OVER the past four decades, China has transformed itself from a largely agrarian economy into the world’s second-largest economy, thanks in no small part to its unparalleled investment in infrastructure. High-speed rail networks, sprawling highways, world-class airports, and smart cities are just a few hallmarks of China's rapid development.
What makes China's infrastructure story remarkable is the symbiotic relationship between the state and private sector, which together created an enabling environment for long-term planning, financing, and execution of major infrastructure projects. As Zimbabwe looks to revamp its own aging infrastructure, the Chinese experience offers valuable lessons on how coordinated state policy and private sector participation can drive national development.
From the outset of its reform era in 1978, China recognised infrastructure as a core pillar of economic modernisation. Unlike many developing nations that treat infrastructure as a series of isolated projects, China approached it as part of a long term national development strategy. Central to this planning was the formulation of five-year plans, which provided detailed blueprints for infrastructural priorities, financing models, and target outcomes. These plans were coordinated across various levels of government, ensuring alignment between national goals and provincial implementation. Key institutions like the National Development and Reform
Commission (NDRC) played a pivotal role in coordinating infrastructure investments, while state-owned banks like the China Development Bank (CDB) provided concessional loans for mega-projects.
While the state has traditionally played a dominant role in infrastructure planning and financing, the private sector has increasingly become a crucial contributor. Over the past two decades, China has embraced a hybrid model where public-private collaboration drives infrastructure expansion across transport, energy, telecommunications, and urban development. The rise of private sector involvement in China’s infrastructure was facilitated by key policy reforms, particularly following the country’s accession to the World Trade Organization in 2001. Recognising the limitations of state-led financing in meeting growing urbanisation and industrialisation needs, the Chinese government gradually opened infrastructure markets to domestic and foreign private capital.
The introduction of public private partnerships under frameworks such as the Opinions on Strengthening the Management of PPP Projects (2014) laid the groundwork for structured participation.
Institutions like the National Development and Reform Commission (NDRC) and the Ministry ofFinance (MoF) established clear regulatory environments to attract private investment.
PPP pilot projects were promoted in sectors such as railways, wastewater treatment, and urban infrastructure, with risk-sharing mechanisms designed to appeal to investors.
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Sectoral contributions of these institutional reforms were remarkable. In the energy sector, the private sector has been instrumental in diversifying China’s energy mix.
Private firms have invested heavily in renewable energy, including wind, solar, and battery storage. This complements state efforts to reduce reliance on coal and promote green development.
The renewable energy boom in China is one of the largest globally, with private enterprises accounting for a significant portion of solar photovoltaic capacity expansion.
In logistics and transportation, private firms have contributed to building and operating highways, ports, and airports throughconcession agreements and joint ventures.
The Beijing Capital International Airport and several high-speed railway segments have benefited from private participation in financing and management.
The provision of physical infrastructure has had a significant impact on the socio economic landscape in China. Infrastructure development has directly contributed to increased productivity across multiple sectors.
The creation of efficient logistics and transport systems—including over 40,000 kilometres of high-speed rail, world-class highways, and advanced port facilities—has significantly reduced the cost and time of moving goods and people.
This has allowed China to become a global manufacturing hub, enabling the smooth flow of inputs and finished products both domestically and internationally.
The reliable supply of energy through large-scale hydroelectric projects, coal-fired plants, and growing renewable energy capacity has ensured a consistent power supply for industries. This infrastructure has supported the development of industrial clusters and special economic zones, catalysing economies of scale and foreign direct investment.
China’s infrastructure planning has deliberately targeted regional disparities, helping to integrate lagging inland provinces with coastal economic powerhouses.
Initiatives such as the Western Development Strategy and the Belt and Road Initiative (BRI) aim to connect underdeveloped regions with domestic and global markets. Urban infrastructure—including housing, water systems, and metro rail networks—has facilitated large-scale urbanisation. Over 60% of China's population now lives in urban areas, up from just 20% in 1980. This urban shift has created new consumption patterns, expanded the labour force in cities, and fuelled growth in real estate and services sectors.
Infrastructure improvements have enhanced China’s export competitiveness. World class ports like Shanghai, Shenzhen, and Ningbo handle vast volumes of container traffic efficiently, linking China’s manufacturers to global markets.
The strategic positioning of these ports, along with advanced logistics and customs systems, has supported China’s dominance in global trade.
Moreover, initiatives like the BRI have improved international connectivity through railways, roads, and maritime routes, expanding China’s trade footprint in Asia, Africa, and Europe.
This has solidified its position in global supply chains while opening new markets for Chinese goods and services.
Infrastructure projects have produced notable spillovers. Construction activities, especially in transport and energy sectors, have created millions of jobs, directly employing both skilled and unskilled labour. The multiplier effect has supported auxiliary industries such as cement, steel, and engineering services. Crucially, infrastructure-led development has contributed to lifting over 800 million people out of poverty.
Improved access to roads, electricity, and water has enhanced rural livelihoods, expanded access to education and healthcare, and opened new opportunities for entrepreneurship and mobility. Zimbabwe among the many developing countries facing chronic infrastructure deficits, can draw valuable lessons from China’s planning, execution, and integration strategies. The following insights may be drawn:
- a) Long-term vision and central co-ordination
One of China's most significant strengths has been its ability to formulate and implement long-term infrastructure master plans aligned with national development goals. Through five-year plans and state-led development blueprints, China ensured coherence across transport, energy, urban development, and industrialisation.
Developing countries can benefit from adopting integrated planning frameworks that prioritise infrastructure as a catalyst for broader economic transformation.
- b) Prioritisation and Sequencing
Rather than pursuing all projects simultaneously, China strategically prioritised infrastructure with the highest economic multipliers—such as highways, ports, and duplication. Developing countries often stretch resources thin across too many projects. Learning to prioritise can enhance both impact and sustainability.
- c) Public-private synergy
While the Chinese state played a dominant role, the private sector was encouraged to participate through public-private partnerships, especially in construction and technology innovation.
By creating a stable investment environment, offering capital.
This model offers insights for countries seeking to expand PPPs but struggling with investor confidence.
- d) Linking infrastructure to industrial and trade policy
China’s infrastructure was never developed in isolation—it was designed to support export-led growth, industrial clusters, and urban expansion. For developing countries, integrating infrastructure planning with industrial and trade policy can maximise the economic returns on public investment.
Ultimately, China's model underscores the importance of vision, state capacity, private sector dynamism and policy alignment in driving infrastructure-led growth.
With these ingredients, Zimbabwe possesses the potential to emerge as a leading modern economic powerhouse in the region.
*Justice Mundonde is a post-doctoral research fellow at the University of South Africa's Department of Finance
Risk Management and Banking. He can be contacted on justice.mundonde@gmail.com.
