China’s rapid ascent to global economic and technological dominance has been a remarkable phenomenon. Over the past century, it has transformed from an agricultural society into one of the most technologically advanced and industrially powerful nations in the world. This article explores the key factors behind China’s economic success and why other nations find it difficult to replicate its achievements.

Historical Background

The Foundation of Modern China

The Republic of China was founded in 1912, marking the end of centuries of imperial rule. During this period, many Chinese students studied abroad, particularly in Japan, and returned with advanced knowledge in various fields. Some of these scholars established schools and universities, significantly improving the quality of education in China. This, in turn, created a more skilled and productive workforce.

Post-World War II Developments

Following World War II, the People’s Republic of China was established in 1949 under communist rule. China strengthened its ties with the Soviet Union, the dominant power in the region at the time, gaining access to industrial and military expertise. Recognising its vast natural resources, China focused on producing goods where it had a comparative advantage, such as rice and other agricultural products. This strategic use of resources laid the groundwork for industrialisation and economic expansion.

China’s Technological and Industrial Development

Early Investments in Science and Technology

China was one of the first nations to launch a government-backed computing program. The Twelve-Year Science Plan led to the establishment of the Beijing Institute of Computing Technology under the Chinese Academy of Sciences (CAS).

By the 1960s, China had built upon Soviet technological methods, refining them into its own unique approaches. To prepare for potential conflicts with the U.S. or the Soviet Union, China invested 45% of its industrial capacity into a “Third Front” industrialisation program, though this was largely abandoned after diplomatic improvements, such as U.S. President Richard Nixon’s visit to China.

In 1964, China debuted its first self-developed large-scale digital computer, the 119, which played a key role in its first successful nuclear weapons test. By 1972, China was already producing third-generation computers.

The Rise of Technological Modernisation

From 1975 onward, science and technology became a central pillar of China’s economic strategy, known as the Four Modernisations. Under Deng Xiaoping, China prioritised scientific advancements, leading to breakthroughs in fields like superconductivity, high-yield hybrid rice, and industrial automation.

In March 1986, China launched the 863 Project, a large-scale technology development plan designed to push scientific and industrial innovation forward. As China integrated further into the global economy, its government increased funding for research and development, improved its scientific infrastructure, and allocated significant resources to emerging technologies.

Key Milestones in China’s Technological Dominance

• 2003: China became the third country to send humans into space, with ambitions to put a person on Mars by 2030.
• 2000s–2010s: China emerged as a global leader in fields such as supercomputing, artificial intelligence (AI), bullet trains, aeronautics, and nuclear physics.
• 2014: China established the China Integrated Circuit Industry Investment Fund, aiming to reduce reliance on foreign semiconductor companies.
• 2016: China became the country with the highest science output, as measured by research publications.
• 2022: China overtook the U.S. in naval power, having the world’s largest navy and the most aircraft carriers, thanks to billions of dollars in military investments and a mandatory 3–4 years of military servicefor its citizens.

Economic Control and Policy Strategies

One of the most distinctive features of China’s economic rise is the strict control exerted by its government over financial markets. Since the establishment of the People’s Bank of China, the yuan has never been a fully open trading currency. The government has consistently regulated the exchange rate, allowing it to maintain financial stability and competitiveness in global trade.

Additionally, China’s One-Child Policy, enforced in the 1990s, initially slowed workforce growth. However, the policy was lifted in the early 2000s to counteract potential labour shortages, ensuring a steady supply of workers for its industries.

Why China’s Economic Success Is Difficult to Replicate

Despite China’s remarkable progress, many other nations struggle to achieve similar advancements due to several key factors:

• Strong Centralised Government Control – China’s rapid industrialisation and technological progress were largely driven by top-down government planning. Few countries can implement long-term strategies with the same level of authority and efficiency.
• Massive Workforce and Population – With over a billion people, China has one of the largest labour forces in the world, providing a huge pool of workers for industrial and technological development. Many nations lack the population size to achieve similar economies of scale.
• Strategic Foreign Technology Transfers – China has effectively acquired and adapted foreign technology through partnerships, investments, and intellectual property strategies. Many other countries do not have the same level of access or bargaining power.
• State-Controlled Economic Policies – Unlike free-market economies, China has the ability to control currency exchange rates, regulate industries, and direct state-owned enterprises to prioritise national interests. This level of control is rare in democratic capitalist systems.
• Heavy Investment in Research and Development – China allocates billions of dollars annually to R&D, surpassing many developed nations. Many developing countries lack the financial resources or long-term planning to sustain such investments.
• Military and Infrastructure Investments – China’s made strategic investment in building a world-class military and infrastructure to support its economic and developmental objectives.