业基础还不稳固，城乡区域发展和收入分配差距仍然较大，民生保障、生态环境保护仍存短板，等等。为进一步推动高质量发展，推动党和国家事业行稳致远，党的二十届三中全会通过《中共中央关于进一步全面深化改革、推进中国式现代化的决定》。《决定》注重发挥经济体制改革牵引作用，围绕处理好政府和市场关系这个核心问题，把构建高水平社会主义市场经济体制摆在突出位置，对经济体制改革重点领域和关键环节、健全推动经济高质量发展体制机制、健全宏观经济治理体系、完善高水平对外开放体制机制等重要问题做出科学谋划和总体部署，为我国经济高质量发展提供坚实保障、注入强大动能，必将引领中国经济走向更加光明和繁荣的未来。

“The tide is flat, the banks are wide; the wind is fair, a single sail hangs high.” The 75 years of economic development and institutional innovation since the founding of New China fully demonstrate the significant advantages of the leadership of the CPC and the socialist system with Chinese characteristics. Under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, relying on the hardworking and eager-to-learn Chinese people, as well as the diverse social productive forces and the huge market, China will surely seize the opportunities of the times, effectively respond to various challenges, resolve various risks, properly handle the relationship between economic development and social stability, fully leverage the two core driving forces of reform and innovation, and march forward courageously towards the second centenary goal.

“潮平两岸阔，风正一帆悬”。新中国成立75年来的经济发展与制度革新历程，充分彰显中国共产党的领导和中国特色社会主义制度的显著优势。在以习近平同志为核心的党中央坚强领导下，依靠勤劳且善于学习的中国人民以及丰富多样的社会生产力和规模巨大的市场，中国必将把握时代机遇，有效应对各种挑战，化解各类风险，妥善处理经济发展与社会稳定的关系，充分发挥改革创新两大核心动力，向第二个百年奋斗目标勇毅前行。

Author: Wu Li, Institute of Contemporary China Studies, Chinese Academy of Social Sciences

作者：武力，中国社会科学院当代中国研究所

Online Editor: Jin Qiu

网络编辑：金秋