New Quality Productive Forces Modernizing Chinese Economy

The most important annual event of China’s political calendar, known as the two sessions, always offers a transparent window for the international community to get a deep insight into Chinese system and agenda of Chinese government for the year.

For this year, the government work report announced by Chinese Premier Li Qiang during the second session of the 14th National People’s Congress (NPC) has gained global attention. In the work report, the Chinese central government makes commitments to promoting economic transformation with new quality productive forces and expanding institutional opening up.

This year marks the 75th anniversary of the founding of the People’s Republic of China. The process of the implementation of the 14th Five-year Plan (2021- 2025) has laid a solid foundation for the country’s economic agenda in the year 2024 and beyond.

As an international observer of China’s two sessions, especially after reading the government work report, I have an optimism about the economic growth target of 5 percent set by the Chinese government. China’s target is achievable and feasible based on its economic and monetary policies.

To achieve the economic target, China has been making progress in building a modernized industrial system and accelerating the development of new quality productive forces. The term “new quality productive forces” was first mentioned by President Xi Jinping last September and has become a buzzword both at home and abroad.

Undoubtedly, “developing new quality productive forces at a faster pace” has become a top priority for China to integrate scientific and technological innovation with economic development. This task is being taken as a key element to foster new growth drivers and promote high-quality development of China.

Scientific and technological innovation has been put at the core of China’s development strategy. It will also play a leading role in developing new quality productive forces which feature high technology, high efficiency and high quality, and comes in line with the new development philosophy. With advanced productivity, China can change its traditional economic growth models and get new development drivers.

To meet the needs for quality growth of Chinese economy in coming years, new quality productive forces should be supported by the scientific and technological development that includes cutting-edge technologies, big data, cloud computing, Internet of things, artificial intelligence, chips and new energy that will increase productivity with impetus and sustainability.

Now the significant stress on new quality productive forces placed by the world’s second-largest economy rightly comes at a time when the international economic system is also looking for great support from Chinese economy.

International financial institutions have also estimated that the contributions of Chinese economy to global economic growth will remain up to 30 percent in the coming years, which shows the big responsibility lying on the shoulders of China as a powerhouse of the world economy.

In this scenario, China is highly expected to transform traditional industries into more advanced forms which are more environmentally friendly, intelligent and highly efficient while improving the outcome and global competitiveness.

Keeping in mind the future prospects, new quality productive forces are expected to inject new momentum in emerging sectors. The integration of technologies and blockchain demonstrates that the government is willing to bolster the development of future industries such as life sciences and quantum technology.

Facing the impact of the countertide of economic globalization, China needs to accelerate the structural reforms, constantly enhance the internal and external linkage of development, release the huge potential of economic transformation, stimulate the market vitality and stabilize the growth expectation, as well as pursue mutually beneficial economic relations with the rest of the world.

The economic layout unveiled in the government work report has also demonstrated that new quality productive forces will drive the Chinese modernization and opening up in the long term.

In the government work report, China again shows its resolve to deepen reform and further opening up with the help of new quality productive forces. With new growth drivers in Chinese economy, the country can further advance reform and opening up, which not only determines the future of China’s economic transformation and development but also has a significant impact on global economic growth, trade pattern and economic governance.

China also stresses the country’s self-reliance in science and technology development. Self-dependent technological innovation and development will strengthen China’s industrial system and supply chains, making the country a more competitive global player in high-end industries such as digital sector and new energy.

The vision of new quality productive forces will prove that the advancement of Chinese economy with technological innovation will help the world achieve sustainable economic growth.

The article reflects the author’s opinions, and not necessarily the views of China Focus.