Role of high-tech in growth highlighted

China's emphasis on cultivating new quality productive forces through scientific and technological innovation, reiterated by President Xi Jinping, will drive industrial upgrades, give strong impetus to high-quality economic growth and enhance the country's core competitiveness globally amid external uncertainties, said national legislators, political advisers and experts.

Highlighting that fostering new growth drivers is high on China's development agenda, they called for accelerated efforts to achieve breakthroughs in crucial technologies by investing more in fundamental research and strategic forward-looking fields. They also called for reinforcing the dominant position of enterprises in bolstering innovation.

Driving the development of new quality productive forces through sci-tech innovation and modernizing China's industrial system are expected to be in the spotlight when the country's top legislature and top political advisory body meet next week at the annual two sessions.

First put forward by Xi, who is also general secretary of the Communist Party of China Central Committee, during his inspection tour of Heilongjiang province in September 2023, the term "new quality productive forces" was highlighted at the Central Economic Work Conference in December 2023, and became the subject of a group study session held by the Political Bureau of the CPC Central Committee in January 2024.

With innovation playing the leading role, new quality productive forces stand for advanced productivity that is freed from the traditional economic growth mode and productivity development paths, features high-tech, high efficiency and high quality, and is in line with the new development philosophy, Xi said at the study session.

The Central Economic Work Conference held in December 2024 urged efforts to make sci-tech innovation drive the development of new quality productive forces and build a modern industrial system.

"As a new round of technological revolution and industrial transformation is evolving, promoting the deeper integration of digital technologies with the real economy is a necessary requirement for establishing a modern industrial system and an important engine accelerating the development of new quality productive forces," said Qu Yongyi, Party secretary of the Chinese Academy of Social Sciences' Institute of Industrial Economics.

Qu, who is also a member of the 14th National Committee of the Chinese People's Political Consultative Conference, stressed the cultivation of strategic emerging industries and future-oriented industries as they play a pivotal role in propelling the development of new quality productive forces. These industries mainly include new-generation information technology, artificial intelligence, new energy, new materials, high-end equipment manufacturing, biomedicine and quantum technology.

Qu said more efforts are needed to increase investment in core technologies in key fields, solve bottleneck issues and boost the nation's self-reliance and strength in science and technology and gain an edge in an increasingly competitive international scenario.

Huang Hanquan, head of the Chinese Academy of Macroeconomic Research, underscored the importance of giving full play to the role of enterprises, especially small and medium-sized ones, in bolstering sci-tech innovation, speeding up the industrial application of innovation achievements and strengthening the training of high-level talent.

"China's new economic growth drivers come from industrial transformation and upgrades as well as technological innovation. By giving play to the leading role of enterprises in bolstering sci-tech innovation as well as stimulating their innovation vitality, the country could speed up the formation of sound institutions and mechanisms for fostering new quality productive forces," said Li Dongsheng, founder and chairman of Chinese consumer electronics maker TCL Technology Group Corp.

Chinese enterprises should enhance independent innovation capacities and pour more capital into core technologies, said Li, who is also a deputy to the 14th National People's Congress.

Jia Shaoqian, chairman of Chinese home appliance manufacturer Hisense Group and also a deputy to the 14th NPC, said the country's continued efforts to nurture new quality productive forces are conducive to promoting the high-end, intelligent and green transformation of the manufacturing sector, while calling for more efforts to step up capital support for enterprises' technological innovation projects.

In recent years, the country's strength in sci-tech innovation has made significant progress. According to the World Intellectual Property Organization, China has moved up to 11th place in the ranking of the world's most innovative economies and remains the only middle-income economy in the top 30.

Zhou Hongyi, founder and chairman of Chinese internet enterprise 360 Security Group, and a member of the 14th National Committee of the CPPCC, said that building a modern industrial system is key to improving the country's economic strength.

Looking ahead, the growth potential of the country's economy will come from industrial upgrades driven by technological innovation, while generative AI technology represented by large language models will give birth to new production and business models in traditional fields including manufacturing, agriculture and services, and create more social value, Zhou added.

"Technology and innovation are key to bringing disruptive changes to the Chinese economy. We have seen China leapfrogging in some new areas such as electric vehicles, energy storage, aerospace, solar photovoltaics and wind energy," said Denis Depoux, global managing director of market consultancy Roland Berger.