Twelve years ago, I visited China as a participant in a Seminar on Press and Publication for Developing Countries, alongside participants from over 20 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.
Embracing technological advancements, particularly in digital transformation and automation, is essential to enhancing efficiency and global competitiveness. Investing in education, especially in STEM fields, will help create a skilled workforce capable of driving innovation. Additionally, addressing urbanization challenges and meeting rising domestic demand for quality goods can fuel further innovation. Finally, adopting sustainable practices and complying with environmental regulations can give Pakistan a competitive edge in both domestic and international markets. These lessons can help Pakistan build a more resilient, prosperous, and innovation-led economy
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 USA 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 12 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 $349 billion in 2013 (4 percent of GDP) to $870 billion in 2023 (5.3 percent 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 $357 billion (5.5 percent of GDP) to $1.1 trillion (7 percent 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 $7,000 in 2013 to over $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 ultramodern management, administration, and marketing practices across all companies, corporations, and bodies, whether in the government or private sector. Ten years ago, many Chinese companies were primarily focused on manufacturing and cost efficiency, often lagging behind in advanced management practices and innovation. However, by 2023, these companies have evolved into world-class entities, rivaling top-notch global competitors.
In 2013, China’s corporate sector was still emerging on the global stage, with many companies struggling to adopt best practices in customer focus, quality assurance, and innovation. The emphasis was largely on scale and production capacity rather than high-quality management. Research and development spending by Chinese companies was around two percent of GDP, with most of it concentrated in state-owned enterprises.
By 2023, China’s corporate sector has undergone a dramatic transformation. Companies across the board have embraced best management practices, such as customer-centric strategies, rigorous quality assurance, aggressive marketing, and extensive automation. The corporate R&D spending has surged to 2.5 percent of GDP, with private companies playing a significant role. This shift has resulted in Chinese companies rising to the ranks of world-class firms, competing fiercely in global markets.
For example, in 2013, China had only two companies in the top 100 of the Fortune Global 500 list. By 2023, this number had grown to 14, with many more companies gaining international recognition for their innovation, quality, and customer focus. Additionally, the adoption of cutting-edge technologies like AI, big data, and automation has further propelled Chinese companies to the forefront of global competition.
This transformation is evident in sectors such as technology, where companies like Huawei and Alibaba have become global leaders, and in automotive, where Chinese electric vehicle manufacturers are challenging traditional automakers worldwide.
Pakistan can draw valuable lessons from China’s transformation into a highly efficient, innovation-driven economy. Firstly, shifting focus from an export-led growth model to a more balanced, high-value economy is crucial. This requires upgrading industries to compete globally by adopting best practices in management, quality assurance, and innovation. Government-led initiatives, similar to China’s “Made in China 2025,” can play a pivotal role in guiding this transformation, supported by increased funding for research and development and incentives for private sector growth.
Embracing technological advancements, particularly in digital transformation and automation, is essential to enhancing efficiency and global competitiveness. Investing in education, especially in STEM fields, will help create a skilled workforce capable of driving innovation. Additionally, addressing urbanization challenges and meeting rising domestic demand for quality goods can fuel further innovation. Finally, adopting sustainable practices and complying with environmental regulations can give Pakistan a competitive edge in both domestic and international markets. These lessons can help Pakistan build a more resilient, prosperous, and innovation-led economy.
