On the 75th anniversary of New China, the nation reflects on its remarkable economic transformation and the significant improvement in living standards for its 1.4 billion people. Since the beginning of the reform and opening-up policy in 1978, China has witnessed an unprecedented economic miracle.
Disposable personal income in China rose from 171 yuan (approximately US$108) in 1978, following the Cultural Revolution, to nearly 40,000 yuan (approximately US$5,500) in 2023. This represents a leap of about 228 times in yuan terms and about 50 times in U.S. dollar terms.
At the onset of reforms, China was among the poorest countries globally, with a per capita GDP less than one-third of the average of African countries. From 1978 to 2023, the country sustained the longest and greatest economic growth in human history, with an average annual growth rate of 8.9%. No other nation has achieved such high-speed and consistent economic growth for such an extended period.
During this time, more than 770 million rural residents living below the poverty line were lifted out of poverty. Urbanization increased from under 20% in 1980 to over 65% in 2023. China has managed to feed nearly 20% of the global population with under 10% of the world’s arable land.
In every aspect of life, Chinese people have experienced spectacular improvements. High-speed railways expanded from barely more than 1,000 kilometers in 2008 to over 45,000 kilometers today, accounting for more than 70% of the global total. Advances in modern agriculture and biological breeding have bolstered food security. Reforms in healthcare and the implementation of national medical insurance have substantially improved public health. Green and low-carbon technologies have reduced pollution, enhancing environmental quality.
From 2013 to 2022, China added 130 million new urban jobs, averaging 13 million per year, and built the world’s largest social security system, enhancing people’s well-being and sense of security. As of September 2023, participants in basic pension, unemployment, and work-related injury insurance nationwide number 1.06 billion, 240 million, and 300 million respectively. Social security card holders total 1.377 billion, covering 97.4% of the population.
Despite obstacles and challenges along the way, China’s accomplishments have been remarkable. The nation is not resting on its laurels, recognizing serious challenges ahead, especially the long-term slowdown of its investment-led economy. In 2023, fixed capital formation remained above 40% of GDP, a level that is no longer sustainable or desirable. Continuous credit flows from the financial system can no longer support such high levels of fixed-asset investments.
Under the leadership of President Xi Jinping, China is pivoting towards prioritizing modernization through high-quality development and enhancing productive forces, particularly in science and technology. With a GDP accounting for nearly 17% of the world’s total, China’s growth target of around 5% contributes more than 30% of global growth, benefiting both the world and its own citizens.
Reference(s):
cgtn.com
