China is rewriting its economic story, shifting from high-speed expansion to high-quality development powered by technology. Policymakers have emphasized that cutting-edge innovation—from AI to green manufacturing—will fuel new industries, business models, and productivity gains.
In 2024, China climbed to 11th place in the Global Innovation Index and ranked second worldwide in total R&D expenditure. With over 460,000 high-tech enterprises and 26 science and technology clusters in the global top 100, the stage is set for breakthroughs that matter to global citizens, entrepreneurs, and sustainability advocates.
Quality is front and center: high-tech and green manufacturing are scaling up. In July, value added in large high-tech manufacturers rose 9.3% year-on-year. Specialty sectors saw integrated circuits surge by 26.9% and electronic materials by 21.7%. Meanwhile, production of new energy vehicles jumped 17.1%, lithium-ion batteries 29.4%, and wind turbines 19.3%.
Digital transformation is also accelerating. Digital product manufacturers grew 8.4% in July, outpacing overall industrial growth. Intelligent equipment climbed 13.4%, and electronic components 11%. AI applications are boosting sectors: smart drones and in-vehicle devices soared 80.8% and 21%, while industrial and service robots expanded by 24% and 12.8%.
Challenges remain. Basic research spending accounts for just 6.9% of China's R&D, below the 16–18% seen in other leading economies. The conversion of research into real-world solutions stands at 30%, versus over 50% in many developed markets. Supply-demand mismatches and shrinking industrial profits—down 1.8% in the first half—highlight the need to balance innovation with market pull.
As China tackles these hurdles, its journey offers lessons for global audiences: prioritizing foundational science, streamlining tech-to-market pathways, and nurturing green, digital, and AI-driven sectors that can shape a sustainable future worldwide.
Reference(s):
Technological innovation catalyzes new drivers of development in China
cgtn.com
