Under Xi Jinping, China has undergone a fundamental shift that most Western observers still underestimate. The reform-era bargain that Deng Xiaoping struck - elevate economic growth as the central objective while keeping a low profile internationally - has been replaced by a system where national security governs every aspect of policy.
The shift did not happen overnight. Analysts Patrick Cronin and Pinshan Lai trace its origins in a new assessment for The Diplomat, "Hvylya" reports. Xi began centralizing security authority early in his tenure. The "China Dream" of national rejuvenation, announced in 2012, tied regime survival to long-term geopolitical restoration by 2049. A year later, Xi created the Central National Security Commission. In 2014 came the "Overall National Security Concept" - a holistic view spanning political, military, economic, technological, cyber, space, deep-sea, polar, and biological domains.
The key word is "overall." Security is no longer one department's concern - it encompasses the full spectrum of state activity. Industrial policy became national security policy. Programs like Made in China 2025 were absorbed into this broader architecture, linking advanced manufacturing and supply-chain control directly to regime resilience.
China's Five-Year Plans trace this trajectory clearly. The 13th Plan (2016-2020) accelerated indigenous innovation in semiconductors, aerospace, and quantum communications. The 14th Plan (2021-2025) formalized "dual circulation," making domestic resilience the anchor while selectively leveraging global markets. The 15th Plan, approved in March 2026, consolidates the approach further: reform now means resilience-building, not liberalization.
Deng's dictum to "hide your strength, bide your time" served China well for decades. Xi has discarded it. In his calculus, economic modernization has not been abandoned - but it has been subordinated to a comprehensive national security strategy that fuses military modernization, technological ambition, and regime control into a single system.
"Hvylya" previously explored why China's elite believe their window to dominance is closing.