Modern China: Changing Economic Paradigm

DOI: 10.20542/0131-2227-2022-66-10-24-33
L. Novoselova,
Institute of China and Contemporary Asia, Russian Academy of Sciences (ICCA RAS), 32, Nakhimovskii Prosp., Moscow, 117997, Russian Federation.

Received 08.06.2022. Revised 20.07.2022. Accepted 01.08.2022.

Abstract. The article presents the key directions of China’s socio-economic policy since the XVIII Congress of the CPC (2012), which introduced the fifth generation of Chinese leaders led by Xi Jinping. The emphasis is placed on the consideration of the main components of China’s transition to a new model of economic development. Assessing institutional changes with regard to this task, the author argues that alongside with strengthening market principles in the economy, they provide for enhancing the supervisory and regulatory functions of the government based on a number of newly adopted laws and regulations. The authorities’ efforts to improve people’s wellbeing and expand domestic demand extended to the creation of a comprehensive social security system, state support for the poor, tax relief, ensuring good conditions for small businesses, developing education and medical services. As a result in early 2020s the PRC declared overcoming absolute poverty and building a moderately prosperous society. Favorable framework was provided for the science and technology development, e.g. growing R&D spending, tax benefits, the creation of numerous innovation centers, as well as expanding international cooperation in science and technology. This allowed the PRC to become one of the world leaders in a number of aspects of innovative development. China’s green and carbon transition policy meets the terms of the Paris Agreement on climate and provides for establishing stringent eco-environmental protection systems as well as changing energy mix through closure of carbon-intensive industries, stimulating eco-friendly technologies, creation of a national carbon market, etc. All this gives hope for a gradual improvement of the country’s eco-environment. Currently, China’s economy bears visible traces of its transition to a new development model. Despite all its problems and global challenges, the macro- and microeconomic results of the policy, pursued by the Chinese leadership, cause reasonable optimism about the country’s further development.

Keywords: economic model, domestic demand, poverty alleviation, disposable income, taxation, innovation, technology, R&D, eco-environment, pollution, investment, energy consumption, carbon intensity, decarbonization


1. Fukumoto T., Muto I. Rebalancing China’s Economic Growth: Some Insights from Japan’s Experience. China nd World Economy, 2012, vol. 20, 1, pp. 62-82.

2. Berger Ya.M. China’s Economic Strategy. Moscow, Forum Publishing House, 2009. 560 p. (In Russ.)

3. Novoselova L.V. Reforming the tax system of the People’s Republic of China. Problems of the Far East, 2015, no. 5, pp. 32-45. (In Russ.)

4. Boney L. Poverty eradication in China. Part 1. Asia and Africa today, 2020, no. 8, pp. 4-12. (In Russ.) DOI: 10.31857/S032150750010444-0

5. Boullenois C. Poverty Alleviation in China: The Rise of State-Sponsored Corporate Paternalism. China Perspectives, 2020-3. DOI: 10.4000/chinaperspectives.10456

6. Atkinson R.D., Foote C. To Understand Chinese Innovation Success, Look no Further than Government R&D Subsidies. Washington, Information Technology and Innovation Foundation, 23.10.2019. Available at: (accessed 01.07.2022).

7. Li Y. Understanding China’s Technological Rise. The Diplomat, 03.08.2018. Available at: (accessed 01.07.2022).

8. Maizland L. China’s Fight Against Climate Change and Environmental Degradation. New York, Council on Foreign Relations, 19.05.2021. Available at: (accessed 01.07.2022).

9. Holzmann A., Grunberg N. “Greening” China: An Analysis of Beijing’s Sustainable Development Strategies. Merics China Monitor, 07.01.2021, . 1-15. Available at: (accessed 01.07.2022).

10. Chen B., Fæste L., Jacobsen R., Teck Kong M., Lu D., Palme Th. B. How China Can Achieve Carbon Neutrality by 2060. Boston Consulting Group, 14.12.2020. Available at: (accessed 01.07.2022).

11. Novoselova L. Housing issue in China: problems and solutions. Asia and Africa today, 2019, no. 1, pp. 46-53. (In Russ.) DOI: 10.31857/S032150750003343-9


1. China Statistical Yearbook‑2019. Beijing, National Bureau of Statistics of China, 2019. Available at: (accessed 15.05.2022).

2. China’s Epic Journey from Poverty to Prosperity. Xinhua News Agency, 28.09.2021. Available at: (accessed 30.05.2022).

3. Poverty Alleviation. China’s Experience and Contribution. Beijing, The State Council Information Office of the People’s Republic of China, April 2021. Available at: (accessed 20.05.2022).

4. Where Is China’s Poverty Financing from, and How It Works? China Global Television Network, 14.08.2020. Available at: (accessed 25.05.2022).

5. Chinese Innovation. China’s Technology Future and what It Means for Silicon Valley. San Francisco, Bay Area Council Economic Institute, November 2017. 54 p. Available at: (accessed 30.05.2022).

6. Advance EU Access to Financial Incentives for Innovation in China. Guide for EU Stakeholders on Chinese National STI Funding Programmes. Development Solutions Europe Ltd., January 2018. 129 p. Available at: (accessed 30.05.2022).

7. Is China a Global Leader in Research and Development? Center for Strategic and International Studies, 28.01.2021. Available at: (accessed 31.05.2022).

8. How China Creates the Strongest Innovation System. December 6, 2017. St. Gallen, The BMI Lab, 29.11.2017. Available at: (accessed 30.05.2022).

9. Statistical Communique of the People’s Republic of China on the 2021 National Economic and Social Development. National Bureau of Statistics of China, 28.02.2022. Available at: (accessed 20.05.2022).

10. China’s Innovation Ecosystem. White Paper. Geneva, The World Economic Forum, August 2016. 22 p. Available at: (accessed 21.05.2022).

11. Xi Jinping’s report at the 19th CPC Congress. Chinese Internet Information Center. 04.11.2017. (In Russ.) Available at: (accessed 01.06.2022).

12. China Statistical Yearbook‑2021. Beijing, National Bureau of Statistics of China, 2021. Available at: (accessed

13. Highlights of China’s Economic Development in Past Decade. Xinhua News Agency, 17.05.2022. Available at: (accessed 26.05.2022).

14. China Statistical Yearbook‑2016. Beijing, National Bureau of Statistics of China, 2016. Available at: (accessed 11.07.2022).

15. China Statistical Yearbook‑2013. Beijing, National Bureau of Statistics of China, 2013. Available at: (accessed 11.07.2022). 

Registered in System SCIENCE INDEX

For citation:
Novoselova L. Modern China: Changing Economic Paradigm. World Eonomy and International Relations, 2022, vol. 66, no. 10, pp. 24-33.

Comments (0)

No comments

Add comment






Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies


Current Issue
2024, vol. 68, No. 6
Topical Themes of the Issue:
  • The “Pivot to Asia”: AUKUS in the Perception of American Politicum
  • The Collapse of the European Collective Security System
  • Public Investment and Sustainability of World Economy
  • Sub-Saharan Africa: Trends, Proportions and Factors of Development
Submit an Article
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.