China is embarking on a transformative journey to reshape its economy by embracing innovation and technology. The concept of “new quality productive forces,” introduced by President Xi Jinping, is at the heart of this shift towards high-quality growth.
During a research trip to Northeast China, President Xi emphasized the need for advanced productivity that is freed from traditional economic growth models. This new approach focuses on high technology, high efficiency, and high quality, aligning with the country’s new development philosophy.
The traditional drivers of China’s economic growth—infrastructure investment, real estate, and exports—have lost momentum. Zhu Min, Vice Chairman of the China Center for International Economic Exchanges, noted that these sectors are no longer the primary engines of growth.
China is now prioritizing innovation-led development. Martin Jacques, a former senior fellow at the University of Cambridge, observed that China is moving towards high-quality, green growth by integrating the real economy with the digital economy.
China’s commitment to innovation is evident in its rise in the Global Innovation Index, from ranking 34th in 2012 to 12th in 2023. The country has tripled its research and development expenditure over the past decade, reaching 3.09 trillion yuan (approximately $480 billion) in 2022, making it the second-highest spender on R&D globally.
The success of Chinese companies like BYD in the electric vehicle market showcases the nation’s progress. BYD has surpassed Tesla as the leading seller of electric vehicles, contributing to China accounting for nearly 60% of global EV sales.
Technological advancements are transforming industries across China. At Yangshan Port, 5G technology enables remote-controlled bridge cranes, increasing efficiency and reducing personnel needs by 70% compared to traditional terminals.
“Smart manufacturing is transforming the production landscape,” said Andy Mok, senior research fellow at the Center for China and Globalization. “Industries from consumer goods to heavy manufacturing are benefiting from integrating advanced technologies.”
Despite these advancements, challenges remain. The transition to high-tech industries requires a highly skilled workforce. “You need new sorts of people that are very highly skilled at working with these machines,” Mok added. This necessitates education and retraining efforts.
This challenge is not unique to China. Automation and technological advancements are affecting workforces globally. In the United States, activities that account for up to 30% of current work hours could be automated by 2030, according to a report by McKinsey & Company.
China’s approach to addressing these challenges involves long-term planning and strategic policymaking, particularly during significant events like the Two Sessions. Balancing growth with societal adaptability will be crucial as the country pursues high-quality development.
Reference(s):
cgtn.com
