China’s Rise to Economic Prominence: Lessons for Nigeria

China story is worthy of study to developing countries aiming for a rise from economic oblivion to prominence, China some years ago was way down economically and now at the very top of the ladder, reports Michael Olugbode who was recently in China.

Focused leadership with great vision and mission is perhaps the major key to a great nation and the statement of China’s President Xi Jinping states it all: “For more than 40 years, I’ve worked in counties, cities, provinces and the central government of China. Poverty alleviation has always been a vital part of my work and I devoted most of my vigor to it. When I visited some poor areas, some children were already seven or eight years old, but they still stayed at home rather than in school. Education in poor areas must be facilitated and improved. We can’t let our children lose at the starting line. Society should give them the chance to study and to go to college, so that when they grow up, they can live a better life. At least, they can earn meals for themselves, and don’t have to live in poverty anymore.”
China’s 75th anniversary of the founding of the People’s Republic, is a story of tides and turns, from downs to ups From a nation once mired in poverty, rural backwardness, and colonial legacy to emerging as a global economic and technological power house. It is a story of timelines Before Economic Reforms (1949-1978)- Under Mao Zedong, China’s economy was state-controlled, with production goals set by the government; moving to the era of Slow Growth from 1950 to 1978, where China’s per capita GDP on a purchasing power parity (PPP) basis doubled, but growth was uneven; then to the Turbulent Periods otherwise described as the Great Leap Forward (1958-1962) and Cultural Revolution (1966-1976) where the economy was disrupted, causing significant setbacks; and China was relatively isolated from the global economy, with limited foreign trade; and then to the period the tide changed for the better, the Post-Economic Reforms (1978-Present), further classified into Rapid Growth, since 1978, China’s economy has grown at an average annual rate of nearly 10%, lifting over 800 million people out of poverty; Market-Oriented Reforms, during which Deng Xiaoping’s reforms introduced market mechanisms, special economic zones (SEZs), and foreign investment; Global Integration, a period where China joined the World Trade Organization (WTO) in 2001, boosting trade and economic ties; Manufacturing Hub, which witnessed China becoming the world’s largest manufacturer and exporter; and then Upper-Middle-Income Country, a status achieved in 2010. Now China’s GDP is the world’s second-largest, accounting for around 16% of global GDP (nominal terms), and the country is still undergoing structural reforms to rebalance its economy, focusing on innovation, domestic consumption, and green growth; and is undertaking an ambitious Belt and Road Initiative which seeks to enhance economic connectivity and influence.
Simply put, when the People’s Republic of China was established in 1949, the country was one of the poorest in the world. The aftermath of war and foreign occupation had left the economy devastated, with most of the country’s population living in rural areas under harsh economic conditions. The lack of basic infrastructure was a burden too much to bear, the literacy rates was another big load with widespread disease another letdown, these all led to make more than 80 per cent of China’s citizens living below the international poverty line, with little hope in view as the economic life was primarily agrarian and informal.
Over the following decades, the Chinese state implemented successive development campaigns, which came with mixed bags. In 1978 under the leadership of Deng Xiaoping, who introduced market-oriented reforms and opened the economy to foreign investment. These changes marked the beginning of what became known as the “Reform and Opening-Up” era—a transformation that would fundamentally reshape the country’s economic landscape. This led China into one of the most rapid industrial and technological expansions in modern history. Annual GDP growth averaged nearly 10 per cent for much of this period. Factories sprang up in coastal cities. Rural labour migrated in large numbers to urban centres. Foreign investment came in leading to many towns being transformed into manufacturing hubs. The rise of special economic zones like Shenzhen became symbolic of the broader modernisation effort. The state heavily invested in infrastructure, education, and industrial policy, which even distributed economic gains.
Modernisation was tied to the ambition of improving human well-being and eradicating poverty. China In fact, was one of the few countries in human history to have made poverty alleviation a central national strategy as China, working through both centralised plans and decentralised implementation, systematically connected economic growth to poverty reduction policies. In many regions, infrastructure development was deliberately targeted at enabling poor villages to access markets. Agricultural reforms gave farmers greater control over production and allowed them to sell surplus produce, vastly increasing rural incomes.
Even with all these efforts, by the early 2000s, poverty remained entrenched in some China’s remote, mountainous, or ethnic minority regions. At the same time, the country’s rapid economic growth had produced stark inequalities, especially between urban and rural populations, this called for a new phase in its poverty alleviation campaign, and in 2013, President Xi Jinping declared the goal of eliminating extreme poverty by 2020, an ambitious target that would define social and economic policy for the remainder of the decade.
The strategy that followed became known as “targeted poverty alleviation”, a multi-faceted approach that focused on identifying and addressing the unique needs of poor households and villages. Government officials were assigned responsibility for specific families. Data collection efforts were intensified to identify who was poor and why. Support measures were tailored accordingly—ranging from agricultural subsidies and vocational training to relocation programs for people living in environmentally fragile or inaccessible areas. The emphasis was on precision and accountability, marking a departure from broad, one-size-fits-all programmes.
Great successes were achieved and by the end of 2020, Chinese authorities have declared a complete victory in the fight against extreme poverty, stating that all 98.99 million people who had been living below the national poverty line since 2012 had been lifted out of poverty, with 832 counties and 128,000 villages previously classified as impoverished officially removed from the national poverty registry. These results were verified through third-party evaluations and confirmed by institutions including the United Nations Development Programme and the World Bank, which praised the scale and speed of China’s achievement.
This feat is even more striking when viewed in a global context. According to the World Bank, over 70 per cent of global poverty reduction since the 1980s has occurred in China. The country’s contribution to human development has reshaped the global poverty map.
Currently, China leads the world in several areas of innovation, including 5G deployment, artificial intelligence, electric vehicles, and high-speed rail. State-led investment in science and education has created an ecosystem in which technological modernisation supports not only economic growth but also public services, agriculture, and rural connectivity. This approach has allowed previously underserved regions to access digital platforms, mobile healthcare, and distance learning—further closing the development gap.
China’s journey from one of the world’s poorest nations to a global superpower stands as one of the most important development stories of the modern age. The combination of economic modernisation and poverty reduction has transformed not only the structure of the Chinese economy but also the daily lives of its people.
It is a story of planning, innovation, mobilisation, and sheer scale—one that will continue to shape the 21st century.
Nigeria’s current development indices which paint a complex picture of progress and challenges of Human Development Index (HDI) with available figure of 0.56 as of 2023, categorizing as medium. It showed
22% increase over 19 years but inequality reduces its HDI value by 32.7%. It’s GDP ranked it as Africa’s largest economy, the poverty rate has it that approximately 40.1% of Nigerians live below the national poverty line. Nigeria’s unemployment rate is very high with many youth having no jobs. Life expectancy is lower than sub-Saharan average, literacy rate showed disparities between urban and rural areas. There is gender inequality
It is faced with key challenges in infrastructure having to grapple with deficits in power, transportation, water supply, and ICT. Corruption remains endemic and hinders development, governance, and investment. Over-reliance on oil revenues makes Nigeria vulnerable to global price fluctuations; and environmental Issues such as pollution, deforestation, and climate change pose substantial threats.
It is not however all gloom as there are ongoing efforts to boost agriculture, manufacturing, and digital technology; and with participation in the African Continental Free Trade Agreement there is growth potential; renewable energy with investments in solar, wind, and hydroelectric power aim to improve energy access.
Overall, Nigeria shows potential but faces significant hurdles to achieve sustainable development and improve human well-being.
To quick climb the economic ladder,
China’s transformation offers more than inspiration—it provides tangible lessons in how to structure national development around long-term planning, inclusive growth, and strategic investment. There must be sustained efforts beyond political
political cycles to transform the country, there should not be politicking with Nigeria’s development, it should be seen as a national selfless duty since Nigeria has often struggled with policy inconsistency and the politicisation of development programmes. There is urgent need to setting in motion a focused, multi-decade plan—especially in areas like infrastructure, industrial policy, and agricultural modernisation. There is urgent yearning for technological driven economy, Nigeria needs to work on this, it is quite instructive that data is now gaining mileage in the country, but much needed to be done in that regards and Nigerians need to unite more than ever before to work for the good of the country, it is high time to see ourselves as one and not from religious or ethic dichotomy.
China’s success lied on coordinated governance—clear roles for central and local governments, and strict accountability. Nigeria needs to do same, building more effective collaboration between federal, state, and local authorities.Just as China transitioned from poverty eradication to rural revitalisation, Nigeria must also think beyond survival. It must build systems and institutions that foster sustainable prosperity, equitable growth, and social cohesion.
Nigeria needs to act fast for the world would not wait for ever to see a sleeping giant wake up to assuming its right place in the globe.