This year marks the final year of the 14th Five-Year Plan (2021-2025), which puts a heavy emphasis on the development of new quality productive forces. First introduced in 2023, the term refers to advanced productivity freed from the traditional economic growth mode and productivity development paths. It features high-tech, high efficiency, and high quality, demonstrated by areas such as artificial intelligence, big data, and new materials.
Rising R&D Fuels Innovation
The Chinese mainland solidified its position as a global innovation leader last year, with its Global Innovation Index ranking rising to 11th place. This marks one of the fastest improvements among major economies over the past decade.
The achievement comes amid sustained investments in research and development (R&D), with R&D expenditure reaching 2.68 percent of its GDP in 2024 – up 0.1 percentage points year on year – and basic research funding surging by 10.5 percent, now accounting for 6.91 percent of the total R&D spending, according to the National Bureau of Statistics (NBS).
The Chinese mainland's total spending on R&D surpassed 3.6 trillion yuan (approximately $500 billion) last year, marking an 8.3-percent increase compared to the previous year, according to the NBS.
\"Favorable policies, a diversified investment environment, and stronger involvement from businesses have significantly contributed to the consistent growth in R&D spending,\" noted Zhang Qilong, an NBS statistician.
At 2.68 percent, the Chinese mainland's R&D intensity ranks 12th among major countries, surpassing the European Union's average of 2.11 percent and nearing the Organisation for Economic Co-operation and Development's figure of 2.73 percent.
New and Old Industries Embrace Technology
The Chinese mainland's industrial landscape is undergoing a transformative shift as emerging sectors rapidly expand. According to Kang Yi, commissioner of the NBS, the value-added output in high-tech manufacturing above designated size grew by 8.9 percent year on year in 2024.
Notably, the aerospace equipment and electronic communication device manufacturing sectors posted double-digit growth, while smart consumer equipment manufacturing surged by 10.9 percent. This growth was driven by soaring demand for intelligent car-mounted devices (up 25.1 percent) and unmanned aerial vehicles (up 53.5 percent).
\"New market demands are accelerating the supply of high-quality products, reshaping the Chinese mainland's industrial pillars,\" Kang emphasized.
Legacy industries also saw robust modernization efforts in 2024. Technical transformation investments in manufacturing rose by 8 percent, outpacing overall investment growth. Meanwhile, the digital economy continued its rapid ascent. The value-added output in digital product manufacturing exceeded industrial averages, and the information transmission, software, and IT service sector expanded by 10.9 percent.
Digital consumption innovations further spurred online retail sales of physical goods, which climbed by 6.5 percent. Infrastructure for next-gen connectivity advanced steadily. By November 2024, the Chinese mainland had deployed 4.19 million 5G base stations. It also launched its first 400G all-optical interprovincial backbone network under the \"East Data West Computing\" project, establishing ultra-high-speed computing channels.
Reference(s):
cgtn.com
