The driving force of China's economic development
Since the 18th National Congress of the Communist Party of China (CPC) in 2012, China has refined its economic governance mechanisms, strengthening both its economic power and technological capacity. When a country of over 1.4 billion people embarks on a path of transformation, every decision carries historical weight. The shift from "quantity" to "quality" is not just a change in terminology. It is a redefinition of the very philosophy of development. China, once a nation catching up, is now setting the pace. The key question is no longer "how to grow fast" but "how to grow right" — in a balanced, innovative and sustainable way.
China's gross domestic product (GDP) reached 140 trillion yuan (about 20.01 trillion US dollars) in 2025, with per capita GDP exceeding 13,000 US dollars, cementing its position as the world's second largest economy and accounting for about one sixth of global output. Its contribution to global economic growth has steadily remained at around 30 percent. After decades of rapid growth, China has encountered deep rooted structural issues, including an unbalanced industrial structure, environmental constraints and persistent urban rural income disparities.
To address these challenges, Chinese President Xi Jinping, also general secretary of the CPC Central Committee introduced a new development philosophy based on innovation driven, coordinated, green, open and shared development. This philosophy is designed to steer the Chinese economy towards high quality development and to advance a comprehensive reform agenda that enhances the efficiency of its socialist market economy.
Zhang Linshan, a researcher at the Academy of Macroeconomic Research under the National Development and Reform Commission, said: "In the world's largest developing country, home to over 1.4 billion people, tackling unbalanced and inadequate development presents unprecedented contradictions, risks and challenges, and represents a major test for governance. It requires far sighted strategic vision, comprehensive strategic wisdom and unwavering resolve to effectively navigate the complexities of China's economy."
In recent years, China has pursued deep structural reforms as a driving force for economic progress. The country has made significant strides in scientific and technological innovation, climbing from 34th to 10th place in the Global Innovation Index. Technological innovation is driving industrial modernisation, enabling the rapid growth of new quality productive forces. This transformation is evident in emerging industries, where electricity output per kilowatt hour has nearly doubled, signalling a shift from traditional manufacturing to new sectors such as artificial intelligence and biomedicine.
Wu Zhenjie, Director of the Development and Planning Department at Hangzhou Electric Power Company under the State Grid Corporation, explained: "Around 2012, nearly 80 percent of the economic value generated per kilowatt hour of electricity came from traditional manufacturing, with textile printing and dyeing, chemical engineering and metallurgy as the main contributors. Now, electricity is increasingly channelled to more than a dozen new industrial clusters, such as artificial intelligence, visual intelligence and biomedicine, which together generate nearly 80 percent of the economic value per kilowatt hour."
Today, China is experiencing high quality economic development driven by major projects such as the West to East Gas Pipeline, the South to North Water Diversion, the West to East Power Transmission and the East Data West Computing Initiative. These projects improve resource allocation across the country, while regions such as the Beijing Tianjin Hebei cluster, the Yangtze River Delta and the Guangdong Hong Kong Macao Greater Bay Area are fostering coordinated regional development.
China has also established 23 pilot free trade zones and expanded unilateral visa free access to 50 countries. The signing of 24 free trade agreements with 31 countries and regions, together with the advancement of the Belt and Road Initiative, further underscores China's commitment to strengthening its global economic role, creating new growth drivers and generating advantages for high quality development.
140 trillion yuan in GDP, 13,000 dollars per capita, 30 percent contribution to global growth — these figures are impressive. But behind them lies more than arithmetic. They are the result of systematic efforts to restructure the economy. As electricity flows from textile factories to AI hubs, and gas moves west to east while data moves east to west, China is no longer just the "world's factory." It is becoming its laboratory. And every new step in this transformation is not just reform — it is a bid for leadership in the 21st century.
As reported by CCTV+, China's structural reforms and innovation driven policies continue to shape a sustainable model of high quality development, opening new horizons for the economy and society.
