Opening a New Chapter After 75 Years of Development

The year 2024 marked the 75th anniversary of the People’s Republic of China (PRC). Over the past 75 years, the Communist Party of China (CPC) has led Chinese people of all ethnic groups in uniting as one and forging ahead. Having secured great achievements in socialist revolution and development, reform and opening up, and socialist modernization, we have now ushered in a new era of socialism with Chinese characteristics. The Chinese nation has achieved a tremendous transformation from standing up and growing prosperous to becoming strong. Standing tall in the East, socialist China is now making great strides on a new journey to advance national rejuvenation through Chinese modernization.

I. Building the world’s second-largest economy and significantly boosting composite national strength

By building a vibrant socialist market economy well-suited to its national conditions, China has been able to release and develop the productive forces on a vast scale. As a result, the total economic aggregate and per capita GDP have risen by a significant margin, and composite national strength and international influence have increased considerably. 

Rapid economic growth has resulted in an unprecedented rise in economic strength 

In 1952, China’s GDP stood at just 67.9 billion yuan. By 1986, it had exceeded 1 trillion yuan, before surpassing 10 trillion yuan in 2000 and rising past 20 trillion yuan in 2006. Thereafter, GDP expanded by an additional 10 trillion yuan every one to two years to top 126 trillion yuan in 2023, solidifying China’s position as the world’s second-largest economy. When calculated in constant prices, China’s GDP in 2023 was 223 times higher than that in 1952, representing average annual growth of 7.9%.

A marked increase in per capita GDP has seen China move into the upper-middle-income category of countries 

In 1952, China’s per capita GDP was just 119 yuan. This figure has steadily increased thanks to many years of sustained efforts and development. In 2019, China’s per capita GDP exceeded US$10,000 for the first time, reaching 70,078 yuan, or US$10,158 at the annual average exchange rate. In 2023, per capita GDP reached 89,358 yuan, an 89-fold increase in real terms compared to 1952, with average annual growth of 6.5%. When calculated at the annual average exchange rate, this amounts to US$12,681, elevating China into the ranks of upper-middle-income countries.

An event to mark the seventh Chinese farmers’ harvest festival is held in Fangzheng County, Heilongjiang Province, September 22, 2024. PHOTO BY XINHUA REPORTER WANG SONG

China has become a leader in terms of composite national strength and has gradually increased its international influence

In the early days of the PRC, China’s economy was small in size, accounting for just a fraction of the world economy. However, through sustained economic development and the continuous reform and opening up, China’s economy has maintained a rapid rate of growth and gradually become an important engine and stabilizing force for the world economy. In 2023, China’s economic aggregate accounted for about 17% of the global total. Between 1979 and 2023, China’s average annual contribution to world economic growth was 24.8%, the largest of any country in the world. With this, China has become the world’s largest manufacturer, the largest trader of goods, the second largest consumer market, and the largest holder of foreign exchange reserves. All this has made it a vital participant, builder, and contributor in the international system.

II. Steadily developing basic industries and infrastructure and significantly enhancing the productive forces

China has achieved impressive results in the development of basic industries and infrastructure, continuously strengthening its capacity for industrial and agricultural production and energy supply. The unprecedented scale and speed at which it has invested in infrastructure has helped ensure a solid material and technological underpinning for economic and social development. 

Industrial and agricultural production capacity has increased dramatically, turning China into the world’s largest producer of major products

When the PRC was first founded, our industries were relatively limited in scope, and major industrial and agricultural products were in short supply. Driven by rapid industrial and agricultural development, grain production capacity has risen steadily. Total grain output increased from 113.2 million metric tons in 1949 to 695.4 million metric tons in 2023. China now leads the world in the output of grain, meat, fruits, and other agricultural products. Moreover, our country has built an independent and comprehensive modern industrial system equipped with a full range of industries. The added value of our manufacturing has ranked first globally for 14 consecutive years, and we lead the world in the production of over 40% of the world’s 500 major industrial products.

Visitors explore the ASEAN products exhibition area on the opening day of the 21st China-ASEAN Expo in Nanning, Guangxi Zhuang Autonomous Region, September 24, 2024. PHOTO BY XINHUA REPORTER HUANG XIAOBANG

We have continued to improve the national comprehensive and multidimensional transportation network and have moved into the lead in the construction of modern infrastructure 

China was hindered by its antiquated and inadequate transportation infrastructure when the PRC was founded in 1949. Tireless efforts since then have seen it building the world’s largest high-speed railway network, expressway network, and world-class ports. China leads the world in passenger and freight transport volume and port cargo throughput. At the end of 2023, the length of operating railways reached 159,000 kilometers, a six-fold increase on 1949; the length of highways reached 5.44 million kilometers, representing a 66-fold increase for the same period. China’s international logistics channels have expanded constantly, with the number of China Railway Express (CR Express) trips between Chinese and European destinations in 2023 rising nearly 10-fold compared to 2016.

Remarkable results have been registered in postal and telecommunications development, and China has become a leader in information and communications networks 

In the early years of the PRC, China’s postal and telecommunications networks were limited in scale and inefficient. In the 75 years since then, we have put in place the world’s largest postal express delivery network and fiber-optic and mobile broadband network. By the end of 2023, there were 468,000 postal service branches nationwide, the total length of fiber-optic cable lines had reached 64.32 million kilometers, and the number of internet access ports had risen to 1.14 billion. Since the 18th CPC National Congress in 2012, speed and efficiency have improved throughout the postal and telecommunications sector. From 2013 to 2023, revenue in the postal sector grew at an annual average rate of 20.4%. China has become a global leader in the construction of 5G networks, accounting for 60% of all base stations worldwide by the end of 2023.

The quality and quantity of energy supply have been increased, and our capacity to ensure energy security has been markedly enhanced 

Over the course of 75 years, China has gradually formed a diversified supply system driven by coal, oil, gas, nuclear, new energy sources, and renewable energy. Primary energy production increased from 20 million tons of standard coal in 1949 to 4.83 billion tons in 2023. During this time, raw coal output also rose from 30 million tons to 4.71 billion tons, crude oil production from 120,000 tons to 210 million tons, natural gas output from 10 million cubic meters to 232.4 billion cubic meters, and electricity output from 4.3 billion kilowatt-hours to 9.5 trillion kilowatt-hours. All of these improvements have helped turn China into the world’s largest energy producer. The transformation of energy technologies has been steadily advanced, with rapid development of clean energy. China has built the world’s largest clean energy production and supply system, and its installed renewable energy capacity accounts for nearly 40% of the global total. Clean energy consumption from sources such as natural gas and primary electricity increased from 3.1% of all energy consumption in 1957 to 26.4% in 2023.

III. Consolidating China’s position as a major economic and trade nation and fostering a new pattern of all-around opening up

Over the 75 years since the PRC’s founding, and particularly since the launch of reform and opening up in 1978, China has consistently applied the principles of independence and mutual benefit. On this basis, it has carried out explorations to forge a distinctively Chinese path to opening up and actively participated in international economic cooperation and competition. All this has allowed it to achieve a historic transformation from a country that was largely isolated into one that is open to the outside world.

China has consolidated its position as the world’s largest trader of goods, making substantive progress toward becoming a strong trading nation 

When the PRC was first founded, China’s industrial base was weak. Due to an economic blockade by Western countries, its international economic and trade exchanges were limited, with minimal trade in goods. Following the launch of the reform and opening up, and especially after its accession to the World Trade Organization, China quickly joined the wave of economic globalization. Foreign trade surged ahead, with the total volume of trade in goods in 2012 rising to 186 times the level for 1978. Since 2012, China has steadily consolidated its position as a major trading nation with a more proactive strategy of opening up. From 2013 to 2023, annual growth of total goods imports and exports averaged 4.0%, outpacing global trade growth by 1.6 percentage points. China’s international market share rose from less than 1% in 1978 to 12.4% in 2023, while its global ranking for trade in services rose from 34th place to 4th place.

China has become a world leader in terms of the scale of two-way investment, and the attractiveness of the Chinese market has continued to increase 

Over the past 75 years, China has steadily broadened market access for foreign investment, improved the business environment, and accelerated the pace of outbound investment. In 2023, China’s utilized foreign direct investment reached USD$163.3 billion, a 176-fold increase over 1983; non-financial outbound direct investment reached US$130.1 billion, 61 times higher than in 2003. Since 2012, the quality of two-way investment has further improved. In 2023, high-tech industries attracted 37.3% of total foreign investment, while non-financial direct investment under the Belt and Road Initiative accounted for nearly one-quarter of all such investment.

International economic cooperation and trade have been steadily deepened, with significant progress in opening up at the institutional level 

Since 2012, China has accelerated the development of new institutions for a higher-standard open economy, effectively expanding the space for international economic and trade cooperation. In 2023, China’s 22 pilot free trade zones accounted for 18.4% of the total import and export volume. The Hainan Free Trade Port, meanwhile, has maintained double-digit import and export growth for three consecutive years. China has signed more than 230 Belt and Road cooperation documents with more than 150 countries and over 30 international organizations. The CR Express now serves more than 200 cities in 25 European countries. In addition, major exhibitions, such as the Canton Fair, the China International Import Expo, and the China International Fair for Trade in Services, have steadily grown into important platforms for deepening international cooperation.

IV. Upgrading the economic structure and making development more coordinated

China’s primary, secondary, and tertiary industries have continued to grow in strength, and effective demand has expanded. Development between regions has steadily become more coordinated, and the integrated development of urban and rural areas has advanced at a rapid but steady pace. All this has gone a long way toward making economic development more sustainable.

Pictured here is the 60 millionth vehicle of FAW Group and at the same time also the 9 millionth truck of the FAW’s Jiefang series rolling off the production line in Changchun, Jilin Province, July 16, 2024. PHOTO BY XINHUA REPORTER YAN LINYUN

China has promoted the coordinated development of the primary, secondary, and tertiary industries, effecting a structural shift toward the medium-high end

Through rapid industrialization and urbanization, China has gradually moved away from the agriculture-dominated industrial structure of the early PRC, with the share of secondary and tertiary industries steadily increasing. Since 2012, the trends of coordinated development and upgrading have become much more evident in the industrial sector. In 2023, the share of the primary, secondary, and tertiary industries stood at 7.1%, 38.3%, and 54.6%, respectively. Looking at these sectors individually, modern agriculture has developed at a rapid pace. The value added of large high-tech manufacturing industries now accounts for 15.7% of the total for large industries as a whole. The value added of modern service sectors, such as information transmission, software, and information technology, is also accounting for a growing share of GDP.

Continuous structural improvements have enabled domestic demand to emerge as the main engine of growth 

At the founding of the PRC, China’s economic foundations were weak, and market demand was small. The three drivers of consumption, investment, and exports all contributed little to economic growth. As a result of continuous economic development, China’s demand structure has been continuously improved, especially since 2012, thanks to the implementation of the strategy to expand domestic demand. With this, domestic demand has increasingly become China’s main driver of growth. In 2023, final consumption expenditure, gross capital formation, and net exports of goods and services accounted for 55.7%, 42.1%, and 2.1% of GDP, respectively. From 2013 to 2023, domestic demand accounted for an average of 95.3% of economic growth, with final consumer expenditure contributing 53.9%.

Economic development between regions has become increasingly interconnected, with new growth poles exerting a noticeable impact 

Over the past 75 years, China has worked to innovate and improve policies on regional development, with a focus on promoting more balanced economic development between regions. Notably, since 2012, thanks to the full implementation of major regional strategies and the coordinated regional development strategy, a new pattern of regional development has quickly taken shape. Between 2013 and 2023, GDP in the central and western regions grew at an average annual rate of 6.9% and 7.1%, respectively, outpacing growth in the eastern region. In 2023, the Yangtze River Economic Belt and the Yangtze River Delta region accounted for 46.7% and 24.4% of China’s GDP, respectively.

The level of urbanization has steadily increased, and new results have been achieved in coordinated urban-rural development 

Immediately after the founding of the PRC, the divide between urban and rural areas was pronounced. The urbanization rate stood at just 10.64% at the end of 1949 and only 17.92% even at the end of 1978. Industrialization and the gradual relaxation of household registration restrictions have helped speed up the flow of production factors between urban and rural areas, greatly accelerating China’s urbanization process. By the end of 2023, the share of permanent urban residents in the total population reached 66.16%, an increase of 48.24 percentage points from the end of 1978. Since 2012, we have made consistent progress in promoting new urbanization and steadily implemented the strategy for rural revitalization, ensuring a greater balance in development between urban and rural areas. By 2023, the ratio of urban to rural per capita disposable income had shrunk to 2.39:1 from 2.88:1 in 2012.

V. Achieving impressive results in building a nation of innovators and promoting new growth drivers

China has always attached great importance to the role of innovation in its overall development and has regarded self-reliance and strength in science and technology as a strategic pillar of national development. It has gradually realized a historic shift from trailing the pack in innovation to keeping pace and even leading in some fields. Our country has grown into a strong sci-tech nation with significant global influence. 

The inputs for sci-tech innovation have been increased, and the national innovation system has been strengthened 

In the early years of the PRC, our scientific and technological capabilities were weak. However, through the steady implementation of strategies focused on issues such as invigorating China through science and education, sci-tech development has flourished. In 2023, China’s R&D expenditures exceeded 3.3 trillion yuan. Since 2013, it has been the world’s second-largest R&D investor, with the total spending reaching 2.64% of GDP, exceeding the average of EU countries. The full-time equivalent of R&D personnel has reached 7.24 million per year, 9.7 times higher than in 1991. By the end of 2023, China had the largest number of the world’s top 100 innovative sci-tech clusters, according to the World Intellectual Property Organization’s Global Innovation Index. The number of high-tech enterprises has exceeded 460,000. 

A steady stream of sci-tech innovations has continued to emerge, with the quality and quantity of outputs both rising 

Facing technical difficulties and an international blockade in the early days of the PRC, China was able to secure a number of pioneering achievements through arduous efforts. These are best represented by the development of an atomic bomb, guided missile, and artificial satellites—accomplishments that inspired the entire nation. Following the launch of reform and opening up, and especially since 2012, we have worked to advance the reform of the sci-tech system, underscoring the leading role of innovation. New breakthroughs have been made in areas such as manned spaceflight, lunar and Martian exploration, deep sea and deep earth probes, supercomputers, quantum information, and airliner manufacturing. China’s ranking on the Global Innovation Index rose from 34th place in 2012 to 12th place in 2023. China also leads the world in terms of the number of patent applications as well as international patent applications under the Patent Cooperation Treaty.

New drivers and strengths have been cultivated and enhanced, and the development of new quality productive forces has been accelerated 

Since 2012, China has made faster progress in creating new growth drivers and strengths. As a result, new productive forces have emerged, serving as a powerful driver and support for high-quality development. From 2013 to 2023, the added value of large equipment manufacturers and high-tech manufacturers grew at average annual rates of 8.7% and 10.3%, respectively. By the end of 2023, China had cultivated 421 national-level demonstration factories for smart manufacturing and over 10,000 provincial-level digital workshops and smart factories. Our digital economy has ranked second globally in terms of size for several years running. In 2023, the value added of new industries, new forms of business, and new business models accounted for 17.73% of GDP, 2.4 percentage points higher than in 2016.

VI. Steadily improving public wellbeing and ensuring people enjoy a stronger sense of gain, happiness, and security

By applying a people-centered development philosophy and addressing prominent issues of immediate concern to the people, China has made historic strides in raising living standards from bare subsistence to moderate prosperity in general and then moderate prosperity in all respects.

Long-term employment stability has been ensured, and the structure of employment has been improved 

With the continuous development of the productive forces over the past 75 years, China has been able to effectively promote employment expansion in step with economic development, registering steady growth in the job market in terms of both its size and quality. In 2023, the number of people in employment nationwide stood at 740.41 million, 3.1 times higher than in 1949. The secondary and tertiary industries accounted for 29.1% and 48.1% of total employment, respectively, an increase of 21.7 and 39 percentage points over 1952. Since 2012, the space for employment has continued to expand, and the employment situation has remained stable. This has helped ensure relatively full employment in our large country of more than 1.4 billion people. Between 2013 and 2023, a total of more than 140 million new urban jobs were created, and the urban surveyed unemployment rate remained stable.

Personal income has grown rapidly, leading to rising consumption levels

Over the past 75 years, China has continued to promote economic development and optimize the income distribution pattern, resulting in steady improvements in personal income and expenditure conditions. Notably, owing to an increase in China’s economic strength since the launch of reform and opening up, personal income has increased rapidly, and consumption levels have risen markedly. In 2023, the per capita disposable income of residents nationwide reached 39,218 yuan. After adjusting for pricing factors, this is equivalent to a 76-fold increase in real terms from 1949, representing an average annual increase of 6%. Per capita consumer spending, meanwhile, reached 26,796 yuan, a 36-fold increase in real terms from 1956, which is an average annual increase of 5.5%. The patterns of consumption have also improved, with durable consumer goods being upgraded at a faster pace. In 2023, services consumption accounted for 45.2% of total per capita consumer spending nationwide, an increase of 5.5 percentage points from 2013, while the number of cars and air conditioners per 100 households increased to 49.7 and 145.9 units, respectively

A multi-tiered social security system has been put into place, weaving a tight safety net for people’s wellbeing 

Over the past 75 years, China has established the world’s largest social security system from scratch. By the end of 2023, the number of people covered by basic old-age insurance nationwide had reached 1.066 billion, an increase of 1.009 billion from the end of 1989. The number of people enrolled in unemployment insurance and workers’ compensation schemes had risen to 244 million and 302 million, respectively, an increase of 164 million and 284 million from the end of 1994. Solid progress has been made in the construction of various types of government-subsidized housing, the development of elderly care services has accelerated, and the system for child welfare and the protection of minors has been continuously improved. All this has ensured that the social security net effectively meets people’s basic needs on a sustainable basis.

We secured a comprehensive victory in the battle against poverty, making a notable contribution to the global poverty reduction efforts 

Over the past seven decades and more, China has ceaselessly dedicated itself to reducing poverty. It has made continuous progress in advancing development-based poverty alleviation, promoting transformative changes in people’s lives. Following the 18th CPC National Congress in 2012, China identified poverty alleviation as a fundamental task in building a moderately prosperous society in all respects. By the end of 2020, after eight years of tireless efforts, China had accomplished the formidable task of eradicating absolute poverty, as all of its 98.99 million rural poor people and all of the 832 counties and 128,000 villages classified as poor had emerged from impoverishment. With this, China accomplished the poverty reduction target laid out in the UN’s 2030 Agenda for Sustainable Development 10 years ahead of schedule. This marked the completion of a new chapter in the history of humanity’s fight against poverty.

A visitor takes a photo of an Origin Wukong superconducting quantum computer model at the 2024 World Manufacturing Convention, September 20, 2024. PHOTO BY XINHUA REPORTER HUANG BOHAN

VII. Promoting social programs and improving public services

China has vigorously worked to develop all social programs, securing continuous progress in promoting social development. It has significantly improved education levels across society, steadily enhanced its public cultural service capacity, gradually improved the healthcare system, and registered remarkable results in competitive sports and public fitness.

Educational standards have continued to rise, ensuring faster progress in turning China’s demographic dividend into a talent dividend 

When the PRC was first established, over 80 percent of China’s population was illiterate. Thanks to the steady implementation of strategies to prioritize education, China’s overall level of educational development is now on par with upper-middle-income countries. In 2023, the gross enrollment rate for preschool education reached 91.1%, the student retention rate for nine-year compulsory education stood at 95.7%, and the gross enrollment rate of senior secondary education reached 91.8%. More high-level talent is also being trained at a faster rate. In 2023, China’s gross enrollment rate in higher education exceeded 60%, the highest in the world. The average length of schooling for the working-age population has now increased to 11.05 years.

Cultural programs have flourished, and China’s cultural soft power has steadily increased 

In seven and a half decades, China has gradually improved its cultural service facilities, providing strong support to meet people’s cultural needs. By the end of 2023, the number of public libraries and registered museums nationwide had increased 59-fold and 325-fold, respectively, compared to 1949; and the annual publication figures for all types of books had exceeded 10 billion copies for the year. The cultural industry has flourished, producing countless outstanding artistic works, while Chinese culture’s international influence has also continued to rise. By 2022, the value added of cultural and related industries had increased by 0.77 percentage points as a share of GDP compared to 2013. Total imports and exports of cultural products increased from US$88.8 billion in 2012 to US$162.2 billion in 2023.

Continuous progress has been made in improving medical and health programs and public health levels 

Over the past 75 years, China has enriched its medical resources and gradually established a sound healthcare system that effectively ensures access to basic medical services for all Chinese people. By the end of 2023, there were 1.07 million medical and health institutions nationwide, along with 12.49 million health professionals. Since 2012, reform of the medical and health system has been deepened, and the health of the general population has improved. By the end of 2023, 1.334 billion people were enrolled in the basic medical insurance scheme nationwide. Since 2018, the rate of coverage has held steady at over 95%. In 2020, life expectancy reached 77.93 years, an increase of 43 years compared to 1949. This figure is higher than the average for upper-middle-income countries.

Stellar progress has been made in sports and fitness programs, with competitive and mass sports improving in tandem 

Since the 1950s, China’s sports sector has progressed from a state of underdevelopment to all-round flourishing, achieving repeated success in competitive sports and making major strides in mass sports. In 1984, China participated in the Summer Olympics for the first time and claimed its first gold medal. In 2008, when Beijing successfully hosted the 29th Summer Olympic Games, China’s athletic delegation topped the gold medal table for the first time. In 2022, at the 24th Winter Olympic Games in Beijing, the Chinese team achieved new records for both gold medals and total medals. Between 1949 and 2023, Chinese athletes won a total of 3,913 world championships. The number of public fitness facilities and services has also increased continuously. By the end of 2023, China had a total of 4.593 million sports venues nationwide, covering a total area of 4.07 billion square meters.

Over the past 75 years of momentous development, China has secured remarkable achievements. The key to these achievements lies in resolutely following the CPC’s overall leadership, applying a people-centered approach, fully respecting the principal position and pioneering spirit of the people, firmly adhering to the path of Chinese socialism, remaining committed to furthering reform and opening up, regarding development as the top priority, and working constantly to release and develop advanced productive forces. All of this has enabled us to gradually turn people’s aspirations for a better life into a tangible reality.

(Originally appeared in Qiushi Journal, Chinese edition, No. 19, 2024)