Sweeping reforms redefine China's growth

Editor's note: Zhang Yu, a special commentator on current affairs for CGTN, is the director of the Economic and Trade Research Office at the National Academy of Economic Strategy of the Chinese Academy of Social Sciences. The article reflects the author's views and not necessarily those of CGTN.

China put forward more than 300 reform measures at the third plenary session of the 20th Communist Party of China (CPC) Central Committee in July, demonstrating its determination to foster a market-oriented, law-based and world-class business environment.

However, some Western critics are attempting to discredit China's reforms, accusing them of all thunder, no rain." Such a mentality reflects the fundamental divergence between China and the West in their reform philosophies.

For decades, U.S.-led Western countries have anticipated China to adopt liberal economic systems. This implies that, for certain Western observers, only reforms that align with transforming China into a capitalist country are recognized as "effective."

In contrast, China's reform strategy has a clear direction and guiding principles. "We must uphold the Party's overall leadership, Marxism, socialism with Chinese characteristics, and the people's democratic dictatorship while prioritizing social fairness, justice and enhancing people's well-being as both the starting point and ultimate goal," Chinese President Xi Jinping stressed on several occasions.

This approach means that, unlike Western countries that may pursue rapid changes at the expense of societal well-being, China has consistently adhered to a gradual approach to reform, tailored to its unique national conditions. It balances economic growth with social stability, placing careful planning ahead of immediate transformation.

The effectiveness of these reforms should be evaluated based on actual outcomes. The scope and results of China's latest reforms are unprecedented in its history and should not be dismissed simply because they do not meet Western expectations.

The latest round of reforms targets deeper systemic, mechanistic and institutional areas. For instance, in July this year, China pledged to "improve the institutions and mechanisms for fostering new, quality productive forces based on local conditions, promote the full integration of the real economy and the digital economy, develop the service sector, modernize infrastructure, and enhance the resilience and security of industrial and supply chains."

To date, China has established nearly 10,000 digital workshops and intelligent factories, with the number of cross-industry and cross-field industrial Internet platforms reaching 50, according to Xinhua News Agency.

The country has also developed 45 national advanced manufacturing clusters in information technology, high-end equipment, new materials, and energy. In Changzhou, Jiangsu Province, nearly 97 percent of all segments of power battery supply chain are present.

According to the National Bureau of Statistics, the output of China's high-tech manufacturing sector increased by 8.7 percent year-on-year in the first half of 2024, outpacing the overall industrial output growth by 2.7 percentage points. The first half of this year saw 39 out of China's 41 major industries register year-on-year growth. Undoubtedly, this accelerated growth is a direct result of China's reforms.

By discrediting China's efforts in deepening reforms, certain Western naysayers aim to deter international capital from entering the Chinese market. Additionally, as China's economic strength and international status continues to rise, global competition has gradually shifted from economic rivalry to institutional competition. In this context, many Western cynics who strive to maintain the "superiority" of Western economic systems regard any reform measure implemented by a socialist country as "ineffective."

Regardless of Western skepticism, China's growth has proven the vitality of its reforms.

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