Since the 18th National Congress of the Communist Party of China in 2012, socialism with Chinese characteristics has entered a new era. Confronted with swift shifts in the international environment — intensifying geopolitical tensions, a once-in-a-century pandemic, a global economic slowdown and rising protectionism — China, under the firm leadership of the CPC Central Committee with Xi Jinping at its core and guided by Xi's economic thought, has exercised strategic resolve. By insisting on high-quality development and constructing a new development pattern, China has pursued a steady course distinct from that of many other major economies, showing notable resilience and dynamism and achieving historic advances and transformations.

A fundamental change in development philosophy has raised the quality of growth. The Party has synthesized domestic and international experience and, creatively, articulated the new development philosophy of innovation, coordination, green development, openness and shared benefits. This framework has provided coherent answers to the theoretical and practical questions of China's development and has anchored the country's recent structural advance. Between 2012 and 2024, China's GDP rose from roughly 54 trillion yuan ($7.58 trillion) to nearly 135 trillion yuan. A November 2024 IMF analysis noted that China is marching toward a higher-quality, more balanced and more sustainable growth model.

Both supply and demand have been profoundly reconfigured, enabling a smooth handover from old to new growth engines. On the supply side, the economy has shifted from factor-driven expansion to innovation-led development: new technologies are spawning new business forms, industries and models. On the demand side, domestic consumption has become an ever-stronger driver; during the 14th Five-Year Plan period (2021-25) consumption's contribution to growth is expected to rise markedly while the role of investment recedes, making consumption a principal engine of current expansion.

Innovation is now the primary driving force and a source of national competitiveness. China's innovation performance has climbed substantially in recent years. It entered the Global Innovation Index's top 10 in 2025, reflecting rapid improvement in knowledge and technology outputs. In 2024, Chinese applicants filed 70,160 Patent Cooperation Treaty applications, the largest national total worldwide. These developments underscore the country's growing capacity to translate research and investment into tangible technological leadership.

Deeper, coordinated planning has delivered tangible gains across regions and between urban and rural areas. A national, integrated approach — treating the country as one strategic "game board" — has ensured coherent implementation of major regional initiatives: Beijing–Tianjin–Hebei coordination, Yangtze River Delta integration, the Guangdong–Hong Kong–Macao Greater Bay Area, the Yangtze River Economic Belt and ecological protection along the Yellow River, among others. China has eradicated extreme poverty and advanced comprehensive rural revitalization. Rural incomes have grown faster than urban incomes for several consecutive years; small and medium cities and numerous towns have emerged as new consumption hubs, transforming the urban–rural landscape and raising living standards.

The green transition has accelerated, embedding ecological goals at the heart of development. Since the 18th National Congress, China has been adhering to a high-quality development path that prioritizes ecological conservation and features a green and low-carbon mode. Carbon peaking and carbon neutrality objectives are integrated with pollution control and ecological restoration to synchronize environmental and economic policies.

Greater openness has broadened China's international influence. A proactive opening-up strategy, expanded institutional openness, the establishment of multiple pilot free trade zones and the construction of the Hainan Free Trade Port have deepened integration with the global economy. China is a principal trading partner for more than 150 countries and regions; its goods trade has repeatedly led the world and its inbound and outbound investment remain among the largest globally. The Belt and Road Initiative continues to function as a platform for international cooperation, and China's share of global economic output has risen substantially, creating opportunities for mutual benefit.

People's well-being has improved across sectors. Chinese modernization places people at its center: advances in childcare, education, employment, healthcare, elderly care, housing and social support have lifted living standards and strengthened public safety. In 2024, life expectancy reached around 79 years, and public perceptions of safety and social stability have improved alongside material gains.

Looking ahead, with the 14th Five-Year Plan drawing to a close and the 15th about to start, China will continue to consolidate these gains. Anchored by the target of basically realizing socialist modernization by 2035, the country is positioned to pursue further breakthroughs that deepen structural transformation, sustain innovation-led growth, accelerate green transition and broaden the fruits of development for its people and partners worldwide.

The article is an abridged translation of an article appearing in People's Daily.

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