China's economic 'relay race'

The Resolution of the Third Plenary Session of the 20th Central Committee of the Communist Party of China outlines more than 300 reforms to be implemented over the next five years, reflecting Beijing's unwavering commitment to reform and opening up over the past 45 years.

Shanghai city. (Source: Getty Images)

Emphasizing the goal of "deepening and comprehensively expanding the reform process," international observers commented that this is a continuation and inheritance that prioritizes the vital interests of the Chinese economy on its path of development.

To become a socialist country

Long-term reform is inherently challenging. In Western countries, political candidates campaign with promises of change, but after one or two terms, even if reforms are implemented, there is no guarantee that their successor will not reverse them.

However, in a different way, the Chinese economy approaches reform as a “relay race,” with each generation of leaders “passing the baton” to the next.

The South China Morning Post recently noted that when Xi Jinping assumed the position of General Secretary of the Communist Party of China in 2012, the world's second-largest economy still faced many major challenges. Over the past 12 years, Beijing has strived to effectively address six key challenges: poverty, technological isolation and trade restrictions, pollution, corruption, economic hegemony, and crisis prevention. Of course, despite many achievements, the economy still has some problems, and these are precisely the targets Beijing desires for deeper and more comprehensive reforms in the next phase of development.

In its first challenge, by the end of 2020, Beijing declared it had achieved its poverty eradication goal a decade ahead of the United Nations' 2030 Sustainable Development Goals. Accordingly, between 2012 and 2020, tens of millions of Chinese people had escaped extreme poverty.

Facing the second challenge, responding to the "blockades" on high-tech and trade restrictions imposed by the US, China focused on achieving technological independence. From 2012 to 2023, China's scientific research spending as a percentage of GDP reached 2.64%, placing the country at the world's leading position in research investment. According to the Chinese Ministry of Industry and Information Technology, by 2023, the country had 465,000 high-tech enterprises, and the self-sufficiency rate for chips had exceeded 40%.

In the third challenge, Beijing is leading the world's largest emissions reduction initiative. In the past decade alone, China's energy consumption per unit of GDP has fallen by 26.8%, and its carbon dioxide emissions per unit of GDP have reportedly decreased by more than 34%. Sales of new energy vehicles could exceed 10 million units this year. Meanwhile, China's solar energy industry is considered among the world's leading, accounting for approximately 80% of global capacity.

Addressing corruption is the fourth challenge Beijing is determined to overcome. From 2012 to 2022, China investigated nearly 5 million officials for corruption. This is considered a very important achievement for sustainable development goals.

Fifth, the world's leading economy affirmed that, despite being a nation that has launched many inclusive global initiatives, such as the Belt and Road Initiative (BRI), the Global Development Initiative (GDI), the Global Security Initiative (GSI), and the Global Civilization Initiative (GCI), Beijing is committed to equal cooperation, shared development, and mutual benefit with countries around the world.

Ultimately, to prevent a crisis, China enacted and amended more than 20 laws related to national security, addressed the real estate bubble, and cracked down on cybercrime and transnational fraud.

New trajectory

The Chongyang Institute for Financial Research has just published a report predicting the development trajectory of the Chinese economy over the next five years and beyond. With an optimistic outlook, researchers anticipate that by 2029, more than 40% of the world's top 500 companies will be Chinese.

China has the potential to surpass the US to become the world's largest economy by 2035. Average life expectancy in China could reach nearly 80, while basic health insurance and pension coverage will exceed 95%.

By 2029, it is projected that more than 100 countries will share a common visa-free agreement, unilateral visa exemption, or visa-on-arrival agreement with China. Approximately one-third of the population – over 400 million people – will travel abroad.

Regarding environmental issues, China is likely to achieve its carbon peak target ahead of schedule, leading global efforts to reduce emissions.

In its space and aerospace development goals, China aims to become one of the world's most comprehensive space programs, with plans to send astronauts to the moon. More importantly, by 2029, China hopes to achieve its goal of becoming a socialist country.

Analysts argue that China cannot sustain long-term economic growth without upgrading its development model to adapt to changing domestic and global circumstances. Therefore, Beijing's embarking on a new era of profound and comprehensive reforms through systematic plans will promote modernization and the realization of its economic rejuvenation, while simultaneously achieving high-quality development and improving people's livelihoods.

How has the world reacted to China's transformation, as it strives to further promote new forces in green technologies, artificial intelligence (AI), and semiconductors—factors crucial to a nation's growth and positioning in today's global economy?

In fact, an increasing amount of foreign direct investment is flowing into China's high-tech manufacturing sector, including from American and European investors, helping Beijing realize its reform goals.

Of course, in order to "join hands in cooperation," Beijing's partners have also adopted new ways of thinking and become more open to new forms of cooperation, in the same way that China is leading the trend of "joint development in global initiatives."

Source: https://baoquocte.vn/cuoc-dua-tiep-suc-cua-kinh-te-trung-quoc-282721.html