China gears up for developing new quality productive forces

Zhou Fang (CGTN Radio Reporter)

China is accelerating the development of new quality productive forces by further deploying and developing emerging industries, especially strategic emerging industries, and future industries, in order to create new growth drivers and empower traditional industries. With the latest round of information technology revolution in full swing, productive forces have undergone iterative changes. The “new quality productive forces” has appeared in the government work report for the first time this year and the Chinese government has listed developing it as the top priority among the ten major tasks.

“New quality productive forces” refers to a new form of productivity that features a deep integration of informatization and industrialization with high-tech innovations at its core.

The new productive forces can bring higher efficiency and higher quality growth and is a leap in the evolution of productivity in human history.

New refers to various aspects, including new industries, new technologies, new models and new dynamics.

Developing Strategic Emerging Industries
China has continuously promoted the development of various emerging industries and shaped leading advantages in strategic emerging industries, such as new-generation information technology, new energy, new materials and advanced manufacturing. Many provinces and regions across the country are enhancing their strength of strategic emerging industry clusters and achieving high-quality development based on their specific development situations and characteristics.

For example, Jiangsu Province has formed a several-hundred-billion-dollar industrial chain for new energy vehicles and core components, exhibiting a powerful “spillover effect” in terms of innovation capability and development potential. The province has also ventured into other cutting-edge fields, such as transformative new materials.

In Shanghai, the artificial intelligence industry has a market size exceeding 380 billion yuan, or around 53 billion U.S. dollars. The city has approximately 350 enterprises, each with annual main business revenue of at least 20 million yuan, and a talent pool exceeding 250,000 individuals. The city is focusing on innovation, application demonstration and talent aggregation while seizing opportunities in large-scale models and intelligent computing power.

Increasingly Improved New Infrastructure
As data is one of the most prominent and critical factors of production for new quality productive forces, the rapid integration of data into various processes such as production, distribution and circulation will drive the development of the new productivity. China attaches great importance to constructing new infrastructure on data. The overall layout of the national integrated big data center system has been completed and the construction of 8 national computing hubs has been launched one after another.

According to data from the National Bureau of Statistics, in the first half of 2023, investment in new information infrastructure, such as 5G and data centers, increased by 13.1%. Investment in new integrated infrastructure such as industrial internet and intelligent transportation increased by 34.1%.

At present, China’s total computing power ranks second in the world, maintaining an annual growth rate of about 30%. Intelligent computing power facilities account for more than half of the newly added computing facilities.

According to the government work report, China will step up research and development and application of big data and AI, launch an AI Plus initiative, and build digital industry clusters with international competitiveness.

The initiative highlights the coordinated development of data, intelligent computing power and algorithm applications with various industries.

Technological Innovation
To accelerate the development of new quality productive forces, China must continuously pursue technological innovation. China has been striving to achieve technological innovation in emerging industries and strategic emerging industries and realize high-level technological self-reliance. In recent years, China has made technological innovations in areas such as new-generation information technology, biopharmaceutical industry, and high-end equipment manufacturing.

For instance, the orbiting Tiangong space station has been put into operation. So far, more than 110 in-orbit scientific research and application projects have been implemented, involving space life science and human body research, microgravity physics, and new space technologies, making multiple world’s firsts.

The “China Tianyan” FAST telescope has been conducting astronomical observations and the domestically-produced C919 aircraft has taken to the skies.

Forward-looking Layouts &Achievements in Future Industries
In addition to strategic emerging industries, China is also making forward-looking layouts and achievements in future industries, such as quantum computing, life sciences and brain-computer interface.

For instance, the country has successfully launched multiple quantum communication satellites and established the world’s first satellite-based quantum communication network. Chinese research teams have successfully developed various types of quantum computers, including superconducting quantum computers and ion-trap quantum computers.

China has also made significant advancements in biotechnology, including biomedicine and bioagriculture. It has successfully implemented a series of scientific research projects in genomics, proteomics and stem cell.

A research team from Tsinghua University has recently announced that they have enabled two patients with high paraplegia to control the movement of a cursor and a glove-like exoskeleton using wireless minimally invasive brain-machine interfaces.

Meanwhile, the Chinese government has reiterated its commitment to opening up new fields such as quantum technology and life sciences at this year’s Two Sessions.

New Model: Empowering Traditional Industries
While vigorously developing new quality productive forces, China has not ignored or abandoned traditional industries. The development of the new productive forces can also empower traditional industries. Provinces and municipalities are proceeding from their actual situations, based on local resources, industrial foundation, scientific research conditions, etc. They are selectively promoting new industries while using new technologies to transform and upgrade traditional industries.

For instance, Jiangsu Province is building a modern industrial system with advanced manufacturing as the backbone, guided by technological innovation. The province is promoting the upgrading of traditional industries, the growth of emerging industries, and the cultivation of future industries in an integrated manner.

To further enhance the competitiveness of its leading traditional industries, Tianjin is striving to establish a modern industrial system. The system is led by intelligent technology industries, focused on emerging industries such as biomedicine, and supported by leading traditional industries including equipment manufacturing.

Accelerating the development of new quality productive forces is one of the keys to achieving high-quality development. Nevertheless, all regions are advised to promote the development of new industries and models based on their actual situations.

With the rapid improvement of China’s new infrastructure construction and the continuous increase of technological innovations in strategic emerging industries, traditional Chinese manufacturing enterprises and industrial enterprises can also undergo digital transformation, intelligent upgrading, and integrated innovation to achieve high-quality development. This process, coupled with national policy support, will release tremendous opportunities and new dynamics.