China’s economic growth is expected to accelerate as the country focuses on cultivating new productive forces and enhancing technological innovation. Experts and industry leaders assert that this strategic pivot will not only facilitate industrial upgrades but also create significant business opportunities for both domestic and international investors. In alignment with its innovation-driven development strategy, China aims to expand strategic emerging industries and pave the way for future growth.
This initiative will involve strengthening innovation in advanced technologies, which is vital for gaining a competitive edge in an increasingly challenging global landscape. To support these efforts, the National Development and Reform Commission announced plans to establish a national venture capital guidance fund aimed at bolstering innovative enterprises. The Government Work Report has underscored the importance of developing new quality productive forces that will act as catalysts for high-quality development and modernization in China.
Huang Hanquan, head of the Chinese Academy of Macroeconomic Research, emphasized the importance of harnessing opportunities from the latest technological revolutions, especially in artificial intelligence, to ensure these innovations are integrated into industrial chains effectively. The transformation of traditional industries is crucial, and experts like Pan Helin of the Ministry of Industry and Information Technology have called for increased investments in R&D, particularly in key fields such as integrated circuits and high-end equipment. Data from the National Bureau of Statistics highlights that China’s R&D expenditure surpassed 3.6 trillion yuan in 2024, placing it second globally.
Industry leaders emphasize the need for Chinese enterprises to play a stronger role in technological innovation. Denis Depoux of Roland Berger noted China’s emergence as a global leader in various sectors, particularly in AI technology, which presents lucrative opportunities for businesses. As noted by Cui Jingyi from Aveva China, these new quality productive forces are essential for upgrading industries and achieving high-quality development, positioning China as a leading market for AI applications.