Grand Chessboard for a Nation: What Is Five-Year Plan of China and How China’s Plan System Works?
A drone photo of the scenery of the Saihanba National Nature Reserve in the morning on 21 June [Liu Mancang/Xinhua]

Grand Chessboard for a Nation: What Is Five-Year Plan of China and How China’s Plan System Works?

Source: Beijing Daily, National Development and Reform, The Paper, and People’s Daily


In China, every new national plan signals new opportunities. These blueprints indicate which industries will benefit from related policy support, which in turn shapes corporate strategies and investor confidence for years to come. To grasp how this system operates, the best entry point is the country’s most iconic policy tool: the Five-Year Plan. 

The year 2025 is a perfect junction for us to review this very concept, since it marks the final phase of China’s 14th Five-Year Plan (2021–2025). It is also a crucial year for drafting the 15th Plan (2026–2030), a process that will guide China’s development into the next decade. In China’s grand national planning system, which consists of plans and programs for multiple fields and regions, the Five-Year Plan functions as the most important and fundamental one. Generally speaking, all the other plans stem from the Five-Year Plan in this particular period. 

What is the Five-Year Plan? How does this plan work? It is contradictory to say China is a market economy while still attaching great importance to these plans. How can this plan be implemented across the vast territory of China? 

Never-ending Transformations: Origin and Development

China’s Five-Year Plan system was originally modelled on the Soviet Union’s centralized planning approach. Following the founding of the People’s Republic in 1949, China entered a period of national recovery and consolidation. In 1953, China launched its first Five-Year Plan, with massive Soviet assistance in heavy industries such as automobile manufacturing, aircraft production, power generation, plastics, and electronics. The goals of that first plan were met in just three years, by the end of 1957.

Until the reform era began in 1979 under Deng Xiaoping, these plans laid the foundation for China's early industrialization in a post-war environment. However, as market-oriented reforms took root, the nature and purpose of the Five-Year Plans evolved.

Laptop production line at Lenovo's Tianjin Zero-Carbon Smart Factory [Zhao Zishuo/Xinhua]

One signal of this transformation was a change in terminology. Before the Sixth Plan (1981–1985), these were called “National Economic Plans.” From the Sixth Plan onward, the title became “Plans for National Economic and Social Development,” reflecting a broader policy scope beyond pure economics. A second shift came in the 11th Plan (2006–2010), when the term “plan” (计划,jì huà) was officially replaced by “program” or “guideline” (规划,guī huà), a subtle yet important distinction. While the former implies rigid central mandates, the latter allows room for market mechanisms and adaptive, goal-oriented governance.

Today’s Five-Year Plans have evolved into comprehensive blueprints that cover economic growth, social policy, science and technology, environmental protection, culture, and more. They reflect not only policy intent, but China’s broader vision of national modernization.

What A Five-Year Plan Looks Like?

A glance at the 14th Five-Year Plan reveals just how far the concept has come. We have selected some fragments from the content of the Outline of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and Vision 2035 of the People's Republic of China. It outlines goals such as:

· Innovation-driven development to build new competitive advantages

· Industrial modernization and strengthening the real economy

· A digital transformation initiative to build “Digital China”

· Rural revitalization and agricultural modernization

· High-quality urbanization strategies

· Green development and ecological conservation

· Broader international cooperation and opening-up

· Human capital development

· Socialist democracy and rule of law reforms

(If you’re interested in more details about the 14th Five-Year Plan, please visit the following site to read the English version:

https://www.fujian.gov.cn/english/news/202108/t20210809_5665713.htm)

This sweeping scope makes implementation especially complex. That’s why China has developed a “Three-Tier, Four-Type” planning system to manage execution.

· Three tiers refer to national, provincial, and local (municipal/county) levels.

· Four types include general development plans (like the Five-Year Plans), spatial plans (land use), sectoral plans (for areas such as transportation, energy, or water infrastructure), and regional plans (to manage cross-jurisdictional issues, such as river basin governance).

A drone photo of an offshore photovoltaic project in Aoshan Bay, Jimo District, Qingdao, Shandong [Li Ziheng/Xinhua]

Each level tailors the national blueprint to local realities. For instance, Shanxi Province—rich in coal but long burdened by environmental degradation—has adapted the 14th Plan’s ecological goals into a localized green transition for its coal industry. City- and county-level plans may specify the construction of roads, bridges, water and power systems, ensuring that national strategies are grounded in implementable local projects.

Through this system, China’s top-down planning becomes a collaborative, multilayered web of coordinated action, linking national vision with regional execution.

Panda Solar Power Plant in Datong, Shanxi [Yang Chenguang/Xinhua]
Consultation, Coordination and Cooperation: This Is How the Plans Are Elaborated

One of the hallmarks of China’s policy-making tradition is the emphasis on extensive consultation before finalizing major decisions. The drafting of the country’s Five-Year Plans is no exception. Beyond relying on government institutions, the planning process actively seeks input from external stakeholders—including experts, research institutions, social organizations, and the public.

This participatory process began to formalize during the formulation of the Seventh Five-Year Plan (1986–1990), when large-scale consultations were held with local governments, ministries, democratic parties, and non-affiliated individuals. Experts were invited to provide policy advice through roundtable discussions and written submissions. By the time the Eighth Five-Year Plan was in development, China had already begun commissioning specific institutions to conduct targeted research: for example, energy policy was studied by the Energy Research Institute.

Since the Ninth Plan, this practice evolved into a structured mechanism for commissioning expert-led preparatory studies. By the 11th Five-Year Plan (2006–2010), these research projects were openly bid out to the wider academic and policy community, and formal expert advisory committees began playing a central role in policy consultation and validation.

Public participation has also grown in scale and diversity. During the drafting of the 10th Plan, for the first time, public opinion was solicited through an open call for submissions, resulting in over 17,000 letters and emails. For the 11th Plan, the National Development and Reform Commission (NDRC) received feedback from more than 5,000 people via various platforms. During the 12th Plan, the consultation expanded further: beyond government agencies, even social groups such as the All-China Women’s Federation were invited to contribute, with over 64,000 suggestions submitted.

Lu Lihua (second from left) explains agricultural support policies to villagers in the vegetable fields of Yangmianzhuang Village, Nanjian Town, Nanjian Yi Autonomous County [Shi Zhihong/Xinhua]

In essence, the Five-Year Plan is not simply a technical economic document; it is the product of a coordinated negotiation process, one that brings together diverse voices, reconciles competing interests, and ultimately builds consensus. 

As the lead agency, the NDRC first outlines the plan’s core vision and then gathers feedback from central ministries and local governments. This process reflects a national conversation—ministries advocating their sectoral needs, localities presenting their regional priorities. The NDRC’s task is then to synthesize, balance, and integrate these perspectives into a comprehensive strategy that addresses the greatest common needs of the country.

This is where policy becomes art: the art of balancing divergent interests. In a vast and complex country like China—with immense geographical, economic, and social diversity—needs often diverge. As one expert notes: “Urban and rural communities have different priorities. The eastern and western regions face different challenges. High-income and low-income groups want different things. Even levels of education influence what people expect from national development.” The planner’s role is to build a shared agenda based on this diversity—an agenda that most people can accept and support.

That’s also why public participation matters. When people are included in the planning process and understand its rationale, they are more likely to support it—even if their immediate interests are not fully met. In this way, the Five-Year Plan becomes a powerful tool for building social cohesion, resolving conflicts, and aligning national aspirations.

A robot performance at the exhibition hall of the 31st China Lanzhou Investment and Trade Fair, July 6, 2025 [Zhang Zhimin/Xinhua]

By sticking to the Five-Year Plan system, China ensures policy continuity at the macro level, which is a key driver of the country’s long-term stability and growth. It is also a defining feature of the Chinese model. At the same time, these plans serve as signals to the market—indicating what kind of society the state envisions, and thereby guiding businesses to align their strategies accordingly.

Why Western Democracies Struggle with Long-Term Planning

Some Western observers marvel at China’s ability to pursue long-term goals with consistency and resolve. Why, they ask, do liberal democracies often fall short in this regard?

One reason lies in ideology. Many Western countries adhere to neoliberal principles, which emphasize individual interests and downplay the role of centralized planning. However, individual actors often prioritize short-term gains, leading to fragmented outcomes and policy inertia.

Another factor is political structure. Many Western democracies are dominated by election-driven parties that represent specific constituencies. These parties often focus on short-term electoral wins rather than long-term national agendas. Even when in power, term limits and frequent power transitions make it difficult to sustain any coherent vision across administrations.

Finally, execution is a challenge. In the West, legislation often lacks specific implementing bodies. Policies may be passed in name but stall in practice. Without clear accountability, execution often falls into what Chinese observers call the “three monks problem”—everyone waits for someone else to carry the water.

Looking Ahead: Certainty in Uncertain Times

As the world enters a period of intensified volatility—marked by deglobalization, geopolitical conflict, and technological disruption—China sees both unprecedented challenges and opportunities. Emerging technologies such as AI are reshaping the global landscape and intensifying international competition.

At this historical juncture, China’s strength lies in its ability to channel institutional advantages into effective governance. The Five-Year Plan is more than a document—it is a unifying vision that offers direction to every sector and, increasingly, to every individual. It represents a promise: that amidst global uncertainty, China can remain a source of strategic certainty.

A drone panoramic photo of blooming cherry blossoms at Kunming's Yuantongshan Park [Hu Chao/Xinhua]

This article is composed of several articles from Beijing Daily, National Development and Reform, The Paper, and People’s Daily. The views don't necessarily reflect those of BeijingReviewDossier.

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