Five-Year Plans: China's key to success

Editor's note: Mei Xin is an observer of international affairs. The article reflects the author's opinions and not necessarily the views of CGTN.

In recent times, the international community has paid close attention to the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China. Many observers have noted that China's ability to formulate the Five-Year Plans with a systematic approach – and to implement them in a steady, sequential manner – has effectively rebutted claims that "planning inevitably fails" and "planning is outdated." Instead, China has developed a new model of policy planning and implementation that aligns long-term national strategies with the evolving dynamics of the global economy and taken on the following features:

Continuity: Unwavering commitment to long-term blueprint

From the First Five-Year Plan to the 14th one, a consistent overarching theme has guided China's policy trajectory: Building a modern socialist country.

During the first five "Five-Year" Plans of the People's Republic, the country transformed itself from an underdeveloped economy to one with an independent and relatively complete industrial system.

After the launch of reform and opening up, the sixth through 13th Five-Year Plans steered China through a historic transition toward a socialist market economy, culminating in the achievement of a moderately prosperous society in all respects.

By the seventh Plan, China had largely resolved the issue of subsistence. By the ninth Plan, the overall living standards had reached a moderately prosperous level. By the eleventh Plan, China had entered the ranks of upper-middle-income countries, establishing itself as the world's second-largest economy and a leading manufacturing power. Under the 13th Five-Year Plan, the goal of building a moderately prosperous society in all respects was fully realized. The outgoing 14th Plan marks further solid steps toward Chinese modernization.

Concentration: Pooling national resources on major tasks

This is the key to achieving major national goals – from landmark engineering projects to scientific breakthroughs, from targeted poverty alleviation to green development.

During the first Five-Year Plan, for instance, confronted with Western economic blockades, the newly founded People's Republic designated heavy industry as a top priority. By pooling the country's limited resources and focusing on key sectors such as steel, coal, and electric power, China laid the essential foundations for industrialization.

Poverty alleviation is another example: Under the 13th Five-Year Plan, rural poverty eradication was a binding goal. National policies – from finance and land to transport, water, education, and health care – were tilted toward 832 poor rural counties, helping lift more than 10 million people out of poverty every year.

Combination: An enabling government and an effective market

The Plans are market-friendly, providing macro-strategic guidance that complements the market's invisible hand with the visible hand of planning. This enables more efficient public resource allocation, mitigates short-term and fragmented market decisions, and fosters a healthier industrial ecosystem.

Consultation: Soliciting views from all sectors of society

China's five-year planning process features extensive public consultation. Following the principle of "drawing on the people's wisdom and soliciting their views," the 11th Five-Year Plan pioneered the practice of inviting public comments through the Internet.

During the drafting of the 14th Five-Year Plan, the competent authorities received over one million public submissions online.

In drafting the recommendations for formulating the 15th Five-Year Plan, online consultation received more than three million public inputs, generating over 1,500 actionable suggestions that were subsequently incorporated into policy deliberations.

Centering around the people: Advancing development for all

Each Five-Year Plan is designed with the people's aspiration for a better life as both its foundation and ultimate objective. In the 14th Five-Year Plan, seven of the 20 leading indicators focus on people's well-being, and more than 60 percent of central budgetary investment goes to livelihood sectors – especially in the central and western regions, the northeast, old revolutionary bases, ethnic minority regions, and remote border areas.

Country as a whole: A systematic approach

All Five-Year Plans follow a unified national framework that advances overarching national priorities while leveraging regional capabilities. This approach coordinates planning across levels and sectors to avoid redundant projects and homogenized competition. At the same time, regions are encouraged to tap into their unique endowments and comparative advantages, enabling complementary strengths and coordinated growth.                                                                      

Concrete actions: Making the difference

Effective execution is ensured through clear accountability, disaggregated tasks, defined timelines, and rigorous evaluation. For example, during the 14th Five-Year Plan period, all 17 major strategic tasks, 102 key initiatives, and more than 5,000 specific projects have been fully implemented as planned.

Calibration: Stable direction with adjustable targets

While maintaining a stable strategic direction, Five-Year Plans allow for calibrated adjustments to specific targets in response to evolving domestic and international conditions.

For instance, indicators related to people's livelihoods, public safety, and environmental protection are treated as binding commitments. These targets are generally not subject to downward revision; any proposed adjustment must be reviewed by the Standing Committee of the National People's Congress and publicly explained.

In contrast, targets that may be affected by technological shifts, external shocks, or fiscal constraints can be revised or replaced through formal procedures. Such flexibility helps to prevent planning from becoming disconnected from reality and supports efficient resource allocation amid changing circumstances.

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