BEIJING, June 11, 2025 /PRNewswire/ — A news report from Beijing Review:
In July 1956, the First Automobile Works in Changchun, Jilin Province—part of the country’s traditional northeastern industrial base—produced the first car made in the People’s Republic of China (PRC). This achievement was a glimpse into the 156 key projects outlined in the country’s First Five-Year Plan (1953-57). Fast forward to 2024, and thanks to high levels of automation and intelligent manufacturing, major Chinese automaker BYD’s factory in Shenzhen, Guangdong Province, is able to roll out a new electric vehicle every minute, highlighting the advancements in high-end manufacturing as detailed in the 14th Five-Year Plan (2021-25).
The five-year plan, also known as the Five-Year Plan for National Economic and Social Development, is a key guiding document for China’s medium- to long-term economic and social progress. It outlines the country’s overall goals, main tasks and policy orientation across different sectors over a five-year period.
“China’s five-year planning system is an important tool for national governance. It is one of the few medium- to long-term planning systems in the world that has been retained and successfully implemented, showcasing the unique advantages of the socialist system with Chinese characteristics,” Yan Yilong, Deputy Dean of the Institute for Contemporary China Studies at Beijing-based Tsinghua University, told Beijing Review.
Hailing the five-year plans as “strategic and flexible,” British scholar and political commentator Martin Jacques told Xinhua News Agency, “The five-year plans are suited to the Chinese mentality and the Chinese idea of thinking long-term.”
This year is the final year for the implementation of the 14th Five-Year Plan. The 2025 Government Work Report, released in early March, underscores the importance of fully completing the plan’s objectives, so as to lay a solid foundation for a strong start to the 15th Five-Year Plan (2026-30).
Since the launch of the First Five-Year Plan, these plans have not only guided China’s transformative development but also evolved to meet the conditions and challenges of each era.
The formulation process of a five-year plan follows a structured framework that combines the leadership of the Communist Party of China (CPC) Central Committee with broad public participation. A plenary session of the CPC Central Committee puts forward its proposals for the formulation of the plan. The State Council, the highest state administrative organ, then drafts an outline for the plan, which is later reviewed and approved by the National People’s Congress, China’s national legislature, before being officially published—and subsequently implemented.
Throughout the entire process, public input and expert opinions are carefully considered. These arrangements gather insights and experiences from different sectors, reflect public expectations and build consensus.
Yan stated that the decision-making process includes multiple rounds of discussions, research and feedback, with the goal of gathering diverse opinions and maximizing quality input from all parties involved.
This process typically spans several years. For instance, the drafting of the current 14th Five-Year Plan, adopted in 2021, began as early as 2018.
China’s 15th Five-Year Plan will begin in 2026. Yan emphasized that the primary challenge during the 15th Five-Year Plan period will be to maintain medium- to high-speed growth, with insufficient effective demand posing a particularly acute risk.
To tackle this, key strategies include: developing new quality productive forces to stimulate consumption through fresh demand generation, and prioritizing employment stability to ensure the income foundation for household financial security.
First introduced in 2023, new quality productive forces refer to advanced productivity freed from the traditional economic growth mode and productivity development paths. It features cutting-edge technologies, high efficiency and high quality, and comes in line with China’s new development philosophy.
Yan added that major steps should be taken in pursuing common prosperity, improving income distribution, boosting purchasing power for middle- and low-income groups and investing in public welfare. These measures can simultaneously stimulate domestic demand while addressing social concerns.
Equally essential is mastering expectation management—or the aligning of public and business perceptions with policy objectives. As Yan stressed, “The power of public confidence cannot be underestimated.” By creating a positive outlook, this psychological dimension of economic governance can produce self-reinforcing cycles of stability and growth.
Moreover, to preserve investor confidence, financial system stability demands urgent attention to balance sheet repairs, particularly in real estate and stock markets.
“China’s successive five-year plans provide the global economy with unparalleled certainty—a critical anchor at a time when the world faces profound unpredictability,” Wang Huiyao, President of the Center for China and Globalization, a Beijing-based think tank, said.
