China’s Macroeconomic Governance:Evolution, Theoretical Innovation,Challenges, and Reform Pathways

Deng Yongbo*, Li Yuju

Research Center for Xi Jinping Thought on Economy,National Development and Reform Commission, Beijing, China

Abstract: Effective macroeconomic regulation and robust governance are vital forharnessing the advantages of China’s socialist market economy. Since the launch of reformand opening-up in 1978, China’s macroeconomic governance has progressed throughthree distinct phases: the “comprehensive balancing” stage under the planned economy(pre-1992), stage of macroeconomic regulation in transition to a market economy (1993-2012), formation and development of the macroeconomic governance system in the new era(2012-present). Through sustained theoretical innovation and practical experimentation,China has developed a unique macroeconomic governance framework. This frameworkis defined by a dynamic, multi-dimensional target management system, a cohesive set ofpolicy tools, and an institutional foundation tailored to the country’s unique context. Yet,as global transformations accelerate and internal and external risks converge, China’smacroeconomic governance faces significant challenges. Overcoming these demands furtherrefinement of regulatory systems, coordinated reforms in key areas such as fiscal policy,taxation, and finance, greater alignment in macroeconomic policy, and the modernization ofgovernance through digital advancements.

Keywords: Macroeconomic governance; historical development; theoretical innovation;

JEL Classification Codes: E60; O53

DOI: 10.19602/j.chinaeconomist.2025.05.04