China’s rapid economic development cannot be separated from the government’s formulation of the "Five-Year Plans." Many economists, scholars, government officials, and businesspeople around the world analyze and predict the global or national economy solely based on economic data, yet they often overlook the global geopolitical landscape and its development direction. This analysis perspective has significant limitations and can lead to substantial deviations between predictions and reality.

The New Business Dream team firmly believes that regardless of which country one is from, and regardless of whether a country is rich or poor, only government officials who possess a geopolitical perspective can formulate long-term policies that benefit the country’s development. Similarly, only businesspeople with a geopolitical perspective can truly seize business opportunities in the new era.

This article outlines China's Five-Year Plans since the founding of the People's Republic of China, reviewing the background of their formulation, key achievements, and major political and economic events each year. This will help readers better understand the basic framework and execution steps of China’s governance model under its Five-Year Plans. It also demonstrates how the international geopolitical landscape has influenced China's development.

Overview of China's Five-Year Plans

The Five-Year Plan, formally known as the National Economic and Social Development Five-Year Plan Outline of the People's Republic of China, is an important component of China’s national economic planning and part of long-term policy. The first Five-Year Plan was formulated in 1953.

A Five-Year Plan is a set of national development goals for a specific period, with corresponding policy guidance. It typically includes planning for major construction projects, productivity distribution, and the important proportional relationships of the national economy. The Five-Year Plan plays a huge role in achieving development goals, compensating for market failures, effectively allocating public resources, and promoting comprehensive, coordinated, and sustainable development.

The People’s Republic of China was founded on October 1, 1949, and there were only two exceptional periods during which Five-Year Plans were not executed:

From October 1949 to the end of 1952, when China was in the period of national economic recovery, which also served as the preparatory phase for the first Five-Year Plan.

From 1963 to 1965, during the period of national economic adjustment, when China faced a comprehensive blockade under the geopolitical control of two superpowers and shifted towards war preparedness construction.

Four Stages of China’s Five-Year Plans

The process of formulating and implementing China’s Five-Year Plans can be roughly divided into four stages.

Stage One: Five-Year Plans under the Planned Economy System (1953-1980)

This stage saw the formulation and implementation of five Five-Year Plans, laying the foundation for China's industrialization and modernization. It established a relatively complete industrial system and national economic system, providing valuable experience for socialist construction.

Stage Two: Five-Year Plans during the Transition from a Planned Economy to a Socialist Market Economy (1981-2000)

During this stage, four Five-Year Plans were implemented. China initially established the basic framework for a socialist market economy, addressing the issue of people's basic living standards and achieving the goal of overall modest prosperity.

Stage Three: Five-Year Plans After the Basic Establishment of the Socialist Market Economy (2001-2020)

This stage saw the implementation of four more Five-Year Plans, achieving the goal of building a moderately prosperous society in all respects, which laid a solid foundation for the comprehensive construction of a modern socialist country.

Stage Four: Five-Year Plans Amid Global Changes (2021-Present)

In the context of the China-U.S. trade war and the global spread of the COVID-19 pandemic, China released the 14th Five-Year Plan in March 2021.