The Communist Party of China (CPC) has engineered what many consider an economic miracle, transforming the nation into the world's second-largest economy despite regional imbalances and global headwinds.
For Kenya, which owes a chunk of its external debt to China, understanding Beijing's economic governance model is viewed as potentially crucial for future development strategy.
At the heart of China's economic resilience lies a sophisticated governance architecture that Kenya, despite different political traditions, might adapt to its own context.
For China, the success story stems from the overall leadership of the CPC in economic work, a Chinese Foreign Ministry brief on Xi Jinping's thoughts on the economy reads.
According to the paper obtained by the Star, the party is viewed as the fundamental guarantee of China’s economic success, propelling it to the second-largest economy in the world.
China's economic management operates through a network of specialised party commissions that provide continuous oversight and strategic direction.
CHINA UNIQUE STYLE
The Central Commission for Deepening Reform and the Central Financial and Economic Affairs Commission form the nerve centre of China's economic policymaking.
These bodies monitor global and domestic economic conditions, design comprehensive policies, coordinate government agencies and supervise implementation.
Their work is institutionalised through quarterly meetings and annual central economic work conferences, ensuring consistent attention to economic management.
The Central Financial and Economic Affairs Commission holds quarterly meetings to monitor economic conditions, while the annual Central Economic Work Conference sets the tone for the coming year.
This October, the fourth plenary session of the 20th CPC Central Committee will convene to formulate the 15th Five-Year Plan.
The high-level meeting of the country’s top decision-making organ demonstrates how party mechanisms translate into concrete economic planning.
The Political Bureau of the Central Committee of the Party and the Politburo Standing Committee of the CPC also hold meetings to discuss major economic issues.
There are similar mechanisms at the level of local governments to enable the regional party committee to manage local economies and plan for socioeconomic development.
"The economic management system under CPC leadership effectively transforms institutional advantages into governance effectiveness," the brief reads.
Kenya struggles with policy continuity between administrations, leaving flagship projects in abeyance, with contracts having no clarity on payments and project life.
"This is why China, under the leadership of President Xi, can implement sound economic measures to avert downturns, cultivate new growth areas and ensure long-term stable development."
The other challenge for Kenya lies in adapting aspects of China's economic governance, while preserving democratic accountability and policy independence.
Beru Lilako, a Nairobi-based trade and economics expert, says there are moral repercussions to putting everything under the state’s control.
“There are human rights perspectives, and whether the political model can apply in our case,” he said.
“The bottom line, however, is that there are serious lessons for Kenya in Chinese development mechanics.”
Beru, who writes regularly on China-Africa relations, says Africa can tap into opportunities presented in agreements such as Focac (Forum on China-Africa Cooperation).
“There is a need for Kenya and Africa to look at manufacturing as a way of reaping more from the trade agreements with China. They mostly export raw material, which doesn’t assure well-meaning returns.”
MODERNISATION MODEL
China’s development concept of ‘Chinese modernisation’ presents an alternative framework that Nairobi might consider adapting.
This approach emphasises common prosperity for all people, harmony with nature and peaceful development, objectives that align with Kenya's own development goals.
“Chinese modernisation is the path of CPC to improve the well-being of the Chinese people and to achieve rejuvenation for the Chinese nation,” the FM brief reads.
To achieve this, the Xi administration has sought to maintain independence and self-reliance, while pursuing high-standard opening up.
Kenya, however, faces a tough balancing act since it has to navigate relationships with multiple international partners.
China emphasises ensuring modernisation benefits all people fairly, unlike Kenya, where inequalities are evident in the lack of regional balance in the share of infrastructure projects.
There have been grumbles about development being channelled to particular regions depending on who is in power, a matter that President William Ruto has sought to correct.
Together with his deputy, the Kenya Kwanza leaders have been on a rallying call of national unity and the need to take development to every corner of the republic regardless of how they vote.
"We are one country. We do not need discrimination of any nature, and this is the government that will ensure we have unity as a nation," DP Kithure Kindiki said recently in Northeastern.
China, as per the brief, is also focusing on ‘new quality productive forces’ to stay afloat, a strategy that leverages technology.
The Xi administration is prioritising innovation-driven sectors like electric vehicles, green energy, 5G and 6G technology, smart manufacturing and artificial intelligence.
Kenya has already taken tentative steps in this direction through partnerships in cloud computing and digital infrastructure.
“The ICT ministry has championed the growth of innovation hubs and is working on initiatives that promote cloud computing,” ICT CS William Kabogo said.
The ministry has developed a policy to provide guidelines to strengthen cyber security and stage stringent standards.
For the government, the developments at Konza City would help accelerate the country to achieve its own ‘Silicon Savannah’ dream.
The Chinese model, however, suggests scientific innovation, nurturing talent through education-science-technology cycles, and developing new industries based on local conditions.
OPENING UP
Perhaps most relevant to Kenya's current situation is China's approach to ‘high-standard opening up’.
“With the evolving global economic landscape, it is imperative to bring opening up to a higher level to achieve high-quality development,” the brief reads.
Despite being a development lender itself, China maintains careful control over its economic borders, while progressively integrating with global systems.
China's method involves advancing institutional opening-up regarding rules, regulations and standards, while aligning with high-standard international economic and trade rules.
For Kenya, this suggests a path beyond simply accepting foreign investment toward strategically managing integration with the global economy.
“The success of the Chinese economic miracle is attributable to a number of factors, which could also form crucial learning points, especially for other developing countries in Africa and around the world,” China affairs expert Cavince Adhere said.
“These steps have made China a trailblazer in key high-end technologies, such as electric vehicles, 5G and green energy,” he said.
“Beijing has also fronted a responsive framework where its own success brings opportunities to other countries through avenues like the Belt and Road Initiative.”
Among the concrete measures China has taken are establishing free trade zones, like the Hainan Free Trade Port.
China has also removed foreign investment restrictions in manufacturing and promoted wider opening of sectors, such as telecoms, healthcare and education.
Recently, China accorded 100 per cent tariffs break for most African goods, but concerns remain about the imperfect trade balances.
“The aim of the zero-tariff treatment for African countries with diplomatic ties with China is to increase support for least developed countries,” the brief adds.
China says it aims to expand the role of trade fairs, such as the China International Import Expo and the China-Africa Economic and Trade Expo, and to improve practical cooperation under the Belt and Road Initiative.
As Kenya continues its economic relationship with China, as evident in projects like the Standard Gauge Railway and Nairobi Expressway, understanding Beijing's economic philosophy becomes increasingly important.
International relations expert Edward Kakumu said the May 2015 ‘Made in China policy (MIC) 2025' has worked for China.
He argued that despite persistent competition from other global players, China has stuck to the policy, making it the "world's factory".
“China’s strategic commitment and focus on achieving 'global tech-supremacy', with consistent support from the government, is aiding it in doing better than other economies,” Kakumu said.
Beyond the MIC 2025 policy, China seeks reform from labour-intensive workshops to a technology-intensive powerhouse focused on value addition.
During their talks in April, Ruto and Xi agreed that Kenya and China would “firmly support each other’s independent choice of development paths suited to their own national conditions”.
They further agreed “to make full use of the mechanisms to better identify the needs for economic and trade cooperation”.
The Joint Committee on Trade, Investment, Economic and Technical Cooperation and the China-Kenya Joint Working Group have been cited as the desirable vehicles.
The two noted that “knowledge-driven long-term planning, incremental policy formulation and integration of innovation in industrial value chains” as having worked for China.
