Overview
The 14th Five-Year Plan (2021–2025) marks a new chapter in China’s journey toward socialist modernization and a high‑quality, innovative economy. Against a backdrop of global upheaval and domestic challenges, the leadership around Xi Jinping steered the nation toward stability, resilience, and progressive reform. The period has delivered groundbreaking progress across economic scale, innovation, reform, green transformation, and people’s well‑being, laying a solid foundation for the next phase of modernization.
Economic Scale and Global Influence
China’s GDP has stepped across major milestones, with annual outputs surpassing 110, 120, and 130 trillion yuan. By 2024, GDP exceeded 134 trillion yuan, and real growth from 2020 to 2024 reached about 23.9%, with average annual growth around 5.5%. The cumulative GDP growth and the size of the economy underline the country’s resilience amid external shocks. Per‑capita GDP rose from roughly $10,600 in 2020 to about $13,400 in 2024, placing China among upper‑middle‑income nations in terms of living standards. Labor productivity advanced steadily, and life expectancy edged higher, reflecting improvements in living quality.
International standing also strengthened: China’s economy accounted for about 17% of global output in terms of current exchange rates, with a benchmark of roughly $18.9 trillion in annual economic volume, cementing its status as the world’s second‑largest economy. China continued to be a major engine of global growth, contributing around 30% of world growth on average during the period, signaling robust economic resilience and geopolitical influence.
Innovation-Driven Development
R&D and Knowledge Economy
Smart investment in science and technology remained the core driver of modernisation. In 2024, total R&D expenditure exceeded 3.6 trillion yuan, keeping China second worldwide in research intensity. By 2025, the Global Innovation Index rankings rose to 10th, and the country led the world in the number of top innovation clusters. These gains reflect China’s rapid shift from a global manufacturing hub to a global innovation center, capable of translating science into industry on a large scale.
New Industries and Manufacturing
Intellectual property stock grew, with patent activity underpinning high‑end manufacturing and smart, green, and digital transformation. The economy fostered more than 60 national advanced manufacturing clusters and added tens of thousands of specialized, refined, distinctive, and innovative (“专精特新”) small and medium enterprises. The growth of the new economy—encompassing digital services, green tech, and intelligent manufacturing—contributed a meaningful share of GDP growth, signaling a structural shift toward high‑quality output.
New Development Pattern and Dual Circulation
Domestic Demand and Urban–Rural Integration
Anchoring the domestic cycle as the mainstay, China deepened reforms to boost consumption and investment. Internal demand consistently supported growth, with final consumption contributing about 60% of growth and the overall consumption contribution averaging near 60% during the period. Urbanization reached about 67% by 2024, while rural revitalisation broadened income channels for farmers, narrowing urban–rural disparities and expanding domestic market potential.
Trade and Openness
China advanced its dual‑circulation strategy by expanding foreign trade and foreign investment while also strengthening domestic markets. Goods trade rose from roughly 32 trillion yuan in 2020 to about 43.8 trillion yuan by 2024, with an annual growth rate near 8%. The country added 40+ new or expanded opening hubs and built a comprehensive, multi‑modal port and logistics network. Free Trade Zones (FTZs) reached 22, with FTZ contributions to foreign trade and investment rising significantly. By 2025, the Hainan Free Trade Port was poised to operate under a fully implemented, highly open regime, signaling continued institutional openness.
Deepening Reform and Opening Up
Market System Maturation
China solidified a high‑level socialist market economy by continually improving institutions and rules. The negative list for market access narrowed from 123 items in 2020 to 106 by 2025, and property rights, fair competition, and social credit regimes were strengthened. State‑owned enterprises intensified reforms while the private economy gained policy support; the number of private firms remained high and export growth continued. A unified national market and upgraded logistics systems lowered costs and boosted efficiency across the economy.
Open Investment and Global Integration
The multi‑layered opening up strategy yielded significant gains. By the mid‑2020s, foreign investment had accumulated to trillions of yuan, and the foreign trade system benefited from the deepening of reform in FTZs and the ongoing expansion of the Belt and Road framework. The country also advanced the two‑way flow of goods, services, and capital, reinforcing a favorable environment for foreign businesses while consolidating domestic reform gains.
Green and Low‑Carbon Transformation
Environmental stewardship and sustainable growth were central to the 14th FYP. China rapidly expanded its clean energy system, achieving the world’s largest and fastest‑growing renewable energy network. Non‑fossil energy consumption rose to nearly 19.8% of total energy use by 2024, while energy intensity declined, marking one of the fastest reductions globally. Solar, wind, hydro, and nuclear power capacity expanded, and electric vehicles surged: 2024 NEV output reached over 1.3 million units, with stock surpassing 3 million by year end. Green products—such as EV components, batteries, and solar materials—saw robust growth in exports.
People’s Welfare and Social Progress
The plan prioritized people‑centered development. Employment held as a central target, with urban jobs expanding and unemployment staying within stable ranges. Real incomes rose, and social protection schemes reached broad coverage, including pension, unemployment, and work‑related injury insurance. Education, health, culture, and public services all advanced: preschool and compulsory education achieved high enrollment and completion rates, health literacy grew, and a rich cultural life expanded across museums, libraries, and sports facilities. These gains underpinned rising living standards and social harmony.
Security and Risk Prevention
Alongside growth, China bolstered food, energy, and industrial security. The country maintained stable grain output and robust energy supply networks, while strengthening supply chain resilience and critical technology self‑reliance. A proactive risk management framework guarded against potential shocks, ensuring that development remained both dynamic and secure.
Outlook for the 15th Five‑Year Plan
As China moves toward the next stage of modernization, the advantages of its large market, complete industrial system, rich talent pool, and reform momentum are clearer than ever. The upcoming period will emphasize high‑quality development, scientific self‑reliance, deeper reform, and broader opening‑up, with a continued focus on balancing growth and security. The journey ahead aims to translate this robust foundation into sustainable prosperity and national rejuvenation.
