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'New quality productive forces' take center stage in China's development plans

By Wang Yiming and Xu Xiaoxuan
0 Comment(s)Print E-mail China.org.cn, March 8, 2024
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Ever since Chinese President Xi Jinping introduced the term "new quality productive forces" in September, it has been among the priorities for China's economic work in 2024. During this year's "two sessions," the concept has once again taken the spotlight, with deputies to the 14th National People's Congress (NPC) sharing their insights into its implications and targeted practice.

The opening meeting of the second session of the 14th National People's Congress (NPC) is held at the Great Hall of the People, Beijing, March 5, 2024. [Photo by Wang Yiming/China.org.cn]

China's national economy is currently transitioning from high-speed growth to high-quality development, necessitating a solid material foundation provided by critical and disruptive technologies, said Huang Maoxing, an NPC deputy and vice president of the Fujian Academy of Social Sciences. 

Huang emphasized that traditional economic models focus on economies of scale and resource-intensive production. In contrast, new quality productive forces prioritize technological innovation, intelligent manufacturing and the creation of high-value-added products, meeting the demands for transitioning to a model of high-quality development.

Advancing strategic emerging industries

"By taking the lead in cutting-edge technologies such as next-generation information technology, biotechnology, artificial intelligence, new energy and aerospace, we aim to cultivate and boost new engines of industrial growth, thereby enhancing the competitiveness of our industry," Huang elaborated.

Data from the Ministry of Industry and Information Technology reveals a significant uptick in the contribution of strategic emerging industries to China's GDP — from 7.6% in 2014 to over 13% in 2022. Ambitious plans are underway to boost this figure to above 17% by 2025.

Group discussions at the ongoing NPC session have underscored the imperative to develop new quality productive forces suited to local conditions.

For instance, Xia Linmao, executive vice-mayor of Beijing, emphasized the capital's commitment to strengthening its digital economy and fast-tracking sectors like artificial intelligence and high-level autonomous driving. Meanwhile, Feng Fei, secretary of the Communist Party of China Hainan Provincial Committee, highlighted leveraging the island's ecological assets to advance industries in seed technology, deep-sea exploration and aerospace.

New energy and intelligent connected vehicles on display at the exhibition center of Zhongguancun National Independent Innovation Demonstration Zone, Beijing, May 26, 2023. [Photo/Xinhua]

Highlighting the role of quantum technology, Guo Guoping, an NPC deputy from Anhui province and deputy director of the Key Laboratory of Quantum Information at the Chinese Academy of Sciences, presented 10 proposals focused on addressing bottleneck issues in quantum computing to enhance China's independent quantum computer manufacturing chain. "Quantum technology, represented by quantum computing, will give rise to a batch of new quality productive forces," he said.

Echoing the sentiment on innovation, Shi Haofei, director of the Center for Nanofabrication and System Integration at the Chongqing Institute of Green and Intelligent Technology, who leads a team that specializes in researching new materials, pointed out that the key to developing new quality productive forces lies in disruptive technologies. He believes that technology companies should leverage their strengths to solve critical technical issues from the ground up, suggesting a bolstering of foundational research capabilities in leading tech enterprises.

Upgrading traditional industries

"The emergence of new quality productive forces involves nurturing and fortifying emerging and future industries, as well as facilitating the iterative upgrading of traditional industries," Huang Maoxing explained. 

He emphasized the need to develop clear transformation and upgrading plans for traditional industries, with a particular focus on providing support and investment in key areas such as technology, talent and capital. This strategic approach aims to guide traditional industries toward intelligent, environmentally friendly and high-end development.

During the ongoing "two sessions," NPC deputy Wang Zugang echoed the call for upgrading traditional industries, specifically highlighting the construction sector.

Wang, a staff member from China Railway Group Limited, proposed the vigorous promotion of the digital transformation and high-quality development of the construction industry. He underlined the need to accelerate the formation of new quality productive forces tailored to this sector.

"The construction industry, as a pivotal sector of the national economy, constitutes a crucial component of industrial modernization," Wang said. He added that with the current focus on new quality productive forces, a fresh focus, intelligent, green and digital construction is a sure path toward achieving high-quality development. 

Wang pointed out that the adoption of new construction methods and management models can enhance design and production efficiency by over 30% and 40%, respectively, with a corresponding reduction in project timelines of over 30%. This, he argued, would effectively address environmental sustainability and energy scarcity challenges in construction.

To facilitate the upgrading of the construction industry, Wang recommended that government departments introduce plans and policies aligned with new construction methods and management models. Simultaneously, he stressed the importance of nurturing the industry chain by selectively fostering technological innovation enterprises in design, equipment and materials. This can be achieved by providing targeted support for automation equipment and advanced intelligent technologies that enhance production efficiency and quality.

Agricultural modernization is also closely tied to the development of new quality productive forces. The annual Chinese government work report emphasized making breakthroughs in key agricultural technologies and launching an initiative to address weaknesses in agricultural machinery and equipment.

Liu Jiguo, an NPC deputy and president of YTO Co. Ltd., a major agricultural machine manufacturer in China, proposed cultivating new quality productive forces in the field of agricultural machinery, focusing on producing greener, more intelligent and high-end agricultural equipment.

An unmanned tractor performs baling operations in a demonstration field of Weichai Lovol Intelligent Agricultural Technology Co. Ltd. in Weifang, Shandong province, June 17, 2023. [Xinhua/Zhang Haobo]

"Promoting innovation in the agricultural machinery and equipment industry is an essential choice to accelerate the formation of new quality productive forces," Liu said.

In terms of specific approaches, Liu suggested expediting key technology R&D to overcome core technological barriers hindering the development of high-end agricultural power equipment. This approach aims to propel advancement toward middle and high ends of the industrial and value chains. Additionally, he proposed advancing labor reduction and unmanned operation of agricultural machinery, and concurrently nurturing green agricultural technologies. 

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