When China's Commerce Minister Wang Wentao introduced the term 'Chinese People's Economy' in late 2025, it marked more than bureaucratic jargon – it signaled a strategic shift in how success is measured globally. Moving beyond GDP, the focus now includes Gross National Income (GNI), integrating overseas earnings into the nation's economic narrative.
China+N: A New Global Playbook
The so-called China+N strategy uses China's manufacturing might as a launchpad for global operations. Instead of relying solely on exports, companies like Pop Mart are building brand ecosystems abroad, while tea and coffee chains reengineer traditional flavors for new markets.
Backing Infrastructure and Policy
To support this shift, China has rolled out cross-border financial services, international tax coordination and stronger consular protection for business travelers. Institutional openness is aligning domestic standards with global norms, and upgraded bilateral investment treaties are smoothing pathways for overseas operations.
The Role of the Chinese Diaspora
Overseas Chinese, who contributed over 60 percent of inbound investment to China between 1979 and 2017, are now acting as cultural translators and operational partners. Their knowledge of local regulations and consumer habits is vital for newcomers aiming to establish a foothold abroad.
Corporate Transformation and Risk Management
Success in this new paradigm demands sophisticated localization. Luckin Coffee's international growth shows how Chinese efficiency can blend with local tastes. At the same time, boards are prioritizing compliance and risk strategies as geopolitical tensions rise. Leading firms pursue 'value co-creation', creating jobs and transferring technology in host economies.
Balancing Challenges and Opportunities
Protectionist sentiments in some markets and the need to maintain domestic stability pose real challenges. Critics worry about overextension. Yet with over 50,000 Chinese enterprises in 190 countries and more than $3 trillion in outward investment, the foundation is robust. As repatriated earnings grow, they boost GNI and anchor the 'people-centered' vision.
Global Implications
For international observers, the 'Chinese People's Economy' signals China's evolution from participant to architect of globalization. It's about creating sustainable value chains that link Chinese innovation with global demand and share benefits widely. The model's success will hinge on smart regulation and genuine market integration, but one thing is clear: future prosperity lies beyond borders.
Reference(s):
The "Chinese People's Economy" goes global: From policy to practice
cgtn.com
