Over the past four decades, global poverty has reduced significantly and one country has played a central role: China. Through quick economic growth, large scale development programs and targeted policy interventions, China has not only lifted hundreds of its own citizens out of poverty but also contributed meaningfully to poverty reduction worldwide. China’s achievement of eliminating extreme poverty by 2020 valuably met the United Nations’ 2030 ‘No Poverty’ target a decade early, signifying an historic milestone.

Domestic Poverty Reduction Success in China

China’s poverty reduction is generally regarded as the largest in human history. According to the World Bank, the country lifted more than 800 million people out of poverty over several decades, largely driven by economic growth and structural reforms. From 1978 to 2020, China reduced its rural poverty rate from 97.5% to nearly zero, successfully declaring the eradication of extreme nationwide rural poverty.

This success had several key strategies:

• Targeted poverty alleviation, which identified and supported specific households.
• Investment in healthcare and education, improving long-term living standards
• Infrastructure development, mainly in rural areas.

By 2020, China had completed a major national campaign to lift tens of millions out of poverty within only five years.

Meeting the UN 2030 Target Early

The U.N.’s first Sustainable Development Goal aims to end extreme poverty globally by 2030. China reached this benchmark around 2020, making it the first country to do so at such a scale.

U.N. officials have applauded China’s progress, noting that it demonstrates the ‘No Poverty’ goal is achievable, even in a country with a population exceeding 1 billion.

Because China accounted for a large population of the world’s poor population in earlier decades, its success crucially accelerated global poverty reduction overall.

China’s Contribution to Global Poverty Reduction

Beyond its domestic achievements, China has increasingly contributed to global poverty reduction. Through trade, investment and infrastructure development, China has supported growth in many developing economies.

The Belt and Road Initiative (BRI) has been a notably successful example of China’s global poverty reduction. The BRI is a massive global infrastructure development strategy led by China aiming to connect other regions to China to enhance regional trade and economic integration. Research shows that Chinese-funded projects have helped reduce global poverty by creating jobs, improving connectivity and lowering trade costs. A 2023 study found that the BRI investments are associated with measurable declines in poverty levels in participating countries, especially lower income regions.

Similarly, cross-country analysis reveals that countries that are a part of the BRI tend to experience long-term reductions in poverty, largely due to infrastructure improvements and increased economic activity.

In locations such as Africa, Chinese investment in transport and energy has supported broader economic growth by improving access to markets and enabling industrial growth. While the impact varies depending on local conditions, evidence suggests that China’s growing role in global development has become a principal contributor to poverty reduction in many developing economies.

Other initiatives, such as infrastructure investment in South-South cooperation, have helped improve industrial capacity and employment opportunities in partner countries. China has also provided financial assistance and debt relief measures for developing nations during times of crisis.

Regions That Have Benefited Most

Sub-Saharan Africa has remained home to a large share of the world’s poor, and China has become a significant development partner in the region. According to the World Economic Forum, “China has become sub-Saharan Africa’s largest bilateral trading partner.”

Countries in Southeast Asia have benefited from increased trade and manufacturing investment linked to China’s economic expansion.

Chinese investments in Latin America’s natural resources have expanded its economic opportunities and strengthened trade ties across the region.

Lessons for Other Countries

China’s experience offers important lessons for global poverty reduction to countries striving to meet the U.N.’s goals:

• Targeted interventions are effective: identifying and assisting specific poverty-stricken populations ensures resources reach those most in need.
• Economic growth is important: this enables large-scale poverty reduction.
• Infrastructure development creates opportunity.
• Continuous commitment and long-term planning lead to successful global poverty reduction.

China’s success in eliminating extreme poverty ahead of the UN’s 2030 target proves a landmark achievement. By combining strong economic growth with targeted policies, it has transformed the lives of millions and reshaped global poverty trends.

– Leah Denning

Leah is based in Bristol, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Flickr