China is currently at a critical juncture in its industrial development, where the shift from traditional to new momentum is markedly visibleThe waning influence of traditional drivers of growth is a challenge, but the journey toward cultivating the new engines of economic progress is still in its early stagesTo ensure a smooth transition between these two forces, it is imperative to harmoniously develop and renew old and new growth drivers, tailoring the approach to local conditions to boost what is referred to as "new quality productivity."
In 2024, China is poised to make history as the first nation to exceed an annual production of ten million electric vehiclesAdditionally, the domestically manufactured C919 aircraft has successfully transported over one million passengers, solidifying the country’s position in the aviation sectorThe number of effective invention patents in strategic emerging industries has reached an impressive 1.349 million, and more than 140,000 specialized and innovative small and medium enterprises have been nurtured thus far
The high-tech manufacturing sector has consistently outpaced all other sectors in terms of growth in added valueThese impressive figures highlight that new quality productivity is continuously creating fresh growth points, demonstrating robust driving forces and support for high-quality development.
Insights gathered from recent economic work conferences held across various provinces signal a promising outlook for local initiatives in 2025. Taking major economic provinces as case studies, Guangdong’s agenda emphasizes a commitment to a robust real economy and a focus on manufacturing as a centerpieceThe province aims to accelerate the establishment of complete innovation chains and vigorously pursue the "Artificial Intelligence Plus" initiative to bolster emerging and future industries, ultimately seeking to create a modernized industrial frameworkMeanwhile, Jiangsu has outlined steps to cultivate world-class advanced manufacturing clusters and ensure a seamless transition between old and new growth drivers through technology innovation
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Sichuan’s strategy involves implementing actions to speed up the development of emerging industry sectors, revitalizing traditional industries, and enhancing manufacturing through digital transformation.
As China navigates this transformational phase, it is crucial to recognize that traditional sectors should not be discarded as "low-end industries." The footprint of traditional manufacturing—including steel, nonferrous metals, petrochemicals, machinery, and textiles—constitutes over 80% of the industry and serves as the backbone of the manufacturing ecosystemThe evolution of emerging industries is heavily reliant on traditional sectors for raw materials and componentsTherefore, upgrading and transforming these traditional sectors will pave the way for new industries by providing ample application scenarios for innovative technologies.
While it is essential to phase out outdated and inefficient production capacities, there is an equally pressing need to leverage advanced and frontier technologies to rejuvenate traditional industries
By instilling new vitality in these sectors, they can become vital carriers for new quality productivity, fostering a vibrant and resilient industrial landscapeThe efforts to optimize existing capacities must be paralleled by the expansion of the production of emerging and future industries, which represent cutting-edge sectors within the modern industrial system.
Recent statements from the Ministry of Industry and Information Technology emphasize the significance of nurturing emerging industries to forge new economic momentumInitiatives to cultivate such industries and spearhead innovations in fields like biomanufacturing, quantum technology, embodied AI, and atomic-level manufacturing are already taking shapeThe growth potential of emerging and future industries is substantial, making them key focal points for local economic policies aimed at stability and long-term strategic development
However, care must be taken to avoid a “race to the bottom” scenario where local governments compete to attract industries by offering overly lax regulations or incentives, resulting in inefficiencies and poorly coordinated efforts.
China's extensive and diverse industrial ecosystem, coupled with a vast and unified domestic market, provides a unique advantageThe variations in regional development present opportunities for strategic maneuvers to enhance productivityThis pursuit of new quality productivity and robust industrial foundations emphasizes the need to align with the overarching trends of industrial developmentA synchronized approach that balances the transition of traditional industries, the strengthening of emerging sectors, and the foresight to plan for future innovations is essential.
Furthermore, restructuring the spatial distribution of productivity is vital, guiding industry transitions in an orderly manner across regions