14 Five-Year Plans in China and Beijing’s Move to Become the World’s Second-Largest Economy.
According to Xinhua, 2025 is the final stage of China’s 14th Five-Year Plan (2021-2025). The plans prioritized qualitative development over traditional growth and development goals, reflecting the evolving priorities of the world’s second-largest economy.
As an important institution that embodies the unique advantages of China’s national governance system, the Five-Year Plans have been very effective in promoting the country’s development in all sectors over the past decades.
With the official opening of the two sessions this year on Tuesday, China’s national legislators and political advisors are set to review the country’s achievements and provide explanations on future plans. It will also provide a good opportunity to review the significance of China’s Five-Year Plans.
What is a Five-Year Plan?
The Five-Year Plans serve as a comprehensive blueprint for China’s economic and social development, setting out strategic goals and priorities for each planning cycle. Since the first Five-Year Plan (1953-1957), these plans have not only guided China’s transformative development but also evolved to meet the distinctive challenges of each period.
The 14th Five-Year Plan, after China achieved the goal of building a moderately prosperous society in all respects, began with a focus on quality development. While breaking away from tradition and not setting a specific GDP growth target, it instead prioritized green transition, technological self-reliance, common prosperity, balanced regional development, as well as deeper reform and opening up with high standards.
Yan Yilong, vice president of the Institute of Contemporary China Studies at Tsinghua University, said: “The early Five-Year Plans were mainly focused on economic development, but over time, social welfare, technological innovation, and environmental protection were also included.
Why have Five-Year Plans worked in China?
With their continuity, forward-looking strategic planning, and effective implementation, the Five-Year Plans have played a significant role in transforming the country from a limited agricultural base to a global industrial powerhouse.
Despite the gradual evolution of priorities in all 14 Five-Year Plans, from industrialization and economic reform to innovation, the main goal of national development and prosperity has remained unwavering.
Chinese President Xi Jinping noted that from the first Five-Year Plan to the 14th Five-Year Plan, the constant theme has been China’s transformation into a modern socialist country.
What have the plans accomplished?
From a peasant society to the world’s second largest economy, China has achieved the twin miracles of rapid economic growth and long-term social stability, with all Five-Year Plans playing an important role along the way.
The numbers speak for themselves
During the 10th Five-Year Plan (2001-2005), China became the world’s fourth largest economy. In the next 11 five-year plans, China surpassed Germany and Japan to become the world’s second largest economy. By the end of the 13th plan in 2020, China’s GDP had exceeded 100 trillion yuan (US$13.7 trillion at current exchange rates). As of 2021, the start of the 14th five-year plan, China’s per capita GDP has remained above US$12,000 per year.