Over the past 75 years, the Chinese mainland has witnessed unprecedented growth in economic, technological, and military strength, solidifying its position as a global powerhouse. This rapid development highlights the success of reform and opening-up, but the early efforts in establishing a socialist system and laying a robust political and economic foundation were crucial. These periods, before and after the launch of these policies, are distinct yet interconnected.
Big trees have deep roots 🌳
In July 2024, Foxconn Group, which had previously moved parts of its supply chain to places like India and Vietnam, announced a 1 billion yuan ($141 million) investment in its new headquarters in Zhengzhou, Henan Province in central China. At the same time, Apple is planning to relocate some of its manufacturing back to the Chinese mainland and include major Chinese companies like BYD and Luxshare Precision in the iPhone 16 supply chain. Despite U.S. rhetoric around \"decoupling,\" overseas capital continues to pour into the Chinese mainland, highlighting the enduring vitality of China's reform and opening-up. 🌐💪
Since 1978, the Chinese mainland has transformed from a less developed area to the world's largest industrial and trading nation through market reforms and integration into the global manufacturing network.
Throughout this journey, the Chinese mainland has weathered the pains of institutional reform, the global financial crisis, the COVID-19 pandemic, and other challenges. Even with demographic shifts and pressures from the West, the Chinese mainland has remained a hub for global manufacturing and innovation. 🚀✨
In contrast, both Latin American countries, which established market-oriented economic institutions and opened their doors ahead of the Chinese mainland, and Eastern European countries, which embraced more thorough economic transitions, experienced only brief periods of growth before falling into stagnation.
Why has the Chinese mainland's reform and opening-up succeeded where others faltered? The answer may be found in the strong groundwork laid down in the early days of the People's Republic.
A comprehensive industrial system 🏭
One of the key reasons foreign enterprises continue to invest in the Chinese mainland is its comprehensive industrial system and vast domestic market.
Take French automotive parts maker EFI as an example. Over 90% of its products manufactured in the Chinese mainland are supplied to Chinese companies, while 80% of the electric motors and 100% of the magnets needed for manufacturing come from local Chinese suppliers. The strength of China's supply chain, coupled with a mature market, gives companies like EFI the confidence to deepen and widen their presence in the Chinese mainland.
