China's modern development: Lessons from a global powerhouse

China's National Day on October 1, 2025, marks the 76th anniversary of the founding of the People's Republic of China and the beginning of the Golden Week holiday, extended this year to October 8 to include the Mid-Autumn Festival. The day not only celebrates the nation's political rebirth in 1949 but also reflects its transformation from an ancient civilisation into a modern global power. Over the decades, China's journey has been defined by resilience, innovation, and remarkable achievements that continue to shape its role on the world stage.

- BY S. D. GAMINI JAYASOORIYA

1. Economic Growth and Development State-Driven Capitalism

China's economic rise is anchored in a hybrid model often described as “state-driven capitalism.” Unlike neoliberal economies that rely heavily on the self-regulation of markets, China has retained firm state control over strategic sectors such as energy, telecommunications, finance, and technology. Through long-term strategic planning, the state has steered industrial growth in ways that align with national objectives. A prime example is the “Made in China 2025” initiative, which focuses on advancing robotics, artificial intelligence (AI), and renewable energy technologies to reduce reliance on foreign imports. This deliberate interventionist approach has enabled China to build resilience and competitiveness, particularly in advanced manufacturing.

Manufacturing and Export-Led Growth

For decades, China earned its reputation as the “world's factory,” exporting goods at a scale unmatched by any other nation. Its success in manufacturing—from low-cost textiles to sophisticated electronics—was made possible by its ability to combine efficiency, scale, and cost competitiveness. Multinational corporations, such as Foxconn, established vast production networks within China, further embedding the nation into global supply chains.

2. Technological Innovation

Tech Leapfrogging