The proposition of the concept Chinese People’s Economy constitutes a theoretical response to the evolution of the principal societal contradiction in China and the requirements of the high-quality development stage. It aims to promote a profound shift in economic theory from a material-centric orientation to a people-oriented orientation. By constructing an analytical framework encompassing theoretical evolution, accounting revolution, and practical pathways, this study systematically elucidates the three essential characteristics of the Chinese People’s Economy: Regarding developmental objectives, it achieves a shift in values from wealth accumulation to well-being enhancement; Regarding developmental drivers, it accomplishes an adjustment in production relations from factor-driven to innovation-driven growth; Regarding policy focus, it realizes a transformation of state functions from passive distribution to active empowerment. The research further reveals that the paradigm shift in the accounting system from Gross Domestic Product (GDP) to Gross National Income (GNI) carries profound political economy implications. It marks a revolutionary change in accounting philosophy—from emphasizing territory-based measurement of production scale to focusing on people-based measurement of actual national income—making GNI a more suitable metric aligned with the people-centered principle. On a practical level, the study proposes the necessity of properly handling four pairs of major relationships: between the government and the market, between efficiency and equity, between self-reliance and openness, and between immediate and long-term considerations. It suggests building a supporting system through pathways such as ecologically-minded bringing in, leapfrogging going global, deep-level promoting circulation, and strategic investing in people. This provides a theoretical perspective for understanding the new paradigm of China’s economic development and offers academic support for solidly advancing the goals of common prosperity and Chinese modernization.