As China gears up for the 2025 Two Sessions, the nation is set to revolutionize its economic landscape through the introduction of "new quality productive forces." This initiative, unveiled by Premier Xi Jinping during his September 2023 visit to northeast China, marks a significant shift from traditional growth models to a future driven by high-tech and high-efficiency production.
The concept emphasizes the importance of technological advancements in fostering economic transformation. By prioritizing disruptive innovation, enhancing total factor productivity (TFP), and cultivating emerging industries, China aims to create a more resilient and dynamic industrial base.
Central to this strategy is the digital transformation of manufacturing. Investments in industrial automation, smart logistics, and advanced digital systems are expected to boost TFP across various sectors. The government's recent work report highlights key industries such as commercial aerospace, biomanufacturing, quantum technology, and 6G as focal points for development.
Artificial Intelligence (AI) is poised to play a pivotal role in this transformation. China's AI expenditures are projected to reach $38 billion by 2027, capturing nearly 9% of the global market. In manufacturing, AI-powered predictive maintenance and automated quality control systems are set to enhance production efficiency by up to 50% in industries like automotive and electronics. Leading companies such as Huawei and SenseTime are at the forefront of this AI revolution, driving the shift towards a smarter and more automated industrial sector.
By fostering these new quality productive forces, China is not only reshaping its economic future but also asserting its position as a global leader in innovation and technology. This forward-looking approach is expected to have far-reaching implications, influencing global markets and international collaborations in the years to come.
Reference(s):
China taking 'new quality productive forces' to a higher level
cgtn.com
