China's reform and opening-up: New model for developing countries?

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Editor's note: Gao Lei is an assistant professor at the Collaborative Innovation Center for Theoretical Research on Socialism with Chinese Characteristics at the University of International Business & Economics. The article reflects the author's opinion, and not necessarily the views of CGTN.

2018 marks the 40th anniversary of the Third Plenary Session of the 11th Central Committee of the Communist Party of China, the beginning of China's great cause of reform and opening-up.

Four decades ago, a group of old revolutionary veterans, with late Chinese leader Deng Xiaoping at the core, launched the landmark transformation and attempted to prove the advantage and superiority of socialist system to others.

Tencent's chief executive officer Pony Ma and Alibaba's co-founder and former executive chairman Jack Ma talk at the event celebrating the 40th anniversary of China's reform and opening-up at the Great Hall of the People in Beijing, December 18, 2018. /VCG Photo

Hardly did they know clearly toward which way they shall lead the country, yet what they did know was that once the arrow was released there was no turning back. Moving ahead is the only direction, and reform and opening-up shall always be on the way.

If we look back at the early years of China's reform, we would see a shortage of food. Coupons were still used for purchasing basic food items such as rice, flour, meat, cooking oil, eggs, etc. People waited in long queues for hours to buy items of daily use.

But gradually with the implementation of the reform and opening-up policy in rural areas, the country not only overcame food shortage but also lifted more than 500 million people out of extreme poverty. Later the reform was extended to urban sectors as well.

Back then, the whole society was transforming rapidly. Notable changes were visible every day. In downtown areas of each and every city, new roads were built and paved, pipelines of water, gas, and electricity were laid down, overpass bridges were built, well-equipped apartments and office buildings were constructed, and infrastructure was improving at a rapid pace. Now, China has become largely and quickly modernized.

Attendees of the event celebrating the 40th anniversary of reform and opening-up at the Great Hall of the People, Beijing, December 18, 2018. /VCG Photo

China's reform and opening-up over the past 40 years has not only transformed the country into the world's second-largest economy but it has also wielded increasing and valuable experience over the development path for other developing countries.

Among all the possible angles, at least the following three points should be highlighted. First, China has continually concentrated on alleviating poverty throughout the entire reform period. This is one of the distinguishable points between China and other industrialized countries in terms of the priority of development since the CPC always places the people in the center of its policy making and implementation.

Second, China's reform and opening-up program was the basis for the rapid growth that allowed people to lift themselves out of poverty, with hundreds of millions of rural citizens building better lives in ever-increasing urban centers.

Third, China has placed high importance on improving trade and business environment as it plans to further deepen reform and opening-up in the new era of high-quality development. Recently, the Chinese government been made efforts to integrate the country's domestic market and rise to advanced global trading and business standards.

China's long-term vision of socialism with Chinese characteristics is expected to be shaped by three structural transformations that are key in terms of their potential impact upon the developing world.

The first is a gradual structural slowdown that China is expected to undergo by shifting focus on quality rather than just quantity.

A special exhibition marking the 40th anniversary of China's reform and opening-up policy in Beijing's National Museum of China, December 18, 2018. /‍VCG Photo

The second concerns with a change in China's politico-economic structure, where patterns of expenditure, production, and employment as well as the relation between state and market are all expected to change significantly as China enters the new era.

The third involves technological sophistication and human capital intensity of production as China is expected to respond to rising wage pressures by moving up the value chain, and in doing so, also reshape its competitive advantage in the global marketplace.

Admittedly, the opportunities and challenges arising from these transformations will not be identical across developing economies, and they should design their own developing path based on their particular national conditions and not merely copy what China has done.

Combining theory with practice is the key to China's success, and this is the most valuable lesson to be shared with the rest of the developing world.

(If you want to contribute and have specific expertise, contact us at opinions@cgtn.com)