Understanding China – Chinese Modernization and Its Vision for Global Governance

‘It doesn’t matter whether a cat is black or white, as long as it catches mice.’

Deng Xiaoping’s famous remark captures a century-long contest over what progress means and how it is achieved. For more than a century, the world has lived by a single story of progress. It begins in Europe, travels across the Atlantic, and ends with the triumph of capitalism and liberal democracy. History, we were told, had reached its final chapter. Yet somewhere east of that narrative, another story has unfolded, one that reimagines what it means to modernize without conquering, to grow without dominating and to prosper by sharing.

In the discourse on international development, two broad stories explain the rise of nations. The first refers to the ascent of Western Europe and North America through capitalist modernity; the second describes China’s distinct path of modernization and its peaceful rise. The former rests on a colonial history of extraction and industrialization, while the latter emphasizes development through market socialism and self-reliance.

China’s rise as a global leader in the 21st century challenges the assumption that capitalism and liberal democracy are the only viable paths to development. It demonstrates that international politics can be conducted through win-win cooperation rather than zero-sum competition. Fukuyama’s ‘end of history’ thesis has been rendered obsolete by China’s peaceful transformation, a rise that did not yield to liberal democracy as the only viable political destiny. The question then arises: how did a country once derided as ‘the sick man of Asia,’ mired in poverty and a war-torn economy, transform into one of the most advanced, innovative, and indusialized nations in the world?

Unlike Western and Japanese experiences of capitalist modernity, shaped by bourgeois and fascist revolutions respectively, China’s path was forged through a communist revolution led by peasants and workers under the Communist Party, as noted by Barrington J. Moore in Origins of Dictatorship & Democracy. It did not replicate Europe’s colonial or reformist trajectories, nor did it expand through imperialism. Instead, the revolution itself became the engine of modernization. Since 1949, China has demonstrated immense material growth, lifted millions out of poverty, and maintained an extraordinary record of peaceful development, an achievement that disrupts long-held assumptions that link modernization with Westernization, all without waging foreign wars or depending on colonial plunder.

The story of modern China can be broadly divided into three phases: 1949–1976, 1976–2012, and 2012–present.

In the first phase, under Mao Zedong, national reconstruction began amid the ruins of war. The new state sought to eliminate feudal and capitalist structures through land reforms, agricultural collectivization, and nationalization of industries under Soviet-style five-year plans. The first plan, launched in 1953, prioritized heavy industries such as coal, steel, and electricity, and laid the foundation of socialist industrialization.

These efforts were not without cost. The Great Leap Forward, intended to accelerate development through collective labor, led instead to famine and turmoil. Yet even amid these struggles, China remained steadfast in its pursuit of sovereignty and self-reliance. Its later diplomatic outreach, symbolized by ‘ping-pong diplomacy’ and entry into the United Nations, signaled a nation gradually re-engaging with the world on its own terms.

The second phase, from 1976 to 2012, was defined by Deng Xiaoping’s pragmatic reforms. His ‘Reform and Opening-Up’ policy transitioned China from a centrally planned system to market socialism. ‘Seeking truth from facts,’ a phrase attributed to him, symbolized a break from the ideological rigidity of Maoist era. Deng introduced market mechanisms, partially decentralized state control, and allowed private enterprise to coexist with socialist ownership. Special Economic Zones, such as Shenzhen, attracted foreign investment, making China a powerhouse of export-led growth.

He also introduced agricultural reforms under the household responsibility system, boosting productivity and rural income. Exports soared from $10 billion in 1978 to $25 billion by 1985. These reforms encouraged urbanization and industrial expansion, integrating China into the global market. This pivot set China on the path to become an economic giant in the future eventually.

The third and current phase, under President Xi Jinping, reflects the consolidation and deepening of this Chinese model as ‘modernization with Chinese characteristics.’ Xi emphasizes comprehensive modernization, balancing growth with ecological sustainability, social justice, political stability, and international responsibility. His framework rests on five pillars: modernization for 1.4 billion people; common prosperity through equitable wealth distribution; cultural and ethical advancement alongside material progress; harmony between humanity and nature; and peaceful development based on cooperation. These principles mark a deliberate rejection of the Western belief that modernization requires Westernization. Under Xi’s leadership, China has positioned itself as both an economic power and a key actor shaping norms of global governance.

The cumulative effect of these phases is striking. Since 1978, China’s GDP has grown at an average annual rate of over 9% till 2010. More than 800 million people have been lifted out of poverty. Urbanization has increased from under 20% in 1980 to over 65% today. Life expectancy has jumped from 44 years in 1949 to over 78. The country’s current Five-Year Plans prioritize high-quality growth, green transformation, and social equity, signaling a shift from rapid expansion to sustainable development, with China now at the forefront of eco-friendly technologies.

China’s experience forces a reevaluation of global development narratives. The Western model, built on colonial extraction, military dominance, and neoliberal governance, rests on historical inequalities. Institutions like the IMF, World Bank, and WTO, established under the Bretton Woods system, continue to draw criticism for perpetuating dependency and debt traps among developing nations. Their conditionalities often erode sovereignty and lock smaller economies into cycles of subservience. The result is an unjust global hierarchical system that privileges the global north over the global south.

By contrast, China’s model fuses capitalist economics with socialist governance and long-term political consistency. It shows that modernization can be nationally defined and not externally imposed. Having risen without war or expansionism, China now questions the fairness of the prevailing global order and proposes an alternative vision grounded in cooperation, equity, and mutual respect. Beijing advocates a multipolar world to replace Cold War-era bloc politics with inclusive partnership, emphasizing shared development and win-win outcomes over ideological confrontation.

This approach to global governance mirrors the same logic that guided China’s domestic transformation, self-reliance, gradual reform, and respect for sovereignty. Having achieved material progress through stability and pragmatic adaptation, China now promotes an international order in which nations can coexist peacefully, without coercion or domination.

In recent years, China has advanced what it calls the ‘Four Global Initiatives’ (4GIs) to address global challenges. Since 2021, it has launched the Global Development Initiative (GDI), the Global Security Initiative (GSI), the Global Civilizations Initiative (GCI), and the Global Governance Initiative (GGI). These frameworks embody Xi’s vision for a world rooted in cooperation, multilateralism, and people-centered development. They provide a blueprint for reforming international institutions by promoting sustainable growth, safeguarding sovereignty, and encouraging cross-cultural understanding.

The story of Chinese modernization is living proof that economic growth and national rejuvenation are possible without following the Western path. Self-reliance, continuity, and visionary leadership can deliver remarkable results within decades. Unlike the Western experience, China’s modernization path disproves the dominant discourse equating modernization with Westernization, a paradigm that draws developing countries into an endless imitation game. Where the Western story is shaped by competition and hegemony, China speaks of cooperation, harmony, and peaceful coexistence, with fellow humans as well as nature.

Reconfirming this Chinese message to the world, President Xi Jinping at the APEC CEO Summit on October 31 2025 said “While confrontation and antagonism breed only estrangement and turbulence, win-win cooperation proves to be the right way forward”. The story of modernization no longer belongs to the West but the Chinese model of shared prosperity.

The author is a research scholar with the BNU Center for Policy Research (BCPR) and Understanding China Forum (UCF).