The Evolution and Transformation of Chinas Economic Model: A Pathway Analysis Since the Reform and Opening-Up

Amid ongoing shifts in the global economic landscape and rising geopolitical uncertainties, China is critically transitioning from a latecomer advantage-based catch-up model to a path of independent transformation. This paper explores the coexistence of Evolution and Transformation as dual development modes, using the new energy vehicle (NEV) and semiconductor industries as case studies. These two sectors represent contrasting trajectories in Chinas industrial strategy: the NEV industry demonstrates a hybrid modelcombining global integration with increasing technological autonomywhile the semiconductor industry faces structural constraints due to external technological blockades and high-end import dependence. This divergence exemplifies the tension between path-dependent evolution and disruptive transformation. The study identifies several barriers to industrial upgrading, including global technology restrictions, limited policy coordination, and structural imbalances across sectors. The paper recommends enhancing indigenous innovation through targeted policy support, improving inter-agency coordination, and fostering strategic self-reliance in critical sectors while preserving engagement in global cooperation. This research contributes to a deeper understanding of Chinas evolving modernization strategy. It offers theoretical insights into how other developing economies might navigate similar challenges in balancing global integration with domestic resilience.