TWELVE years ago, I visited China as a participant in a Seminar on Press and Publication for Developing Countries, alongside participants from over twenty nations. During our month-long training and informative visit, we toured many leading organizations, departments, and industrial undertakings. At that time, China was still grappling with the challenge of opening up to the world while maintaining its one-party structure and socialist ideals, all while striving for nationwide progress and development. In the industrial sector, we observed strict government control. Although industrial and manufacturing processes had begun to improve, the focus was still largely on quantity rather than quality. However, it was evident that the leadership recognized the need to adopt modern management and administrative methods. These practices were just starting to take root in the industrial sector but had not yet reached the desired level of effectiveness.
To accelerate progress and create a highly skilled workforce capable of transforming the industrial and manufacturing sectors, the government established numerous institutes across the country to teach English at the school level. Additionally, they began sending hundreds of thousands of students to universities in the US and Europe to acquire critical knowledge, skills, and leadership abilities necessary for modernizing Chinese enterprises. At that time, the organizations we visited used conventional methods to present their performance, focusing primarily on numbers without emphasizing customer satisfaction, quality control, employee value, or creating an enabling environment for optimal employee performance. There was little emphasis on streamlining industrial and manufacturing processes to achieve high quality and product durability.
After twelve years, upon returning to China, we observed two significant changes. The most important was the government’s recognition of the critical need to develop high-quality human resources, starting from the grassroots level. The government rightly understood that all state resources should be directed toward empowering and educating the people. Their goal was to ensure that the populace was happy, confident, knowledgeable, and highly skilled. This approach would not only enhance the quality, style, and dignity of work processes but also enable each skilled individual to create more wealth and contribute higher taxes, ultimately enriching the state.
With increased financial resources, the state would gain the financial space necessary to further invest in human resource development. As the state becomes wealthier and more prosperous, it would earn respect, dignity, and value in the international community. This financial space could then be used to secure raw materials from around the world and invest in research and development, fostering a culture of innovation that would allow China to compete globally by producing high-quality products that rival those of other nations.
Over the past decade, China has significantly increased its investment in developing high-quality human capital, aiming to make its people happier and more prosperous. In education, spending rose from USD 349 billion in 2013 (4% of GDP) to USD 870 billion in 2023 (5.3% of GDP), with a strong emphasis on vocational training, digital literacy, and STEM education to create a more skilled and adaptable workforce. Healthcare investment similarly grew from USD 357 billion (5.5% of GDP) to USD 1.1 trillion (7% of GDP), focusing on improving access to modern healthcare services, addressing public health challenges, and ensuring better overall well-being. Additionally, the widespread adoption of WeChat has revolutionized how people meet their obligations toward the government and manage everyday tasks, from making purchases to accessing public services, further enhancing convenience and efficiency in daily life. China’s per capita income also saw a substantial increase, rising from approximately USD 7,000 in 2013 to over USD 12,000 in 2023, reflecting the overall improvements in living standards and economic prosperity driven by these investments.
The second major transformation in China over the past decade has been the adoption of ultra-modern management, administration, and marketing practices across all sectors, both government and private. Ten years ago, Chinese companies focused mainly on manufacturing and cost efficiency, often lagging in advanced management and innovation. In 2013, China’s corporate sector was emerging on the global stage, struggling with best practices in customer focus, quality assurance, and innovation. Emphasis was on scale and production capacity rather than management quality. Research and development (R&D) spending was around 2% of GDP, mainly in state-owned enterprises (SOEs). By 2023, China’s corporate sector has dramatically transformed. Companies now embrace best management practices, including customer-centric strategies, quality assurance, marketing, and automation. R&D spending has surged to 2.5% of GDP, with private companies playing a significant role. This shift has elevated Chinese companies to global competitiveness.
For example, China had only two companies in the top 100 of the Fortune Global 500 list in 2013. By 2023, this number grew to 14, with many gaining international recognition for innovation and quality. The adoption of technologies like AI, big data, and automation has further propelled Chinese firms. Companies like Huawei and Alibaba are now global leaders, and Chinese electric vehicle manufacturers are challenging traditional automakers worldwide.
Pakistan can learn from China’s transformation. Shifting from an export-led growth model to a balanced, high-value economy is crucial. Upgrading industries to compete globally by adopting best practices in management, quality assurance, and innovation is essential. Government-led initiatives and increased funding for R&D, along with incentives for private sector growth, are key. Embracing technological advancements, investing in STEM education, and addressing urbanization challenges will enhance efficiency and global competitiveness. Sustainable practices and environmental compliance can also provide a competitive edge in both domestic and international markets.
—The writer is a former Press Secretary to the President.
