China is undergoing a significant economic transformation, shifting from traditional growth drivers to what President Xi Jinping has termed \"new quality productive forces.\" This concept emphasizes high technology, high efficiency, and high quality, aligning with the nation’s new development philosophy.
Historically, China's economy relied heavily on infrastructure investments, real estate, and exports. However, these drivers are now diminishing as the country pivots towards innovation and technology. Zhu Min, Vice Chairman of the China Center for International Economic Exchanges, highlighted this shift, noting the decline of the previous key economic drivers.
Experts like Martin Jacques from Cambridge University observe that China is transitioning from high-speed growth to high-quality growth, focusing on green and carbon-free initiatives and integrating the real economy with the digital sector. This strategic pivot is supported by China's impressive rise in the Global Innovation Index, jumping from 34th place in 2012 to 12th in 2023. Additionally, China's R&D investments have tripled over the past decade, positioning it as the second-highest spender in the world.
In the electric vehicle market, China leads globally, accounting for nearly 60% of global sales. Companies like BYD have surpassed Tesla, showcasing China's competitive edge in high-tech industries. Innovations at Yangshan Port, where 5G technology enables remote-controlled operations, exemplify the integration of smart technology and artificial intelligence across the industrial chain.
However, this transformation is not without challenges. Andy Mok, senior research fellow at the Center for China and Globalization, points out the need for a highly skilled workforce to support and maintain advanced technologies. The pace of this shift raises concerns about whether the workforce can adapt quickly enough without being left behind.
This global trend towards tech-driven transformation is mirrored in other countries, with significant portions of the workforce in the United States and Europe expressing concerns about job displacement due to automation and AI. As China navigates this transition, the upcoming Two Sessions will be crucial in shaping policies that balance growth with societal adaptation.
China’s long-term planning and strategic focus on innovation position it well to achieve high-quality development. Observers will be watching closely to see how effectively China can leverage its new quality productive forces to sustain economic growth and drive global innovation.
Reference(s):
cgtn.com
