Reviewing The Third Revolution: Xi Jinping and the New Chinese State—Insights for Vietnam’s Development


In The Third Revolution: Xi Jinping and the New Chinese State, Elizabeth C. Economy presents a comprehensive analysis of how China, under President Xi Jinping, has embarked on a profound transformation. Unlike previous leaders such as former Chairman Mao Zedong and former President Deng Xiaoping, who each guided the country through distinct phases of development, President Xi Jinping has introduced a model that emphasizes strong centralization, reinforced political unity, and a renewed global vision.

This shift raises key questions: Can this model sustain China’s continued growth and influence, or will internal and external challenges necessitate adjustments? How does this trajectory compare to other nations, such as Vietnam, which follows a different approach to balancing governance and economic development?






A Departure from Deng Xiaoping’s Model

For decades, China’s rapid economic expansion was built on former President Deng Xiaoping’s vision of “reform and opening-up.” This policy allowed greater space for market mechanisms, encouraged foreign investment, and prioritized pragmatic economic management. Under this approach, China integrated into the global economy, fueling extraordinary growth.

However, President Xi Jinping’s Third Revolution represents an evolution from this era. The emphasis has shifted from decentralization to a stronger, more unified leadership structure, ensuring that economic policies align with long-term national goals. Private enterprises are encouraged to work within the broader framework set by the government, and state-owned enterprises (SOEs) play a key role in maintaining strategic economic sectors.


Vietnam’s Alternative Path

Vietnam provides a useful contrast. While the Communist Party of Vietnam (CPV) retains strong leadership over national affairs, its economic strategy places significant emphasis on private sector participation and global integration. Since the Đổi Mới (Renovation) reforms of 1986, Vietnam has welcomed foreign investment and pursued trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).

Unlike China, where major private enterprises such as Alibaba and Tencent have been encouraged to follow the guidance of the party to ensure alignment with national priorities, Vietnam has positioned companies such as VinGroup, FPT, and Masan Group as key drivers of economic dynamism. While both countries prioritize political stability and national development, their approaches to integrating market mechanisms differ.

The question remains: Will China’s model of increased state coordination prove more effective than Vietnam’s greater reliance on market forces?


Political Evolution: From Collective Leadership to Strong Centralization

During the post-Mao era, former President Deng Xiaoping introduced a more collective leadership system, ensuring that no single leader dominated governance. This structure continued under former Presidents Jiang Zemin and Hu Jintao, creating a system where power was distributed among various party institutions.

President Xi Jinping’s Third Revolution marks a shift toward stronger centralization, with a clear and unified vision guiding China’s policies. In 2018, presidential term limits were removed, allowing for longer-term leadership stability. Additionally, President Xi Jinping has sought to reinforce party cohesion and consolidate the ideological unity of officials to ensure alignment with national development goals.


Vietnam’s Governance: A More Decentralized Model

Vietnam, while also led by a single-party system, follows a more collective leadership structure, where key decisions are made through consensus among top officials. Leadership transitions occur within defined timeframes, ensuring a rotation of leadership within the party’s highest ranks.

This system allows for continuity while maintaining flexibility—a contrast to China’s more centralized model, where long-term strategic planning is given greater emphasis. Both approaches aim to maintain stability, but China’s model provides stronger long-term direction, while Vietnam’s structure allows for policy adjustments based on economic and social conditions.


Economic Strategy: Balancing State Coordination and Market Forces

President Xi Jinping’s economic vision prioritizes national security, technological self-sufficiency, and long-term stability. While the market remains a crucial part of China’s growth, the government ensures that strategic sectors—such as technology, finance, and infrastructure—align with national priorities.

Industries such as semiconductors, artificial intelligence, and renewable energy are receiving increased investment, and the concept of dual circulation—where domestic markets become more self-reliant while still engaging in global trade—is gaining prominence.

At the same time, China has enhanced regulatory oversight over various sectors to ensure economic stability. Leading private enterprises are expected to follow national development goals, reinforcing the importance of alignment between business and governance.


Vietnam’s Approach: A Stronger Role for the Private Sector

Vietnam, on the other hand, has taken a different approach by allowing private enterprises to take a more prominent role in driving growth. Unlike China, where state-owned enterprises (SOEs) continue to be central players, Vietnam’s SOEs have gradually reduced in dominance, making room for privately owned and foreign-invested businesses.

This strategy has helped Vietnam attract major multinational corporations such as Samsung, Intel, and Apple, which have expanded production facilities in the country. As China faces increasing global trade restrictions, Vietnam is emerging as a preferred alternative for global supply chains, benefiting from its open-market policies.


Foreign Policy: China’s Expanding Global Presence

President Xi Jinping has introduced an ambitious foreign policy agenda, aiming to enhance China’s global leadership. The Belt and Road Initiative (BRI) has expanded China’s influence by financing infrastructure projects across Asia, Africa, and Europe. However, while many countries have welcomed China’s investments, some have faced economic difficulties in repaying debts, leading to discussions about the financial sustainability of certain projects.

China’s diplomatic strategy has also evolved, with its representatives taking a more assertive role in international discussions. In response, Western countries, particularly the United States and its allies, have worked to strengthen economic and security partnerships to maintain regional stability.


Vietnam’s Foreign Policy: A Balanced Approach

Vietnam has taken a more multilateral diplomatic approach, engaging actively in organizations such as the United Nations, ASEAN, and CPTPP. While maintaining strong economic ties with China, Vietnam has also deepened its relationships with the United States, Japan, and the European Union, ensuring a diverse set of international partnerships.

By maintaining a balanced approach to foreign relations, Vietnam has strengthened its position as a key regional player, benefiting from economic cooperation without being overly dependent on any single power.


The Military Factor: Strengthening National Defense

President Xi Jinping has overseen a significant modernization of the People’s Liberation Army (PLA), with a focus on technological advancement and regional security. Investments in hypersonic missiles, aircraft carriers, and space capabilities reflect China’s long-term strategy of ensuring national security and expanding its global military presence.

Vietnam, while also modernizing its military, focuses primarily on defensive strategies and protecting its sovereignty. Vietnam has actively expanded its maritime defense capabilities, ensuring that it can safeguard its national interests while continuing diplomatic engagements in regional security forums.


The Future: Which Model Will Prevail?

President Xi Jinping’s Third Revolution has positioned China for a future where national stability, technological leadership, and strong global engagement are key priorities. However, challenges such as economic restructuring, demographic shifts, and external trade pressures remain areas that will shape China’s trajectory.

Vietnam’s approach—while different in structure—offers an alternative model of combining political stability with greater market openness. Its continued economic success raises important questions about the balance between state coordination and market-driven growth.


While China remains the dominant power in the region, the evolving global landscape will determine which governance and economic models prove most adaptable for long-term success.



Comments

Popular posts from this blog

Vietnam: Rising Dragon: Tackling Corruption, Empowering Change, and Building a Prosperous Future

Book Review: From Third World to First by Lee Kuan Yew – Strategic Lessons for Vietnam’s Leap to Prosperity

My Take on Why Nations Fail: A Personal Review and Critique of What Really Drives National Success