Second, China underwent a fundamental adjustment in its political and economic ideology. It adopted a composite model of corporate ownership, incorporating state-owned, privately-owned and foreign enterprises. This composite approach is inherently complex and dynamic. Maintaining an effective balance within such a vast and intricate system is far from straightforward.

Third, the manifestation of globalization and China’s involvement in that process was significant, and the extent of the flow of goods across borders was unparalleled in human history. As the factory of the world, China sat right at the core of that globalization process. Cross-border investments were also significant, in particular with major flows of foreign direct investment going into China. Such a degree of international connectivity is unprecedented.

Lastly, the intrinsic quality of changes in China has been remarkable. The country evolved from a low-cost manufacturer with little regard for environmental concerns to a producer of sophisticated products and a contributor to environmental protection. Widely known as a copycat only a couple of decades ago, China is now commonly viewed as an innovative nation and has become a primary location for research and development labs for corporations both Chinese and non-Chinese.

Chinese brands, once perceived as low-quality and uncompetitive, have gained significant popularity. While a very small number of Chinese people were able to travel outside China only a couple of decades ago, an estimated 87 million Chinese traveled internationally in 2023. These changes often took place in stages as the Chinese pushed through each stage with speed and intensity.

That such a large and complex country was able to undertake a search for a new approach in the midst of rapid global changes makes China’s transformation a genuine “first time in history.”

This article was published by the South China Morning Post on 23 August 2024.