 amid the country’s accelerated efforts for China’s economic upgrading.){kind=link}
In a bid to foster new growth drivers and promote high-quality development, Chinese President Xi Jinping has stressed developing new quality productive forces (NQPF) amid the country’s accelerated efforts for China’s economic upgrading. The concept was initially introduced by Xi in 2023 during inspection in China’s north-east Heilongjiang province; NPQF was highlighted at a key meeting on economic work last December, and became the subject of a group study session of the Communist Party of China (CPC)’s leadership earlier this year. In this year’s top legislature meeting of the Twin Sessions, NPQF dominated policy discussions in many areas, and was placed as the top priority of the government’s work in 2024 in the government work report.
The key implications of the concept and how China plans to implement New Quality Productive Forces as the country pursues high-quality development are discussed below. Focusing on innovation, NQPF implies advanced productivity that is not encumbered by the traditional economic growth mode and productivity development paths. It features high-tech, high efficiency and high quality, and is in consonance with the new development philosophy. NQPF is driven by revolutionary technological breakthroughs, innovative allocation of production factors, and deep industrial transformation and upgrading. It signifies the improvement of workers, means of labour, subjects of labour and their optimal combinations. The scarlet thread of the revolutionary idea is a substantial increase in total factor productivity. It is marked by innovation and with high quality as the key, new quality productive forces are advanced productivity in essence.
The possible consequences of introducing NQPF are promoting high-quality development through the consensus and conscious action of the whole CPC and the Chinese society in the new era. However, there are still numerous constraints restricting high-quality development, which must be guided by a new productivity theory. The modus operandi of accelerating the development of NQPF comprises the continuation of well leveraged innovation is to speed up the development of this revolutionary theme. It also entails Sci-tech innovation to generate new industries, new models and new growth drivers, which are the core elements of the development of NQPF. Simultaneously, it is imperative to strengthen sci-tech innovation, especially original and disruptive innovation. It is amply clear that sci-tech innovations should be applied to specific industries and industrial chains in a timely manner. In view of the challenges of climate change, it is imperative to expedite the green transformation of growth models and contribute to carbon peaking and carbon neutrality. This necessitates evolving new types of relations of production appropriate to the development of NQPF. This inspiring milieu makes it essential to further deepen reforms of the economic system and the science and technology management system, and to remove bottlenecks that hinder the development of NQPF.
Simultaneously, it will be obligatory to smooth the virtuous cycle of education, science and technology as well as talent in accordance with the requirement of developing NQPF, and improve the mechanism of talent training, introduction, use and flow. While this new thought process merits hard work, there are some essential considerations, which must be borne in mind along with highlighting some pitfalls, which must be avoided. In his wisdom, President Xi Jinping called for focusing on high-quality development as the top priority, urging efforts to step up innovation, foster emerging industries, adopt forward-thinking plans for developing future-oriented industries and improve the modernized industrial system.
Xi highlighted that developing new quality productive forces does not mean neglecting or abandoning traditional industries. He cautioned against making a headlong rush into projects and the formation of industry bubbles, and avoiding the adoption of just a single model of development. The Chinese President urged localities to take into account their own resource endowment, industrial foundation and scientific research conditions in promoting the development of new industries, models and growth drivers in a selective manner, and use new technologies to transform and upgrade traditional sectors into high-end, intelligent and green industries. This strategy is seen as key to maintaining and enhancing China’s quality growth, both now and in the future. The development of NQPF in the world’s second-largest economy comes at the right time to address economic challenges. By emphasizing innovation, China aims to create a robust ecosystem for research and development. This leads to the creation of cutting-edge technologies, which in turn drives economic growth. Investments in areas such as artificial intelligence, quantum computing, and biotechnology enhance productivity and competitiveness. The focus shifts from sheer quantity to quality. Industries are encouraged to produce goods and services that meet international standards.
The process promotes sustainable practices, reducing environmental impact. By focusing on high-value-added products, China aims for long-term economic stability. China, after years of rapid growth, is shifting toward an economy characterized by high-quality development and industrial upgrading. By fostering NQPF, China hopes to transform traditional industries, making them more advanced, intelligent, and environmentally friendly. This transition is vital for improving productivity, efficiency, and global competitiveness. For example, China’s push toward intelligent mining exemplifies this shift. By introducing advanced technologies in the coal mine industry, China aims to enhance production safety and efficiency while reducing pollution.
The impact of NQPF on China’s economic structure is already evident. According to the National Bureau of Statistics, there has been significant year-on-year growth in sectors like new energy vehicles, solar cell production, and service robots. China’s global standing in research and development investment and innovation indices further underscores the country’s commitment to these new forces. Looking to the future, these new forces are expected to drive growth in emerging sectors. The rapid adoption of technologies like artificial intelligence and blockchain demonstrates this trend. The government plans to spearhead development in future industries such as quantum technology and life sciences, while establishing zones dedicated to these cutting-edge sectors. NQPF is poised to become a major driver of China’s economy, playing a crucial role in China’s vision of becoming a great modern socialist country. In a nutshell, China’s NQPF fosters innovation, quality production, and strategic industry growth, ultimately contributing to robust and sustainable economic development.
S. M. Hali
The writer is a Retired Group Captain of PAF, who has written several books on China. He can be reached at email: [email protected]