The 26th Peking University Guanghua New Year's Forum is held in Beijing on Jan. 11, 2025. [Photo courtesy of Peking University Guanghua School of Management]

Innovation and reform are essential for driving sustainable global economic growth, experts said at the 26th Peking University Guanghua New Year's Forum on Jan. 11.

Hosted by Peking University's Guanghua School of Management, this year's forum focused on the theme "Innovation-driven Growth: Empowering a Sustainable Global Economy," which aimed to tackle the challenges and opportunities arising from rapid technological, environmental and economic changes.

In his keynote speech, "Technological Innovation as the Pillar of New Quality Productive Forces," Wang Yiming, vice chairman of the China Center for International Economic Exchanges, emphasized that technological innovation is crucial for developing new quality productivity.

Wang proposed several recommendations to foster a virtuous cycle between education, technology and talent. He stressed the need to lead in innovation, urging a focus on breakthroughs in intermediate and foundational technologies rather than solely on end-product advancements. He also underlined the importance of moving from integrated innovation to original innovation, supported by more open talent policies.

The economist further advocated for reforms in the financial system, suggesting the development of multi-tiered capital markets and the exploration of new credit financing models to better support technology-oriented enterprises.

Liu Yuanchun, president of the Shanghai University of Finance and Economics, expressed concern over rising global debt levels, calling it an urgent issue. Speaking at the forum, he noted that structural reform will likely become a key focus of global competition in the years ahead.

While global competition may appear to center on political rivalry and technological advancements, Liu emphasized that its underlying driver is always reform.

Discussing the future of general artificial intelligence, Zhu Songchun, chair professor at Peking University and dean of its Institute for Artificial Intelligence, stressed the need for China to pursue a distinct development path for AI that emphasizes self-reliance and cultural innovation.

Zhu urged researchers and policymakers to modernize governance models, address interdisciplinary challenges, and promote an innovative culture that integrates traditional Chinese philosophy with global perspectives. He also called for a shift in the research paradigm from being data-driven to value-driven.

Liu Qiao, dean of the Guanghua School of Management at Peking University, delivers a keynote speech at the 26th Peking University Guanghua New Year's Forum on Jan. 11, 2025. [Photo courtesy of Peking University Guanghua School of Management]

Liu Qiao, dean of the Guanghua School of Management at Peking University, delivered a keynote speech titled "Seeking Certainty in an Era of Uncertainty through Innovation" at the forum. He emphasized that total factor productivity (TFP) is not only a cornerstone of long-term economic growth but also a crucial benchmark for assessing new quality productive forces.

Liu noted that China possesses large-scale production scenarios conducive to TFP growth, and the comprehensive deepening of reforms and technological revolutions will create significant opportunities for TFP improvement. However, he acknowledged that insufficient productivity growth remains a long-term global challenge.

Looking ahead to 2025, Liu stressed the importance of innovation in addressing uncertainties and expressed confidence in China's ability to achieve a 5% economic growth rate this year.

He outlined six key areas where China should focus: capturing specific aspects of uncertain growth through policy innovation, identifying opportunities in energy transition and digital economy development, reducing the urban-rural gap to boost residents' consumption rates, creating a financial system aligned with high-quality development, and pursuing global opportunities to enhance the value chain.

Since its establishment in 1998, the Guanghua New Year's Forum has become one of China's leading platforms for dialogue on economic and management issues. The forum aims to address critical challenges and explore strategies to promote sustainable growth by bringing together leaders from government, academia and industry.