China’s economy has one prominent and enduring feature: reform. Since 1978, reforms have continuously shaped the country’s economic structure and future trajectory. However, China’s reforms have never been one-size-fits-all; they have been designed and implemented in accordance with prevailing realities and long-term national goals.
This is evident from the sequence of reforms since 1978. The first phase was aimed at increasing production capacity, meeting people’s basic needs, and resolving food shortages. Agricultural and industrial reforms were therefore introduced. This period laid the foundation for China’s rise as “world’s factory” and largely solved the issues of food availability and affordability.
The increase in productive capacity helped China emerge as a major export hub. Exports were positioned as a key engine of growth, and reforms accelerated further, particularly after Go Global Policy and China’s accession to World Trade Organization (WTO). During this phase, the old trio — furniture, home appliances, and apparel — became the driving force of economic and export growth, transforming China into one of world’s largest manufacturing and exporting nations.
Building on the success of old trio, China moved towards diversification. It identified new drivers of economic and export growth, leading to emergence of a new trio: electric vehicles (EVs), lithium batteries, and photovoltaic products. China now dominates global markets in solar energy, batteries, and many segments of EV industry, making it a global leader in green economy.
China has since identified another trio of future growth engines: artificial intelligence (AI), robotics, and innovative pharmaceuticals. The country is investing heavily in these sectors to achieve its strategic objectives, and the results are already becoming visible.
For example, China has become world’s leading exporter of robots. Data for first six months of 2026 show China exported industrial robots worth approximately $930 million to 141 countries, representing year-on-year growth of 18.6pc. Exports of cleaning robots and intelligent bionic robots reached 18.09 billion yuan. The market for surgical robots is also expanding, with exports reaching 49 countries, up from 23, while export value increased by 3.3pc.
China’s high-end robots are now capable of performing extremely sensitive tasks. Chinese robots have even been deployed at a nuclear facility in Switzerland, helping manage operations more effectively without exposing human workers to radiation risks. They are also being used to inspect blind spots that were previously difficult or dangerous for humans to access.
In the field of artificial intelligence, China has emerged as a leading global player due to its strong human capital, complete industrial ecosystem, and massive investment. China plans to invest around $1.4 trillion by 2030 — an amount nearly three times Pakistan’s GDP.
According to Stanford University’s AI Index Report 2026, China leads the world in industrial robot installations and ranks at top in AI publication volume, citations, and patent output. China is also reshaping global AI market by offering accessible and often free AI services. Platforms such as Moonshot AI have changed market dynamics, while many US-based AI companies are finding it increasingly difficult to compete with Chinese firms. As a result, growing numbers of users are turning to Chinese AI-powered chatbots.
Advances in AI and robotics are also transforming China’s healthcare sector. In 2024, Tsinghua University launched world’s first hospital based largely on AI and robotics. It initially employed 14 AI doctors, and that number continues to grow. Tsinghua has also helped integrate AI solutions into conventional hospitals.
China is deploying AI-based healthcare services particularly to serve remote and underserved areas. AI and robotics are being used for digital admissions, predictive alerts, infusion management, diagnostics, and mobile nursing stations. Technologies such as DeepSeek are also being used to enhance patient-data security and protect privacy.
At the same time, China is making a major push into innovative drug development. The government has introduced measures to shorten development timelines and reduce costs. Experts note China can develop drugs three times faster and at roughly half the cost of Europe. The CEO of Hong Kong-listed Insilico Medicine has stated China has reduced development time by about two years.
China has also demonstrated leadership in fast-track approval of first-in-class innovative medicines in line with international standards. In 2026, the country approved 38 innovative drugs, of which 31 were domestically developed, highlighting rapid growth of China’s homegrown pharmaceutical innovation ecosystem.
These advances are strengthening global standing of Chinese companies and expanding their international market reach. During first half of 2026, China’s outbound licensing deals in pharmaceuticals reached $110 billion, roughly 80pc of total value recorded in 2025. The agreements primarily covered oncology, metabolism, immunology, and neurology, and involved partners across 20 countries and regions.
It is important to recognise China’s success is neither sudden nor accidental. It has been achieved through innovative policies, institutional support, sustained investment, talent development, and above all, continuous reform.
Since 2013, President Xi Jinping has placed strong emphasis on technological advancement. A series of policies have been introduced to accelerate innovation. In 2015, Made in China 2025 initiative, Internet Plus Action Plan, and reforms in science and technology policy were launched. The 13th Five-Year Plan prioritised strategic emerging industries, while in 2017 China introduced a dedicated national AI development plan with specific targets.
Under the 14th Five-Year Plan, investment in research and development was further increased to speed up innovation and technological progress. The 15th Five-Year Plan now aims to establish China as a global leader in innovation and technology. It is therefore reasonable to conclude China’s achievements are the result of careful planning and disciplined implementation.
In conclusion, China is carrying forward same spirit of reform and ambition into its future endeavours. Chinese policymakers understand a culture of innovation requires high-quality human capital. Accordingly, China is investing heavily in education, skills, and talent development while also seeking to attract skilled individuals from around the world.
To facilitate this, China has introduced K-visa, designed to make travel and residence easier for talented foreign professionals. The new visa category is expected to strengthen China’s ability to attract global talent and support its long-term innovation strategy.
