The 2023 Central Economic Work Conference (CEWC), held in Beijing from December 11 to 12, has set the stage for China’s economic strategy in the coming year. Building on a robust performance with a real GDP growth rate of 5.2 percent in the first three quarters, China is on track to meet its 5 percent growth target outlined in the Government Work Report.
Despite various challenges, the past decade has seen China maintain consistent productivity growth, with total factor productivity (TFP) steady at around 2 percent. This stability underscores the country’s commitment to long-term economic progression and reinforces confidence in sustained growth.
At the heart of the CEWC’s agenda is the focus on innovation-driven development. The conference emphasized the transition from an investment-driven growth model to one that prioritizes innovation, particularly within the manufacturing sector. Research indicates that increasing the proportion of manufacturing firms investing in research and development from 12.2 percent to 20 percent could boost the aggregate TFP growth rate by 0.86 percentage points.
Moreover, the CEWC highlighted the importance of innovation in the services sector, including producer and consumer services. Producer services, which provide essential inputs to the industrial sector, have shown higher TFP growth compared to manufacturing. On the consumer side, areas such as cultural tourism and sports events are being targeted as new engines of growth, enhancing consumers’ access to goods and services while fostering sustainable development.
Overall, the CEWC’s strategic focus on stability and high-quality development through innovation aims to ensure that China continues to grow sustainably and effectively in the global economy.
Reference(s):
CEWC: Ensuring stability and prioritizing high-quality development
cgtn.com
