From 110 trillion to 140 trillion: What China's growth reveals

Editor's note: Xu Xuemei is an assistant research fellow at the Department for World Economy and Development, China Institute of International Studies (CIIS). The article reflects the author's opinions and not necessarily the views of CGTN.

July 1, 2026, marks the 105th anniversary of the founding of the Communist Party of China (CPC). The milestone also provides an opportunity to reflect on the progress made since another landmark moment in the Party's history. In 2021, the party celebrated its 100th anniversary and adopted the "Resolution of the CPC Central Committee on the Major Achievements and Historical Experience of the Party over the Past Century."

Since then, the CPC has continued to provide strategic leadership, guiding the Chinese people through an extraordinary journey at this historic juncture. This period has witnessed the acceleration of profound global changes, with China's internal conditions and external environment becoming increasingly intricate.

Internationally, the backlash against globalization and geopolitical conflicts have increasingly reinforced one another, leading to a profound restructuring of the global economic order. The spillover effects of the Russia-Ukraine conflict, the Israel-Palestine conflict and the US-Israel-Iran conflict have persisted. Meanwhile, strategic competition against China has intensified in the US and other Western nations. These developments have significantly heightened the risk of decoupling and supply chain disruption. Led by the United States, certain Western countries have formed anti-China cliques in high-tech, trade, investment and industrial regulations, subjecting China's economy to increasing challenges and uncertainties.

Domestically, China stands at a critical stage of transforming its growth model, optimizing its economic structure and shifting its growth drivers. The most prominent of these is the structural contradiction characterized by strong supply versus weak demand. 

Confronted with intensifying external headwinds and prominent internal structural contradictions, however, the Chinese economy demonstrated remarkable resilience and a trajectory of structural optimization.

According to the "Statistical Communiqué of the People's Republic of China on the 2025 National Economic and Social Development" released by the National Bureau of Statistics, China's Gross Domestic Product (GDP) successively surpassed the thresholds of 110 trillion ($15.4 trillion), 120 trillion, 130 trillion, and 140 trillion yuan in the 14th Five-Year Plan period (2021-2025), achieving a stair-step "fourfold leap" and well above the global average. In 2025, per capita GDP in China reached 99,665 yuan ($13,953 dollars). Significant progress was also observed in industrial upgrading, modern agricultural development, the expansion and quality enhancement of the service sector and a high-standard of opening up.

Together, these achievements not only attest to the resilience and potential of the Chinese economy but also indicate that the fundamentals underpinning its long-term positive trajectory remain in place. Underpinning this progress has been the CPC's strong leadership.

Against the backdrop of a turbulent international landscape, the CPC has adhered to implementing a broader, wider and deeper policy of opening up, focusing on constructing a new open economy system at a higher level. Both autonomous and unilateral opening measures have been expanded in an orderly fashion. On September 12, 2024, China declared that, starting December 1, 2024, a zero-tariff treatment would apply to 100% of taxable items originating from the least developed countries having diplomatic relations with China. In doing so, China became the first large developing country and major economy to implement such a measure.

Facing economic containment and technological blockades from the US and other Western nations using tariffs as leverage, China has adopted resolute countermeasures that are reasoned, proportionate and targeted, firmly safeguarding its sovereignty, security and developmental interests. Amidst the rise of unilateralism and protectionism, China remains a staunch defender and stabilizer of globalization.

Addressing domestic insufficient demand and structural transformation pressures, the CPC has strengthened both counter-cyclical and cross-cyclical adjustments in macro-policy, comprehensively implementing the new development philosophy.

The core focus lies in guiding the development of new quality productive forces through scientific and technological innovation to construct a modernized industrial system. New quality productive forces are defined as a key priority for fostering high-quality development, distinct from traditional growth paths. They are catalyzed by revolutionary technological breakthroughs and deep industrial transformation and upgrading, inherently possessing attributes of green, low-carbon development. 

Data from the 2025 Statistical Communiqué indicates that these forces are steadily maturing and have become a new engine for economic growth. In 2025, the value added by the equipment manufacturing industry increased by 9.2% year-on-year, high-tech manufacturing by 9.4%, and digital product manufacturing by 9.3%. These figures demonstrate that China's economy is accelerating its transition from factor-driven to innovation-driven growth.

2026 marks not only the 105th anniversary of the CPC, but also the inaugural year of the 15th Five-Year Plan (2026-2030), which holds a pivotal position in bridging the past and the future on the path to basically realizing socialist modernization. At this stage, the CPC must address structural bottlenecks constraining long-term economic growth domestically, while continuing to navigate the instability and uncertainty brought about by global geopolitical turbulence.

At the fourth plenary session of the 20th CPC Central Committee, the following guiding principles were established for economic and social development during the 15th Five-Year Plan period: upholding the Party's overall leadership; putting the people first; pursuing high-quality development; comprehensively deepening reform; promoting interplay between an efficient market and a well-functioning government; and ensuring both development and security.

Against this backdrop, the Chinese economy is well-positioned to navigate pressures and challenges in the years ahead. With the CPC providing strategic guidance, the country is expected to transform crises into opportunities, laying a stronger material and institutional foundation for basically achieving socialist modernization by 2035.

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