The "Chinese People's Economy" goes global: From policy to practice

By Zheng Junfeng 5 décembre 2025

Merchants conducting live-stream selling of specialty agricultural products during a market day in Qianzhou Market, Xiangxi Tujia and Miao Autonomous Prefecture, Hunan Province. /CFP

When China's Commerce Minister Wang Wentao introduced the term "Chinese People's Economy" in late 2025, it was not a bureaucratic jargon, but a strategic declaration. This concept, positioned alongside the traditional "China's economy," represents a fundamental shift in how China measures success. While GDP tracks domestic activity, the focus on Gross National Income (GNI) counts earnings from overseas ventures alongside homegrown production.

The "China+N" strategy in action

The policy's practical implementation is crystallizing in what industry reports now call the "China+N" strategy. Rather than abandoning domestic strengths, this approach encourages companies to leverage China's manufacturing ecosystem as their headquarters while systematically expanding overseas operations. We see this playing out across consumer sectors: Pop Mart's pop culture toy stores thriving globally, Chinese tea and coffee chains adapting traditional flavors for Western palates, and culinary brands, like Haidilao, making hot pot familiar on the global food scene.

These examples represent a qualitative evolution in how Chinese businesses globalize. They're moving beyond exporting goods to building brands, transitioning from individual company efforts to establishing entire industrial ecosystems abroad. This shift from low-value to high-value expansion is an important part of the "Chinese People's Economy" vision.

Building the support infrastructure

Making this transition work requires robust policy architecture. China is developing comprehensive support systems including cross-border financial services, international tax coordination, and enhanced consular protection for business travelers. The government is pushing "institutional openness" — aligning Chinese standards with international norms to ease market entry. Meanwhile, upgraded bilateral investment treaties are creating safer pathways for offshore operations.

The diaspora community remains crucial to this effort. Having already contributed over 60 percent of foreign investment in China between 1979-2017, overseas Chinese now serve as cultural translators and operational partners, helping newcomers navigate local regulations and consumer preferences.

The corporate transformation

For Chinese companies, this new paradigm demands significant transformation. Success requires sophisticated localization strategies rather than simply replicating domestic models. Luckin Coffee's rapid adaptation in international markets demonstrates this well — maintaining Chinese operational efficiency while tailoring offerings to local tastes.

Compliance and risk management have become boardroom priorities as geopolitical tensions complicate cross-border operations. The most forward-thinking firms are pursuing "value co-creation" — forming partnerships that benefit both Chinese parents and host economies through local job creation and technology transfer.

Balancing challenges and opportunities

The strategy faces significant headwinds. Protectionist sentiments in some markets create barriers, while managing domestic stability alongside international expansion tests regulatory capacity. Some critics question whether resources might be overextended.

Yet the potential rewards justify the ambition. With over 50,000 Chinese enterprises already operating abroad across 190 countries, and outward total investment volume exceeding $3 trillion, the foundation is strong. As these overseas operations mature, their repatriated earnings increasingly contribute to China's GNI — directly advancing the "people-centered" development goal.

The global implications

For international observers, the "Chinese People's Economy" represents China's evolution from participant to architect of globalization. This isn't merely about building infrastructure abroad anymore; it's about creating sustainable value chains that connect Chinese innovation with global demand while sharing benefits with host countries.

The ultimate success of this model will depend on execution — both China's ability to provide smart regulation and Chinese companies' capacity to genuinely integrate into foreign markets. But one thing is clear: China is betting that its future prosperity depends not just on what happens within its borders, but on the global success of its people and their enterprises.

Editor's note: Zheng Junfeng is an anchor of CGTN Global Business. The article reflects the author's opinions and not necessarily the views of CGTN.