Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, made the remarks in a reply letter to people in Jingning She Autonomous County in Zhejiang Province.
Established in 1984, Jingning is the country’s sole autonomous county of the She ethnic group.
“Global investors are seizing a new round of opportunities arising from the development of new quality productive forces,” Wang Jinxia, deputy director of the Qianhai Authority, told China Economic Roundtable, an all-media talk platform hosted by Xinhua News Agency.
First introduced in 2023, new quality productive forces refer to advanced productivity freed from the traditional economic growth mode and productivity development paths. It features high-tech, high efficiency and high quality.
Official data shows that Qianhai, situated in the southern metropolis of Shenzhen, Guangdong Province, is now home to over 10,000 foreign-invested firms.
Wang noted that as China remains the world’s largest market, the development of new quality productive forces continues to generate market demand, attracting a growing number of global investors.
The development of new quality productive forces enables global investors to play a greater role in the latest round of technological revolution and globalization, Wang said.
Looking ahead, Wang added that Qianhai would work to elevate its institutional opening up, and cooperation and innovation efforts to higher levels.
“We are poised to transform Qianhai into a powerhouse driving China’s high-quality development by accumulating global resources, advancing innovation, and pursuing coordinated growth,” he said.
China’s State Council released a development plan in 2010, aiming to build Qianhai into a demonstration zone for modern service industry innovation and cooperation between Guangdong and Hong Kong.
Years into its development, Qianhai is now renowned for its roles as an airport and seaport hub, a venue for conventions and exhibitions, and as a provider of modern services.
No country has put forward this theory of new quality productive forces in such a clear, scientific way as China is now doing, said Keith Bennett, London-based long-time China specialist.
Ahmed Al-Husseini, researcher from Cairo University and an expert on Chinese affairs, said the concept of new quality productive forces revolves around moving from the mass production and “Made in China” concepts to “Innovated in China.”
China’s deployment of new quality productive forces reflects its commitment to fostering innovation-driven development and upgrading its industrial structure, said Benjamin Mgana, chief editor of foreign news of The Guardian, Tanzania.
Wang Zi, assistant general manager of Xi’an Micromach Technology Co., Ltd., said new quality productive forces feature high technology and innovation, which can improve production quality and efficiency, as well as introduce new technologies to address major challenges in industry development.
“I am very optimistic that this new, high quality, high-tech, productive forces would be a huge step forward for humans, can make much better and lower-cost products. And we can do it in a much more environment-friendly way,” said Erik Solheim, co-chair of the Europe-Asia Center and former under-secretary-general of the United Nations.
The development of China’s new quality productive forces may have significant impacts on the global economy, influencing innovation and competitiveness across various sectors and industries, said Ronnie Lins, director of the China-Brazil Center for Research and Business.
First introduced in 2023, new quality productive forces refer to advanced productivity freed from the traditional economic growth mode and productivity development paths. It features high-tech, high efficiency and high quality.
The institutional reform in the field of science and technology is essentially forming a new production relation that is in line with the new quality productive forces, with priority given to addressing the obstacles that hinder their development, Liu Dongmei, secretary of the Party Committee of the Chinese Academy of Science and Technology for Development, told China Economic Roundtable, an all-media talk platform hosted by Xinhua News Agency.
First introduced in 2023, new quality productive forces refer to advanced productivity freed from the traditional economic growth mode and productivity development paths. It features high-tech, high efficiency and high quality.
With innovation playing the leading role, “new quality productive forces” has become a catchphrase in China’s policymaking initiatives, promising an era marked by breakthrough innovations and comprehensive sustainability.
One crucial aspect of these reforms lies in the coordination among different departments in terms of formulating strategy, allocating resources, and the layout of major facilities to maximize the efficiency of resource utilization, as technological innovation relies heavily on the synergy among multiple factors, including technological and financial ones, Liu said.
Another focus of reform should be the alignment between central and local governments, Liu added, highlighting the pivotal role of local government in pushing technological innovation, as well as the role of central government in guiding the local bodies.
Echoing Liu’s analysis, Huang Hanquan, head of the Chinese Academy of Macroeconomic Research affiliated to the National Development and Reform Commission, said institutional reforms ought to be multifaceted and comprehensive, thereby facilitating the smooth flow of high-quality factors of capital, data and talents towards high-quality productive forces.
Noting that China still falls short in terms of original and disruptive innovative achievements, Huang underscored the need to strengthen basic research by reforming the sci-tech system, optimizing the evaluation regime for research projects, and enabling researchers to wholeheartedly engage in basic research.
Another barrier to innovation lies in a lack of application of technological breakthroughs to industrial chains, said Huang, urging deeper reforms in technology services to expedite the application of technological achievements in factories and transform them into tangible productivity.
In particular, both Huang and Liu highlighted the role of talent management in driving technological innovation.
There is still room for creating a more enabling environment for innovation efforts through enhancing the long-term research evaluation regime and non-consensus projects review, as well as expanding stable funding for basic research so that the potential and vitality of talents can be stimulated, Liu said.
In a bid to nurture talents with critical and innovative thinking, Huang called for deepening the integration of science and technology, education, and talent development to enable the curriculum and talent cultivation models to better serve talent development.
First introduced in 2023, new quality productive forces refer to advanced productivity freed from the traditional economic growth mode and productivity development paths. It features high-tech, high efficiency and high quality.
During the discussion, Huang Hanquan, head of the Chinese Academy of Macroeconomic Research under the National Development and Reform Commission, said that strategic emerging industries and future industries are indeed the key to form new quality productive forces, while traditional industries are also of great significance.
“Traditional industries account for about 80 percent of the entire industrial system, serving as its cornerstone and largest base,” Huang said.
Echoing Huang’s views, Liu Dongmei, Party chief of the Chinese Academy of Science and Technology for Development, said that without the sound development of traditional industries, the emerging and future industries might face the risks of supply chain disruption.
On the other hand, new technologies and processes arising from the development of emerging and future industries can in turn benefit traditional industries. “We believe that they are complementary, and are able to mutually integrate with one another,” she said.
Application scenarios of new technologies, new patterns and new business models, such as artificial intelligence, can also be used in traditional industries, while traditional industries could provide upstream and downstream support, according to Huang.
Localities should give full play to their advantages to forge competitive landmark industries through the convergence of resources, technologies, enterprises and factors, Huang added.
Fostering new quality productive forces tailored to local conditions should involve a combination of resource endowment, industrial foundation and national development plans for different regions, advancing in an orderly manner, Liu said.
During the latest episode of the China Economic Roundtable, an all-media talk platform hosted by Xinhua News Agency, guest speakers concurred that this development strategy will not only generate vast opportunities for global investors seeking innovation-driven growth, but also create a more prosperous and sustainable future for the world.
First introduced in 2023, new quality productive forces refer to advanced productivity freed from the traditional economic growth mode and productivity development paths. It features high-tech, high efficiency and high quality.
CREATING NEW OPPORTUNITIES
“Alongside Chinese companies, global investors are seizing a new round of opportunities arising from the development of new quality productive forces,” said Wang Jinxia, deputy director of the Qianhai Authority. Qianhai is a modern service industry demonstration zone in the southern economic powerhouse Shenzhen.
Wang noted that as China remains the world’s largest market, the development of new quality productive forces will continue to generate market demand, attracting a growing number of global investors.
Eyeing new business opportunities, foreign companies have invested over 40 billion U.S. dollars in Qianhai, official data shows.
“Additionally, the development of new quality productive forces is offering global investors opportunities to play a greater role in the latest round of technological revolution as well as globalization,” Wang said.
French multinational Schneider Electric established several research and development centers across China in 2023 on digital power, automation and artificial intelligence.
“The importance of the Chinese market, from my point of view, has not changed,” said Barbara Frei, the executive vice president of Schneider Electric, in a recent interview with Xinhua. She voiced confidence in China’s position as a more mature economy and the biggest market in industrial automation, and highlighted the country’s role as an “innovation driver.”
Amid China’s latest efforts to foster new quality productive forces, Vice Premier Zhang Guoqing recently emphasized the need to integrate sci-tech innovation with industrial innovation, calling for efforts to promote large-scale equipment and technological upgrades in China’s manufacturing industry.
The country has also pledged to continue shortening its negative list for foreign investors, scrapping all restrictions for those entering the country’s manufacturing industry.
Driven by the country’s unwavering focus on innovation, foreign direct investment in China’s hi-tech manufacturing sectors reached 37.76 billion yuan (about 5.32 billion U.S. dollars) during the first quarter of this year, according to the Ministry of Commerce.
FUELING GLOBAL GREEN SHIFT
As China continues to cultivate new quality productive forces through sci-tech innovation, the country is also sharing its intelligent, eco-friendly and inclusive technologies with other countries, said Liu Dongmei, secretary of the Party Committee of the Chinese Academy of Science and Technology for Development, during the China Economic Roundtable.
The world is faced with challenges including food security, natural disasters and climate change, Liu noted, adding that with its rich experience, China has much to offer in addressing these issues.
“The country is developing new quality productive forces in an open and inclusive manner, which means that it is willing to share its knowledge and innovation outcomes with the rest of the world,” Liu said. “I believe that developing new quality productive forces is essential for not only driving global economic growth but also for forging a better future for humanity as a whole.”
Frei said that China boasts global leadership in supplying components for renewable markets, including wind turbines, solar panels and electric vehicle batteries. “In today’s energy landscape, China leads the way.”
A report titled “Renewables 2023” by the International Energy Agency (IEA) has described China as the “world’s renewables powerhouse,” citing the economic attractiveness of renewable energy technologies as well as a supportive policy environment. “China’s role is critical in reaching the global goal of tripling renewables because the country is expected to install more than half of the new capacity required globally by 2030,” the report stated.
According to Fatih Birol, executive director of the IEA, China is a “champion of the world in clean energy” due to its excellent progress in solar and wind power, electric vehicles and power batteries, which helps lower the prices of clean energy equipment for other countries.
What are the core elements of “new quality productive forces”? How should they be developed, and what are the implications for the rest of the world? In the sixth episode of the China Economic Roundtable, an all-media talk platform hosted by Xinhua News Agency, government officials and industry insiders shared their insights on some of the most frequently asked questions about the buzzphrase.
INNOVATION AT CORE
First introduced in 2023, new quality productive forces refer to advanced productivity freed from the traditional economic growth mode and productivity development paths. It features high-tech, high efficiency and high quality, and comes in line with the new development philosophy.
The new strategy comes amid China’s push for high-quality development and the surging tide of new scientific revolution and industrial transformation, according to Liu Dongmei, Party chief of the Chinese Academy of Science and Technology for Development.
“Scientific and technological innovation is the core of the new quality productive forces,” she said, noting that through sci-tech innovation, especially in breakthrough and disruptive technologies, new growth impetus can be provided for economic development.
China’s overall strength in science and technology innovation has steadily improved in recent years, with the country’s research and development (R&D) expenditure exceeding 3.3 trillion yuan (about 463.5 billion U.S. dollars) in 2023, an increase of 8.1 percent year on year.
Huang Hanquan, head of the Chinese Academy of Macroeconomic Research affiliated to the National Development and Reform Commission, said the development of the new quality productive forces covers both emerging industries and traditional industries, and that innovation involves technologies as well as institutions and management.
“Sci-tech and institutional innovations are like two wheels propelling the growth of China’s total factor productivity,” Huang said at the roundtable.
Qianhai in China’s southern tech hub Shenzhen, a modern service industry demonstration zone, has set an example in developing new quality productive forces through technological and institutional innovations.
Wang Jinxia, deputy director of the Qianhai Authority, said local authorities focused on fostering an industrial cluster for artificial intelligence, intellectual property protection, strengthening financing support and building large platforms for industrial development.
Today, there are around 55,000 tech firms in Qianhai, of which 2,239 are national high-tech enterprises, and 14 are unicorn companies or startups valued at more than 1 billion U.S. dollars, according to Wang.
GUIDING FUTURE REFORMS
The new strategy has charted a clear path for high-quality development and relevant reforms as China strives to eliminate the bottlenecks that strain the development of new quality productive forces, according to the panelists.
Institutional reforms in the field of science and technology essentially involve forming new relations of production that are in line with the new quality productive forces, Liu said.
Liu added that one crucial aspect of these reforms lies in interdepartmental coordination in terms of formulating strategy, allocating resources, and distributing major facilities to maximize the efficiency of resource utilization.
Echoing Liu’s views, Huang said institutional reforms ought to be multifaceted and comprehensive, thereby facilitating the smooth flow of high-quality factors like capital, data and talent toward high-quality productive forces.
Huang also underscored the need to reform the sci-tech system to encourage inputs into basic research for more original and disruptive achievements, and to reform services to expedite the application of technological advancements, transforming them into tangible productivity.
In particular, both Huang and Liu highlighted the role of talent management in driving technological innovation.
Efforts need to be made to create a more enabling environment for innovation to attract more talents to work and live in China, reform the education system to nurture more future scientists, craftsmen and engineers, and improve evaluation systems to encourage long-term basic research, Liu said.
GLOBAL BENEFITS
China’s ongoing efforts to foster new quality productive forces will inject fresh momentum into global economic growth and provide massive opportunities for investors, according to the panelists and other industry insiders present at the roundtable.
“Alongside Chinese companies, global investors are seizing a new round of opportunities arising from the development of new quality productive forces,” said Wang with Qianhai Authority.
China’s development of new quality productive forces would generate opportunities for tapping into the country’s expanding market, according to Wang.
Global investors will also be able to work with China in pushing for the explosion of the new technological revolution, and participate in the latest wave of globalization, he said, adding that foreign companies have already invested over 40 billion U.S. dollars in Qianhai.
The development of China’s new quality productive forces may have significant impacts on the global economy, influencing innovation and competitiveness across various sectors and industries, said Ronnie Lins, director of the China-Brazil Center for Research and Business.
Driven by China’s unwavering focus on innovation, foreign direct investment in the country’s hi-tech manufacturing sectors reached 37.76 billion yuan (about 5.3 billion U.S. dollars) during the first quarter of this year, official data showed.
As China continues to cultivate new quality productive forces, the country is also sharing its intelligent, eco-friendly and inclusive technologies with other countries, said Liu with the Chinese Academy of Science and Technology for Development.
The world is grappling with several pressing global challenges, encompassing food security, natural disasters and climate change. With its rich experience, China has much to offer in addressing these issues, she said.
“I am very optimistic that this new, high quality, high-tech, productive forces would be a huge step forward for humans, can make much better and lower-cost products. And we can do it in a much more environment-friendly way,” said Erik Solheim, co-chair of the Europe-Asia Center and former under-secretary-general of the United Nations.
Noting that the century-long bond with Kuliang is a story of friendly exchanges between the Chinese and U.S. people, Xi said he is pleased to see young people from all walks of life in China and the United States gather in Fuzhou to relive the story of Kuliang, pass on the love of Kuliang, and help enhance exchanges and understanding between the two peoples.
Young people are energetic and full of dreams, and the future of China-U.S. relations lies in young people, Xi stressed.
Xi said it is hoped that Chinese and U.S. youth will have in-depth exchanges, enhance friendship, know each other well and work hand in hand to carry forward China-U.S. friendship, contribute to the sound and steady growth of China-U.S. relations, and work with people around the world to build peace, promote progress and create prosperity.
The “Bond with Kuliang: 2024 China-U.S. Youth Festival,” opened on Monday, is co-organized by the Chinese People’s Association for Friendship with Foreign Countries, the Fujian Provincial People’s Government, and the All-China Youth Federation.
