Whether or not China’s model proves sustainable or attractive to other countries, it is clear that the country’s policies are central to its vision of becoming a dominant global player in the current century.
By Ningthem Nongmai
China’s rise as a global superpower has not only shaped the dynamics of geopolitics and international trade but has also prompted the nation to refine its internal economic and social structures. The “Dual Circulation” strategy, the drive for “Common Prosperity,” efforts at social rebalancing, and the imposition of ideological correctness under the Chinese Communist Party (CCP) represent key elements in the evolving governance model under Xi Jinping. This is why there is a need to reflect on these policies, their implications for China’s internal cohesion, and how they position China within the emerging global order.
The Dual Circulation System
Introduced by Xi Jinping in 2020, the Dual Circulation Strategy represents China’s blueprint for economic growth in the coming decades. The strategy focuses on fostering both internal circulation (domestic economic activity) and external circulation (international trade and investment). It aims to shift China’s growth model away from excessive reliance on external demand and global supply chains, while ensuring self-sufficiency and resilience.
The internal circulation aspect focuses on boosting domestic consumption, expanding China’s middle class, and reducing economic inequality. By emphasizing internal demand, the CCP aims to develop a robust domestic market that can drive growth even amidst global economic volatility. External circulation continues to be significant, but rather than being solely an export-oriented economy, China now seeks to enhance the quality of its trade and attract foreign investments that align with its domestic goals.
This shift addresses vulnerabilities exposed by global trade disruptions (such as the US-China trade war and the COVID-19 pandemic), while positioning China as a more self-reliant economy. The dual circulation framework thus supports economic security as a priority in a more protectionist global economy.
Common Prosperity
Xi Jinping’s push for Common Prosperity represents another critical policy that intertwines with the dual circulation system. Announced as a means to address growing wealth inequality, common prosperity seeks to reduce the income gap, ensuring that economic growth benefits the broader population rather than remaining concentrated among the elite. This move is an attempt to create more equitable social conditions in China, emphasizing the redistribution of wealth through progressive taxation, corporate responsibility, and welfare policies.
While this policy may resonate with the CCP’s socialist roots, its real-world application has significant implications for China’s wealthy class and private enterprises. Crackdowns on powerful tech giants and regulatory oversight of high-income sectors, including the finance and real estate industries, reflect the government’s attempts to rebalance power away from the ultra-wealthy. Education reforms, housing affordability measures, and restrictions on the private tutoring sector further illustrate the state’s effort to curb social inequalities.
Common prosperity aligns with the CCP’s broader goal of social stability. Economic disparity has the potential to fuel social unrest, and ensuring a fairer distribution of wealth can prevent the kind of destabilization that could threaten the Party’s control. This policy also reinforces the narrative that the Party’s governance serves the people’s interests, thus consolidating the CCP’s political legitimacy.
Social Rebalancing and the Social Credit System
Closely connected to the push for common prosperity is China’s focus on social rebalancing through mechanisms like the Social Credit System (SCS). The SCS is designed to monitor and evaluate the behavior of individuals and businesses, rewarding those who adhere to rules and regulations and punishing those who do not. It is seen as a tool to enhance trustworthiness in society by promoting ethical behavior, civic responsibility, and lawful conduct.
The Social Credit System reflects China’s desire to modernize governance through technology, using data collection, artificial intelligence, and surveillance to maintain social order. It also seeks to instill a culture of compliance, not only in the economic realm but also in areas of personal behavior and morality. While critics view this system as Orwellian, supporters argue that it helps curb fraud, corruption, and misconduct—thereby enhancing social harmony.
In terms of social rebalancing, this system contributes to narrowing inequality by fostering fairer economic competition. Businesses are incentivized to adhere to legal standards, and individuals benefit from a system that rewards good behavior with better access to services and opportunities.
Ideological Correctness and the CCP’s Vision in the New World Order
China’s ideological correctness stems from the CCP’s Marxist-Leninist principles, which have been adapted to China’s modern-day governance. Xi Jinping Thought has been enshrined into the Party’s constitution, reflecting his vision for China’s socialist development. Ideological correctness involves the promotion of national unity, cultural cohesion, and adherence to the CCP’s values, especially in education, media, and public discourse.
One aspect of this ideological push is the national rejuvenation campaign, which is seen as a response to the “century of humiliation” China experienced at the hands of foreign powers in the 19th and early 20th centuries. This sense of historical vindication drives China’s foreign policy, especially its ambitions to reshape the global order by challenging Western dominance.
On the international stage, China increasingly frames itself as a defender of multipolarity, offering an alternative to the Western liberal order. Its involvement in initiatives such as the Belt and Road Initiative (BRI) and leadership roles in organizations like the BRICS (Brazil, Russia, India, China, and South Africa) bloc and the Shanghai Cooperation Organization (SCO) are part of its strategy to expand influence across developing nations and reshape international norms. These efforts reflect China’s broader geopolitical ambition to create a global environment that is more conducive to its economic and political model, positioning itself as a rival to the United States and its allies.
Final Take
China’s dual circulation system, its drive for common prosperity, social rebalancing through the social credit system, and the insistence on ideological correctness represent key facets of its current governance strategy. These policies reflect China’s effort to maintain social stability and economic resilience, even as it aims to reshape global power structures in line with its interests.
As China navigates the complexities of the new world order, it is essential to recognize that these internal strategies are not only about maintaining control but also about presenting a viable alternative to the Western model of liberal democracy and capitalism. Whether or not China’s model proves sustainable or attractive to other countries, it is clear that these policies are central to China’s vision of becoming a dominant global player in the 21st century.
(Ningthem Nongmai is an international politics watcher. This write-up is the first on a series of articles on global politics to be published by TFM)