General Secretary of the CPC Central Committee Xi Jinping introduced the concept of \"new quality productive forces\" during his visit to northeast China in September 2023. This term, which gained significant attention during the \"Two Sessions,\" represents China's strategic blueprint for transforming its production capabilities across agriculture, industry, and modern technology.
The initiative is not merely a political slogan but a well-planned transformation aimed at modernizing production forces. This involves embracing green growth, constructing an ecological civilization, and enhancing the overall quality of production. The Chinese leadership has been laying the groundwork for years, introducing policies like the \"new development philosophy\" and \"high-quality development\" to support this comprehensive overhaul.
In the agricultural sector, China has launched numerous programs under initiatives such as Made in China, Rural Revitalization, and the Modern Protected Agriculture Development Plan 2023-2030. These programs underscore the importance of agriculture as the foundation for building a modern socialist country.
Recognizing that research and development (R&D) is crucial for modernization, the Chinese government has significantly increased its investment in R&D. From 2012 to 2022, R&D allocations rose from 1.9% to 2.5% of GDP, with projections indicating a 7% annual increase. In 2022 alone, China allocated $420.9 billion for R&D, marking a 10.1% year-on-year increase.
Chinese companies have also ramped up their R&D investments, surpassing their European counterparts in 2021 with investments of €195.9 billion compared to Europe's €192.8 billion. By 2022, China's global share of R&D reached 17.8%, second only to the United States. This surge in investment is particularly evident in the information and communication technology sector.
Beyond financial investments, China is cultivating high-quality human capital essential for innovation. The country now boasts the largest pool of Science, Technology, Engineering, and Mathematics (STEM) graduates. According to Georgetown University, China surpassed the U.S. in producing STEM Ph.D. graduates in 2007, and by 2025, the number of STEM graduates in China is expected to double that of the U.S.
These concerted efforts are propelling China to the forefront of technological innovation. The nation now leads in 37 of 44 critical technologies, positioning itself as a global hub in areas such as defense, space, robotics, energy, environmental technology, biotechnology, artificial intelligence, advanced materials, and quantum technology. This remarkable progress signifies China's transformation from a technology laggard to a major innovator on the world stage.
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Why China will achieve its 'new quality productive forces' goals
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