The term "beautiful economy" refers to an economic model emerging from China's new development philosophy. This model focuses on leveraging ecological resources, cultural heritage and local customs—both tangible and intangible—to drive economic vitality. By harmonizing industrial and capital utilization with these resources, the beautiful economy aims to create sustainable growth that benefits both society and environment. 

The concept of "beautiful economy" was first introduced by President Xi Jinping during his inspection tour in Zhoushan, Zhejiang Province, in May 2015. The beautiful economy initiative is part of a broader strategic vision for sustainable development. Key policies include combating pollution, accelerating the transition to green and low-carbon development, and advancing targets for carbon peaking and carbon neutrality. These efforts have contributed to the high-quality economic and social development seen across China.

According to the Ministry of Ecology and Environment, in 2024, the average density of PM2.5—fine particulate matter associated with health risks—was recorded at 29.3 micrograms per cubic meter in cities at or above the prefecture level. This was a 2.7-percent decrease year on year, positioning China as the global leader in air quality improvement. Furthermore, 90.4 percent of the country's surface water is now classified as having excellent quality. Non-fossil energy sources accounted for 19.7 percent of total energy consumption, while the share of coal dropped to 53.2 percent. Renewable energy capacity made up 56 percent of the total installed capacity for power generation. These statistics reflect huge changes that have considerably improved the ecological environment in China.

Looking back on the progress the country has made in developing the beautiful economy over the past decade, several lessons stand out. One important achievement is the promotion of green transformation within traditional industries, which have long served as the backbone of the economy but are often characterized by high energy consumption and pollution. Through the principles of the beautiful economy, China has fostered the green, intelligent and digital transformation of these sectors, enhancing their sustainability and efficiency.

Additionally, the beautiful economy has nurtured several emerging industries, including new energy, energy conservation and environmental protection, eco-tourism, and the cultural and creative sectors. These industries, marked by high added value, low pollution and strong sustainability, are poised to become fundamental growth drivers for future economic growth.

For instance, the rapid expansion of the new-energy vehicle industry has not only reduced the country's dependence on conventional fuels, but also spurred advancements in related industries, including battery technology and autonomous driving. 

The beautiful economy has blurred the lines between primary, secondary and tertiary industries, fostering innovative combinations that create new business models. For instance, the integration of agriculture with tourism and cultural industries has led to the emergence of leisure agriculture, while the fusion of manufacturing and tourism has resulted in industrial tourism.

The development of the beautiful economy is expected to generate more job opportunities, improve public services and enhance the overall quality of life for residents. By promoting rural tourism and eco-agriculture, the beautiful economy can help raise rural residents' incomes and improve rural infrastructure, thereby narrowing the gap between urban and rural areas.

Despite its promising prospects, this economic model also faces challenges, particularly in balancing resource utilization with environmental protection. In some regions, there is an excessive reliance on natural resources, such as tourism and agriculture, leading to instances of overexploitation.

As China continues its industrialization and urbanization, fossil fuels remain the predominant source of energy in the country's energy mix. Consequently, the development of the beautiful economy must strike a balance between resource utilization and ecological conservation. If these problems can be effectively addressed, the beautiful economy is likely to experience more robust and rapid growth.

Copyedited by Elsbeth van Paridon 

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