The expert explained how China under Xi Jinping managed to overcome poverty: the transformation from an agrarian society to an industrial state

Oleksandr St. Lozovytkyi, Ph.D. in Political Science, Professor, European Association of Chinese Studies (Paris, France, EU)

The problem of poverty in China represents one of the key aspects of the country’s socio-economic development, reflecting the complex processes of transformation from an agrarian society into an industrial power.

By 1949, at the moment of the founding of the People’s Republic of China, GDP per capita was less than 50 dollars, and the rural population, making up 90% of the total, suffered from chronic undernourishment. Mao Zedong’s policies (1949-1976) were aimed at industrialization. Deng Xiaoping’s reforms starting in 1978 marked the transition to a market economy, which led to unprecedented GDP growth of up to 10% annually and the reduction of poverty by 800 million people by 2012.

The early efforts of the PRC were oriented toward centralized planning and social mobilization. The land reform of 1950-1952 redistributed 47% of arable land among 300 million peasants, reducing inequality. The cooperativization of 1953-1956 and the people’s communes of 1958 increased productivity.

Recovery in 1962–1965 included Liu Shaoqi’s «Eight Points», which stimulated private farming, reducing hunger by 50%.

A positive aspect was the basic distribution system and the «five guarantees» (food, clothing, housing, medical care, funerals) for the poor. By 1976, GDP per capita was 165 dollars, and poverty was 85%. Analysis shows that Maoist measures reduced absolute poverty by 10-15% through industrialization, but did not solve structural problems.

The transition to a «socialist market economy» in 1978 became a turning point in this and many other issues. The Household Responsibility System (HRS) de-collectivized agriculture, and peasants received the right to lease land, which increased productivity by 30% and reduced poverty from 88% in 1981 to 53% in 1987.

According to World Bank data, in 1981, 88% of China’s population, about 850 million people, lived below the extreme poverty line, but by 2012 this figure had decreased to 1.7%. This success was largely due to legal reforms initiated in 1978 under the leadership of Deng Xiaoping and subsequent legislative initiatives. For example, special economic zones such as Shenzhen, created in 1980, attracted investment, creating 10 million jobs by 1990.

In 1986, a «development-oriented» policy began, with the creation of the State Committee for Poverty Alleviation and the «8-7 Program» of 1994–2000, aimed at 592 poor counties. By 2000, the number of poor decreased from 250 million to 32 million people. At the same time, funding grew from 1 billion yuan in the 1980s to 100 billion yuan in 2000.

At the same time, the migration of 100 million rural residents to cities by 2000 increased incomes by 40%. Nevertheless, GDP growth of 9.5% annually and exports rising from 18 billion dollars in 1978 to 250 billion in 2000 reduced poverty by 600 million.

In the 21st century, policy evolved toward a combination of growth and social support. For example, the «Rural Development Program 2001-2010» covered 725 counties, investing 200 billion yuan in education and healthcare. The abolition of the agricultural tax in 2006 and subsidies for reforestation increased farmers’ incomes by as much as 20%.

The minimum living standard system covered 40 million poor people, providing 200–300 yuan per month. By 2012, poverty had decreased to 10.2% and amounted to 98.99 million people.

In addition, the «11th Five-Year Plan» of 2006-2010 integrated western development, reducing disparities, and GDP per capita in western provinces grew by 12%. However, challenges such as environmental degradation and inequality required new approaches.

By 2012, measures evolved from relief aid in 1949-1976 to development-oriented reforms in 1978–2000 and the integration of social protection in 2000-2012, reducing the poor from 850 million to 99 million. The key factor was economic growth, during which GDP increased 30 times, but success depended on state programs such as HRS and «8-7».

The legal and legislative framework in the field of poverty alleviation in China was formed against the backdrop of the transformation of the economy from planned to market-oriented, which was accompanied by the creation of a unique system of laws, decrees, and programs aimed at poverty reduction.

After the creation of the PRC in 1949, the fight against poverty was based on the ideology of socialist equality, enshrined in the Constitution of the People’s Republic of China of 1954, which proclaimed the right of citizens to work and social security (Article 91).

The land reform of 1950-1952, enshrined in the «Land Reform Law of the People’s Republic of China» of 1950, redistributed 47% of arable land among 300 million peasants. This law became the first legal act aimed at eliminating feudal inequality, but its implementation was accompanied by repression and limited effectiveness due to the lack of infrastructure.

In the 1950s, the collectivization policy, enshrined in the «Regulation on Agricultural Production Cooperatives» of 1956.

The «Five Guarantees» program, implemented in the 1950s and enshrined in local decrees, provided basic needs (food, clothing, housing, medical care, funerals), but lacked a unified legislative design, which reduced its coverage.

The transition to a market economy, begun in 1978, was accompanied by the creation of a new regulatory framework that stimulated economic growth and reduced poverty. A key act was the resolution of the 3rd Plenum of the 11th CPC Central Committee of 1978, which legalized the «Household Responsibility System».

The 1979 «Decision on Some Issues Concerning the Acceleration of Agricultural Development» granted peasants the right to lease land, increasing yields by 30% and reducing poverty from 88% in 1981 to 53% in 1987. HRS was consolidated in the «Law on Land Contracts in Rural Areas» of 1984, which guaranteed peasants long-term land rights for up to 15 years.

In 1986, the State Committee for Poverty Alleviation (LGOP) was created, whose activities were regulated by the State Council decree «On Measures for Poverty Reduction in Rural Areas».

The legal framework was supplemented by regional decrees, for example, the «Notice of the State Council on Policies and Measures for the Development of Western Regions» of 2000, which stimulated infrastructure projects.

We see that the legal framework of the 1980s-1990s was oriented toward economic growth, not social protection.

In the 21st century, China moved to a comprehensive legal policy integrating economic growth and social protection. The «National Rural Poverty Reduction Program 2001–2010», approved by the State Council of the PRC, provided investments in 725 counties amounting to 200 billion yuan with a focus on education and healthcare.

Further, the «Agricultural Law of the People’s Republic of China» of 2002 consolidated subsidies for farmers and the abolition of the agricultural tax in 2006, which increased farmers’ incomes by 20%.

The minimum living standard system (Dibao), introduced by the «Regulation on Minimum Living Standard Guarantee for Urban Residents» of 1999 and expanded to rural areas in 2007, covered 40 million people, providing 200-300 yuan per month.

The Constitution of the People’s Republic of China (2004 amendments) enshrined the right to «material assistance» for the poor (Article 45), which became the legal basis for scaling up programs.

The already mentioned «11th Five-Year Plan» (2006-2010) and «12th Five-Year Plan» (2011-2015) integrated poverty alleviation into the national strategy, with a focus on western regions.

Further, the State Council decree «On a New Stage of Poverty Reduction» of 2011 introduced the national poverty line in the amount of 2,300 yuan/year in 2010 prices, which made it possible to identify 98.99 million poor in 2012. And the «Targeted Poverty Alleviation» program of 2013, although it began later, was already based on the legal framework of the 2000s, including registries of poor households and monitoring.

With the coming to power of Xi Jinping in 2012, the fight against poverty in China acquired new momentum, becoming one of the key goals of state policy. At the time of the beginning of his leadership, despite the significant successes of Deng Xiaoping’s reforms, about 98.99 million people, which was 10.2% of the population, remained below the national poverty line. Xi Jinping proclaimed the complete eradication of extreme poverty by 2020 as a central task, integrated into the concept of the «Chinese Dream» and a «moderately prosperous society». This was accompanied by the creation of a new legal and regulatory framework, including the strategy of «targeted poverty alleviation», which was distinguished by a systematic approach, strengthening of administrative control, and digital technologies.

Thus, the coming to power of Xi Jinping coincided with the conclusion of the «12th Five-Year Plan for National Economic and Social Development» of 2011–2015, which fixed the national poverty line at the level of 2,300 yuan per year and identified 98.99 million poor in 2012. In the next year, Xi Jinping proposed the concept of «targeted poverty alleviation», first voiced during an inspection trip to Hunan Province. This strategy was enshrined in the «Decision of the CPC Central Committee on Major Issues Concerning Comprehensive Deepening of Reforms» of 2013, where poverty alleviation was declared a priority of national development. The document emphasized the need for an individualized approach, including the identification of poor households, targeted measures, and monitoring.

A key legal act was the State Council decree «Opinions of the State Council on Promoting Targeted Poverty Alleviation» of 2014, which introduced a system of registries of poor households and obliged local authorities to develop plans for each county. They included data on income, housing, health, and education, which made it possible to cover 89.62 million people by 2016. The entire legal framework relied on the Constitution of the PRC of 2004 (Article 45), guaranteeing the right to material assistance, and was supplemented by amendments to the «Agricultural Law of the People’s Republic of China» of 2012, which strengthened subsidies for farmers.

From 2015, the regulatory framework expanded through a series of decrees and programs. The «Plan for Implementing the Basic Strategy of Targeted Poverty Alleviation» of the State Council of the PRC in 2015 identified five directions:

industrial development;

relocation from poor areas;

education;

healthcare;

social protection.

The next decree, «Notice of the State Council on Ensuring the Stability of Poverty Alleviation Achievements» of 2016, introduced a monitoring mechanism to prevent a return to poverty (10-15% of cases in the 2010s due to illness or natural disasters).

Social protection was strengthened through the minimum living standard system (Dibao), expanded by the decree «Opinions of the State Council on Improving the Social Assistance System» of 2014.

Amendments to the «Social Insurance Law of the People’s Republic of China» of 2018 ensured access to medical insurance for 95% of the poor population, reducing treatment costs by 60%. And the relocation program, enshrined in the «National Plan for Poverty Alleviation Relocation» of 2016, moved 9.81 million people from mountainous and ecologically unfavorable areas into new settlements with housing and jobs.

At the same time, digital technologies became a new element of legal regulation. The decree «Notice of the State Council on Digital Poverty Management» of 2017 required the use of databases and Artificial Intelligence for monitoring and resource distribution. This made it possible to increase the accuracy of payments.

At the same time, regional inequality still remained a key challenge. The «Opinions of the State Council on Deepening the Western Development Strategy» of 2010, updated in 2017, provided for investments in infrastructure (600 billion yuan in 2012-2020) and tax benefits for poor counties. The decree «Notice of the State Council on Green Development Supporting Poverty Alleviation» of 2018 integrated ecological measures, including subsidies for reforestation, which increased farmers’ incomes by 15% in Sichuan and Yunnan provinces.

The legal and regulatory framework of China in the field of poverty alleviation since 2012 under the leadership of Xi Jinping represents a comprehensive system, including decrees, programs, and digital tools. The key acts are the «Action Plan for Targeted Poverty Alleviation» of 2015, the Dibao reforms, and the relocation laws, which ensured the elimination of extreme poverty by 2020.

The effectiveness of the legal framework is confirmed by statistics: from 2012 to 2020, poverty decreased from 98.99 million to less than 1 million people. Success was due to political will, investments (1.6 trillion yuan), and digitalization, but regional disparities and high administrative costs remain challenges.

With the coming to power of Xi Jinping, the PRC made the fight against poverty one of the key tasks of state policy, integrating it into the concept of the «Chinese Dream» and the building of a «moderately prosperous society». Xi Jinping proclaimed the ambitious goal of the complete eradication of extreme poverty by 2020, which became an unprecedented challenge for a country with a population of more than 1.4 billion people.

By 2012, China had already achieved significant success in reducing poverty. However, regional disparities remained an acute problem, since about 80% of the poor population lived in western provinces such as Gansu, Yunnan, and Xinjiang, where access to infrastructure and services was limited. In addition, the high risk of returning to poverty for 15-20% of households due to illnesses, natural disasters, or economic instability required a new approach.

In 2013, Xi Jinping proposed the concept of «targeted poverty alleviation», first voiced in Hunan Province. This strategy emphasized targeted assistance, based on the precise identification of those in need and individualized support measures. It combined economic growth, social programs, and digital technologies, allowing the poverty level by the international line to be reduced to 0.6% by 2020.

Economic growth from 2012, when GDP was 8.5 trillion dollars, to 14.7 trillion dollars in 2020, provided the financial basis for the programs. The average annual growth of GDP per capita from 6,300 to 10,500 dollars increased tax revenues, allowing 1.6 trillion yuan to be directed toward poverty alleviation. Western regions, such as Gansu and Yunnan, received 40% of these funds, which reduced the gap with eastern provinces.

The economic policy of Xi Jinping, enshrined in the «12th Five-Year Plan» of 2011–2015 and the «13th Five-Year Plan» of 2016-2020, emphasized industrial development, urbanization, and innovation. These factors became drivers of poverty reduction through the creation of jobs, infrastructure, and social programs.

The mechanisms of using economic growth included:

First, economic growth stimulated industrial development, creating 20 million jobs in poor counties. Support programs for cooperatives, especially in agriculture, increased incomes by 30%. For example, e-Сommerce, supported by the economic boom, attracted 2 million farmers in Guizhou to online trade, increasing their incomes by 25%.

Second, economic growth made it possible to invest 600 billion yuan in the infrastructure of western regions. This improved access to markets and services, reducing poverty in 832 poor counties. For example, in Yunnan new roads increased the export of agricultural products by 20%, stabilizing farmers’ incomes.

Third, the growth of tax revenues financed the minimum living standard system, which covered 43.35 million people by 2019 with payments of 300–500 yuan per month. This prevented a return to poverty for 10 million households, especially in regions with low economic potential.

Fourth, investments in human capital, amounting to 200 billion yuan in education and 10,000 new clinics, reduced illiteracy from 10% to 2% and reduced medical expenses by 60% for 95% of the poor population. All this strengthened the economic resilience of households, especially in rural areas.

Fifth, economic growth supported the introduction of digital technologies, such as Big Data platforms and the Social Credit System (SCS). For example, in Guizhou Big Data identified 1.2 million poor households with 98% accuracy, which optimized subsidies.

The strategy of «targeted poverty alleviation», officially launched in 2014, was based on five key directions: industrial development, relocation, education, healthcare, and social protection.

A central element was the system of registries of poor households, which by 2016 covered 89.62 million people. The registries contained detailed information about incomes, housing, health, and educational needs, which made it possible to develop individual assistance plans, minimizing errors and corruption.

One of the main directions was the creation of jobs through the support of small businesses and agricultural cooperatives. To reduce dependence on unstable sources of income, such as agriculture, programs of economic diversification were launched. The decree on the support of agricultural cooperatives of 2015 provided tax benefits and preferential loans in the amount of 200 billion yuan, creating 20 million jobs. And the program of industrial development for poor regions, launched in 2016, subsidized small businesses, which increased incomes by 30% in 832 poor counties by 2020.

For example, in Sichuan Province, cooperatives for tea and fruit cultivation provided stable income for 15,000 households. In Guizhou, the development of e-commerce attracted 2 million farmers to online trade, which increased their incomes by 25%. These measures not only reduced poverty but also diversified sources of income, reducing dependence on unstable agriculture.

A large-scale relocation program, launched in 2016, moved 9.81 million people between 2016 and 2020 from ecologically unfavorable and hard-to-reach areas to new settlements equipped with housing, schools, and jobs. The cost of the program amounted to 600 billion yuan, and by 2020, 95% of the relocated population had stable income. Infrastructure projects, including the construction of roads and irrigation systems worth 600 billion yuan, improved access to markets and services, stabilizing incomes in western regions.

For example, in Guizhou Province, 1.88 million people were relocated to urbanized areas, where 70% found work in industry or services. This measure eliminated geographical barriers, providing access to economic opportunities.

Moreover, education became an important tool of long-term poverty reduction. Investments amounting to 200 billion yuan provided access to schools for 90% of children in poor regions. The «Nine-Year Compulsory Education» program reduced the illiteracy rate from 10% to 2% in 832 poor counties. In Yunnan Province, 500,000 children received scholarships, which reduced school dropout by 40%. These measures increased human capital, creating a basis for sustainable incomes in the future.

Healthcare also became a priority. High medical expenses were one of the main reasons for returning to poverty, accounting for about 40% of cases in the 2010s. Reforms enshrined in the «Social Insurance Law» of 2018 provided medical insurance for 95% of the poor population, reducing treatment costs by 60%. The «Healthy China 2030» program financed the construction of 10,000 clinics in rural areas, which reduced the risk of returning to poverty due to illness from 15% to 5%. For example, in Yunnan subsidies for the treatment of chronic diseases covered 1.5 million people, stabilizing their financial situation. Telemedicine, introduced in western regions, provided access to diagnostics for 1 million people, minimizing financial losses from treatment.

The next direction is social protection. With the coming to power of Xi Jinping in 2012, China made social protection a key element of the «targeted poverty alleviation» strategy, eliminating extreme poverty by 2020. Since 2014, in accordance with the decree «On Improving Social Assistance», Dibao was integrated with digital registries and healthcare reforms. In addition, it was integrated with digital registries of poor households, which made it possible to monitor the incomes of 89.62 million people and dynamically adjust payments taking inflation into account, as well as to increase the transparency of fund distribution.

The mechanisms of social protection included:

First, the Dibao system, which by 2019 covered 43.35 million people, providing 300-500 yuan per month. This prevented a return to poverty for 10 million households, especially in Hubei, where 2 million people received support due to illnesses.

Second, reforms enshrined in the «Social Insurance Law» of 2018 provided insurance for 95% of the poor, reducing treatment costs by 60%.

Third, investments of 200 billion yuan reduced illiteracy from 10% to 2%. In Yunnan, 500,000 children received scholarships, which reduced school dropout by 40%.

Fourth, the integration of Dibao with Big Data and the Social Credit System (SCS) increased the transparency of payments and the quality of digital monitoring. In Guangdong, the «Poverty Alleviation Cloud» platform reduced corruption to 2%, and in Guizhou digital registries covered 1.2 million households.

These measures provided basic financial stability, especially for the elderly and families with children.

Regional inequality decreased thanks to the «Western Development Strategy» of 2017, which invested 600 billion yuan in infrastructure, including roads and irrigation systems. This increased GDP per capita in western provinces by 12% over 2012–2020.

Environmental degradation threatened the incomes of 30% of rural households. The decree «On Green Development in the Fight Against Poverty» of 2018 consolidated the integration of ecological measures with anti-poverty programs, emphasizing reforestation, sustainable agriculture, and ecotourism.

Key ecological initiatives:

First, the «Grain for Green» program, expanded in 2018, since 1999 restored 33 million hectares of land by 2020, providing employment for 5 million people. Subsidies for sustainable agriculture in the amount of 50 billion yuan increased yields by 15%, and the development of ecotourism in Yunnan created 1 million jobs, attracting 500,000 tourists annually.

Second, the development of ecotourism in poor regions such as Yunnan created 1 million jobs, increasing incomes by 20%. For example, projects in the Dali area attracted 500,000 tourists, providing income for 10,000 households.

Third, subsidies for green technologies amounting to 20 billion yuan increased yields by 15% in western regions, stabilizing the incomes of 2 million farmers. And in Gansu, irrigation projects reduced vulnerability to droughts by 20%.

Fourth, the relocation of 9.81 million people from ecologically unfavorable areas to new settlements with infrastructure ensured stable income for 95%. In Guizhou, 1.88 million relocated people received jobs in industry.

At the same time, these ecological initiatives successfully combined with social protection and digitalization. For example, in Yunnan digital platforms tracked participation in ecological projects, increasing the transparency of payments. Economic growth provided funding, and healthcare reforms reduced returns to poverty due to illness from 15% to 5%. All these measures not only reduced poverty but also decreased the ecological vulnerability of rural regions.

At the same time, digitalization became a revolutionary factor in the fight against poverty. The decree «On the Digitalization of Poverty Management» of 2017 introduced Big Data and Artificial Intelligence platforms for monitoring and resource distribution. Economic growth provided resources for digital infrastructure, including 5G and cloud technologies, covering 98% of poor counties by 2020.

The mechanisms of applying digitalization included:

Registries of poor households. The Jiandang Lika system covered 89.62 million people, collecting data on income, housing, and health. This reduced errors in payments by 90% compared to the 2000s.

The social credit system, introduced in 2014, which was integrated with anti-poverty programs, encouraging participation in cooperatives and employment.

Digital platforms such as Taobao attracted 2 million farmers in Guizhou to online trade, increasing incomes by 25%. Digital skills training programs covered 5 million people, stabilizing incomes in rural regions.

Healthcare monitoring, during which digital platforms tracked the health of 95% of the poor population, reducing returns to poverty due to illness from 15% to 5%.

Digital monitoring of the relocation of 9.81 million people ensured the adaptation of 95% of the relocated population.

For example, in Guangdong, the «Poverty Alleviation Cloud» platform reduced corruption losses from 10-15% to 2%, ensuring transparency of payments. And in Guizhou digital registries identified 1.2 million poor households with 98% accuracy, which optimized subsidies. Moreover, mobile applications allowed citizens to apply for aid, and local authorities to track progress in real time. By 2020, 98% of poor counties were using digital management systems. This reduced errors in assistance by 90% compared to previous periods.

And finally, in the process of fighting poverty, the most important role was played by the Social Credit System (SCS), officially announced in 2014 as a tool for increasing trust in society. SCS, combining financial credit with the assessment of social behavior, was adapted to monitor and stimulate participation in anti-poverty programs, contributing to targeted assistance and preventing corruption.

The «targeted poverty alleviation» strategy, proposed by Xi Jinping, emphasized individualized assistance, where SCS became a key element. The official plan «On Building the Social Credit System (2014-2020)» of the State Council of the PRC defined it as a system for monitoring and evaluating trust for individuals, businesses, and institutions. Economic growth of GDP from 8.5 trillion dollars in 2012 to 14.7 trillion dollars in 2020 provided resources for implementation, and investments of 1.6 trillion yuan in anti-poverty programs made SCS a tool for increasing efficiency.

SCS evolved from financial credit to the assessment of social behavior, including participation in employment programs and cooperatives. In pilot cities such as Hangzhou, Nanjing, and Suzhou, SCS was integrated with local initiatives for poverty alleviation. By 2017, the NDRC and the People’s Bank of China had chosen model cities where SCS was tested for monitoring resources. This made it possible to reduce corruption and increase transparency, especially in western regions.

SCS was integrated with the registry system of poor households, which covered 89.62 million people by 2016. In pilot programs, SCS monitored participation in anti-poverty measures: a high rating opened access to preferential loans and subsidies, while a low one limited them. For example, in Hangzhou 15% of the population activated SCS accounts, where the rating influenced priority in Dibao programs, which covered 43.35 million people by 2019. This stimulated activity: farmers with a high rating received priority in cooperatives, which increased their incomes by 20-30%.

SCS was used to encourage economic activity in poor regions. In Sichuan Province, farmers participating in tea-growing cooperatives in 15,000 households received higher credit ratings, making access to preferential loans of 200 billion yuan easier. The already mentioned decree «On the Support of Agricultural Cooperatives» of 2015 linked the rating with access to resources, motivating participation in programs that created 20 million jobs by 2020. In Guizhou, SCS stimulated e-commerce, attracting 2 million farmers to online trade, increasing incomes by 25%.

In social protection, SCS monitored risks of returning to poverty. The «Healthy China 2030» program of 2016 used SCS data to track the health of 95% of the poor population, reducing returns due to illnesses from 15% to 5%. In Yunnan, SCS identified 1.5 million people with chronic diseases, providing subsidies for treatment. Dibao, integrated with SCS, dynamically adjusted payments of 300–500 yuan per month, preventing a return for 10 million households.

Ecological programs such as «Grain for Green» restored 33 million hectares of land, providing employment for 5 million people and increasing incomes by 15% in western provinces. SCS encouraged participation, awarding a high rating for reforestation, which increased subsidies by 50 billion yuan and incomes by 15% in Yunnan and Sichuan. For example, the decree «On Green Development in the Fight Against Poverty» of 2018 integrated SCS to monitor sustainable farming, reducing land degradation by 20%. In 2022–2025, subsidies for green agriculture amounting to 50 billion yuan improved the environment by 19.5% in poor areas. This not only prevented returns to poverty due to soil degradation but also contributed to sustainable development. Globally, China inspired the UN, sharing its experience at international forums of 2025.

The relocation program of 2016-2020, which moved 9.81 million people, used SCS to monitor adaptation. In Guizhou, 1.88 million relocated people received high ratings for participation in employment, which ensured 70% stable income. SCS monitored compliance with rules in new settlements, reducing corruption in housing distribution.

Nevertheless, by 2020 poverty by the national line had been eliminated, and by the international line reduced to 0.6%. This became possible thanks to a combination of legislative acts, administrative decrees, and financial mechanisms. SCS increased efficiency: by 2020, in Hangzhou and Suzhou SCS pilots increased participation in programs by 15-20%. SCS also contributed to China’s 75% share in global poverty reduction.

The Social Credit System under Xi Jinping became an important instrument in poverty reduction, integrating with «targeted poverty alleviation» to monitor, stimulate employment, and reduce corruption. It ensured the eradication of extreme poverty by 2020, contributing to global efforts. However, SCS caused criticism because of ethical issues, confidentiality, and potential discrimination, especially for households with low ratings.

Thus, the initiatives proved their effectiveness, and by 2020 the number of poor decreased from 98.99 million to less than 1 million people, and the risk of returning to poverty decreased from 20-30% to 5-10%. The Dibao, healthcare, and relocation programs stabilized the incomes of 90% of formerly poor households. Economic growth provided funding, and digitalization increased the accuracy of resource distribution.

The achievements of the PRC in poverty reduction under Xi Jinping during this period include the elimination of extreme poverty, the creation of 20 million jobs, the relocation of 9.81 million people, the expansion of social protection for 43.35 million people, and the introduction of digital technologies. Success was due to economic growth, the strategy of «targeted poverty alleviation», political will, and a targeted approach. These measures ensured the sustainability of the results, eliminating extreme poverty by 2020.

After the announcement of the complete eradication of extreme poverty in 2020, the People’s Republic of China moved to a new stage – the consolidation and expansion of the achieved results, integrating them with rural revitalization. The period of 2022-2025, as part of the five-year transition period of 2021-2025, became key to preventing a return to poverty and ensuring sustainable development. This period falls under the implementation of the 14th Five-Year Program of 2021-2025, which emphasizes targeted support measures for vulnerable groups, including low-income rural residents and migrants.

The legal and regulatory framework of this period evolved from the strategies of «targeted poverty alleviation» to comprehensive mechanisms combining economic growth, digital technologies, and ecological sustainability.

After 2020, the focus of policy shifted from the elimination of absolute poverty to the prevention of its return and integration with rural revitalization. The central document – «Outline of the 14th Five-Year Plan for National Economic and Social Development of the People’s Republic of China and the Vision for 2035», adopted on March 22, 2021, but actively implemented in 2022–2025, established a four-sided mechanism: responsibility, policy, resources, and monitoring, with the goal of ensuring income growth of farmers in former poor areas by 2025. This made it possible to prevent a mass return to poverty, keeping the level below 1% according to national standards.

In 2023, investments in cooperatives created 20 million jobs, increasing farmers’ incomes by 25% in Guizhou. In the same year, urbanization reached 66.2%, universally providing jobs for migrants and members of rural families. At the same time, rural revitalization integrated anti-poverty measures, according to which in 2024 ecotourism in Yunnan provided employment for 1 million people, increasing incomes by 20%.

By 2025, according to the Xinhua Institute report, all former poor counties had reached a level of development above the national average, with farmer income growth 2-3% higher than the national level. Furthermore, it provides for dynamic monitoring of 89.62 million households and targeted assistance to prevent a return to poverty.

The fundamental document – «National Action Plan for the Prevention of Disabilities (2021-2025)», adopted on March 13, 2021, but implemented in 2022–2025, according to its norms, by 2025 all former poor counties had already successfully reached a level of development above the national average, with farmer income growth 2-3% higher than the national level. It introduced measures for the diversification of employment, including subsidies for cooperatives and e-commerce, covering 20 million jobs.

The next decree, «Action Plan for the Development of Digital Villages (2022-2025)», issued on March 1, 2022 by the Central Cyberspace Office and nine ministries, integrates digitalization into measures against poverty. It provides for «action to expand online assistance» for former poor regions, including the training of 10 million farmers in digital skills and the creation of e-commerce platforms for 2 million users. By 2025, 98% of poor counties were covered by 5G networks.

Further, the «National Action Plan for the Prevention of Disability (2021–2025)», approved by the State Council on January 5, 2022, provides for subsidies for medical care and rehabilitation for 20 million people, integrating with Dibao. Regional decrees, such as in Shaanxi, successfully adapted the plan for local needs. The «Healthy China 2030» program expanded insurance to 95% of the population, reducing the return due to illness by 5%. The social plan for the prevention of disability for 2021-2025, covering 20 million people with rehabilitation subsidies, reduced vulnerability by 10%.

Another program document, «Opinions on Further Deepening Reform in Agriculture and Accelerating Comprehensive Rural Revitalization», issued on February 24, 2025, focuses on the transition period. Its goals are to increase the incomes of low-income groups by 3% above average, as well as to prevent a mass return to poverty. Measures include subsidies for green agriculture amounting to 50 billion yuan and monitoring of 89.62 million households.

In 2022–2025, regional acts, such as the «Action Scheme for Sustainable Income Growth in Yushan County (2023-2025)», adapt federal standards, providing for income growth of 2-3% above average. Thematic decrees, including «Promoting Common Prosperity» of 2021, implemented in 2022-2025, integrate anti-poverty measures with ecology, providing 100 billion yuan for forest restoration.

We see that the legal and regulatory framework of the PRC in 2022-2025 for poverty eradication evolved from consolidation of results to integration with rural revitalization, with key acts such as the 14th Five-Year Program and the Digital Village Plan, and became very effective. These documents ensured income growth, monitoring, and prevention of a return to poverty, reducing vulnerability by 10-15%.

Thus, the achievements of the PRC in poverty eradication in 2022-2025 include consolidation of results, growth of farmers’ incomes by 2-3% above the national average, digitalization with 98% coverage, and environmental improvement of 19.5%. The transition period ensured sustainability, integrating poverty alleviation measures with rural revitalization. And success was due to political will and investments.

China has made a significant contribution to global poverty reduction, becoming a model for developing countries. The Chinese experience offers a model of sustainable development, but its effectiveness depends on adaptation to new realities such as post-pandemic recovery and the global UN goals.

It demonstrates that the combination of economic resources, technologies, and a targeted approach can radically change social reality, but its long-term success depends on adaptation to new challenges. At the same time, the legal framework, oriented toward targeting and monitoring, can radically reduce poverty, but requires further development to ensure sustainability and equality. The PRC may become an excellent example of effective poverty alleviation for modern and post-war Ukraine.