Socialism with Chinese characteristics for the new area

During my visit to China for the Second Global South Think Tank Dialogue, I frequently encountered the phrase “Socialism with Chinese Characteristics for the New Era.” This concept has been central to China’s governance and economic strategy, driving its transformation into the world’s second-largest economy. While many nations that adopted communism as a political ideology have struggled with stagnation and inefficiency, China’s unique approach to socialism has facilitated industrialization, poverty alleviation, and large-scale infrastructure development at an unprecedented pace.

At Marga Institute, our focus is to critically examine development models that best align with Sri Lanka’s economic, social, and political realities. As a research organization and think tank, we analyze development through multiple lenses—economic, social, political, environmental, and value-based. It was this interdisciplinary approach that heightened my curiosity when I attended a presentation on President Xi Jinping’s thought on Socialism with Chinese Characteristics for a New Era at the Party School of the Communist Party of China in Nanning City, Guangxi Province.

This article does not seek to advocate for communism or socialism, nor does it claim expertise in political science or geopolitics. Instead, it aims to explore how political structures impact development and how the Chinese Communist Party (CCP) has been organized to meet the nation’s evolving socio-economic needs.

Key Questions for Sri Lanka’s Development Trajectory

From a research perspective, China’s governance model raises several critical questions for Sri Lanka:

· Given Sri Lanka’s economic challenges and welfare-driven state structure, what aspects of socialism could be adapted to achieve a minimum of 5% GDP growth and overcome the economic crisis?

· What reforms are needed in Sri Lanka’s planning mechanisms to drive sustainable, long-term economic growth?

· How should the current ruling party, National People’s Power, be structured to effectively address development needs?

While this article does not focus on the structural aspects of the Chinese Communist Party or how Sri Lankan political parties could adapt similar models, it aims to shed light on the first two research questions—how economic planning and development strategies can be better structured in Sri Lanka.

Understanding Socialism with Chinese Characteristics

During my time in China, I engaged in discussions with Chinese academics and officials, as well as representatives from universities and think tanks across the Global South—including Bangladesh, Georgia, Tajikistan, Indonesia, Myanmar, Malaysia, Nepal, Pakistan, and Vietnam. Based on these conversations, here’s my understanding of Socialism with Chinese Characteristics and its role in China’s development success.

Key Features of Socialism with Chinese Characteristics

1. A Market-Driven Economy with State Oversight

Unlike traditional socialist economies that rely entirely on state control, China follows a “socialist market economy”—a hybrid model that allows both state intervention and market-driven growth.

State-Owned Enterprises (SOEs) dominate key sectors such as energy, finance, and infrastructure, but private businesses, foreign investment, and competition are encouraged.

A dual-track approach ensures that both government planning and market forces shape economic progress.

2. The Communist Party as the Central Authority

The CCP remains the core of political, economic, and social decision-making, ensuring long-term stability and continuity.

Unlike multiparty democracies, where frequent government changes can disrupt policies, China’s centralized leadership enables consistent economic planning.

Political reforms are gradual and carefully managed to prevent instability rather than allowing rapid democratization.

3. Pragmatic & Gradual Economic Reform

Deng Xiaoping’s “Reform and Opening-Up” introduced foreign investments, economic liberalization, and Special Economic Zones (SEZs) to drive growth.

Unlike the Soviet model, which relied on rigid central planning, China tested economic reforms regionally before scaling them up nationwide.

Policy decisions are practical and results-oriented, focused on economic success rather than ideological rigidity.

4. State-Led Development & Long-Term Planning

China’s Five-Year Plans set clear economic and social priorities, ensuring predictability and structured growth.

Heavy investments in infrastructure, technology, and education have fueled modernization and global competitiveness.

Urbanization and industrialization are state-managed to balance economic growth with social stability.

5. A Focus on Poverty Reduction & Social Welfare

China claims that it has successfully lifted over 800 million people out of poverty—one of the largest poverty alleviation efforts in history.

Unlike Western welfare models, China’s system prioritizes job creation, rural development, and regional economic balancing over direct cash assistance.

The goal is to build a “moderately prosperous society” ensuring economic development and social welfare go hand in hand.

6. Nationalism & Cultural Identity as Unifying Forces

Confucian values—such as social harmony, collective responsibility, and respect for authority—shape China’s governance and economic policies.

Economic success is tied to national pride, strengthening public support for the CCP’s leadership.

Initiatives like the Belt and Road Initiative (BRI) highlight China’s global ambitions while reinforcing sovereignty.

7. Stability Over Western-Style Democracy

China rejects Western liberal democracy, arguing that rapid political shifts could lead to instability and economic stagnation—as seen in the collapse of the Soviet Union.

Political dissent is tightly controlled through censorship, surveillance, and regulation of civil society to maintain social order.

The emphasis remains on economic growth, social harmony, and centralized decision-making, rather than multiparty governance.

What Sri Lanka may adapt from China’s example

China’s development strategy has leveraged its geographical advantages, modernized agriculture and industry, improved transport and port infrastructure, expanded e-commerce, and pursued green, bio-friendly food production. The broader goal has been to build a healthy, prosperous nation through long-term strategic planning and state-led development initiatives.

While China’s model cannot be wholesale replicated in Sri Lanka, there are key aspects in planning, governance, and economic strategy that merit further exploration. Sri Lanka’s challenge lies in balancing state-led development with economic liberalization, ensuring policies are both practical and sustainable.

China’s approach to socialism has defied conventional expectations. While many traditional socialist economies have struggled, China has strategically combined state intervention with market mechanisms—leading to rapid economic growth and global influence. This model raises important questions for Sri Lanka’s long-term planning, particularly in the context of its current financial crisis and development challenges.

As Sri Lanka navigates a critical period of economic uncertainty, understanding different governance and economic models is essential. By studying China’s development path, alongside global best practices, Sri Lanka can identify sustainable solutions that align with its unique socio-economic landscape—fostering inclusive and long-term economic growth.

While China’s centralized system enables swift decision-making and implementation, it leaves little room for dissent. In contrast, Sri Lanka’s democratic framework allows for debate and opposition, but this often results in prolonged delays in executing critical economic policies. Protests and political resistance have frequently obstructed reforms that could have propelled the country forward—whether it be the introduction of private universities to expand higher education opportunities or the now-abandoned Light Rail Transit (LRT) project that promised to revolutionize urban transport.

The question remains: Are these challenges simply a reflection of Sri Lanka’s political culture, or do external geopolitical factors play a role in fueling instability? Unlike China, Sri Lanka does not have a single-party hierarchy that can push through reforms without resistance. However, this also means that space for public discourse and criticism remains intact. The challenge for Sri Lanka is to strike a balance—ensuring that necessary reforms can be implemented efficiently while upholding democratic principles and public accountability.

Executive Vice Chairman- Marga Institute