As China gears up for the 2024 Two Sessions political meeting, a new economic directive is taking center stage: \"new productive forces.\" This shift marks a strategic pivot from quantity-driven growth to a model that prioritizes quality and sustainability.
\"Developing new productive forces is an intrinsic requirement and an important focus of promoting high-quality development,\" explained President Xi Jinping. He emphasized that innovation is the key driver, enabling advanced productivity through high technology, efficiency, and quality. This aligns seamlessly with China's evolving development philosophy aimed at achieving the \"great rejuvenation of the Chinese nation.\"
The impact of this shift is already evident. In 2022, strategic emerging industries such as new energy, high-end equipment, and biotechnology accounted for over 13 percent of China's GDP, up from 7.6 percent in 2014. The target is to exceed 17 percent by 2025, signaling a transformative change in the economic landscape.
Implementing these new productive forces requires continuous breakthroughs in science and technology. This includes the introduction of disruptive technologies, the growth of emerging industries, the enhancement of industrial chains, and the acceleration of the green transition, all powered by intelligent information systems.
Equally crucial is the deepening of economic reforms. Modernizing science and technology management and removing existing bottlenecks are essential steps to facilitate this transition.
A robust private sector is vital for accelerating new productive forces. Although recent years have posed challenges due to the pandemic, regulatory changes, and a complex external environment, the Chinese government is addressing these issues. The National People’s Congress, the Ministry of Justice, and the National Development and Reform Commission are collaborating on a new law to promote the private sector. This legislation aims to ensure that private enterprises have equal access to financing, resources, and government contracts, leveling the playing field with state-owned companies.
Despite these initiatives, China faces several challenges, including lingering public uncertainty post-Covid, substantial local debt, a volatile stock market, youth unemployment, a shrinking and aging population, and ongoing international tensions.
As the world watches, China is poised to unveil a comprehensive plan addressing these challenges and steering the nation towards sustained, high-quality economic development.
Reference(s):
cgtn.com
