China is embarking on a significant journey with its New Quality Productive Forces, attracting global attention. These forces include emerging industries like new materials, green technology, and advanced equipment, as well as futuristic sectors such as virtual reality and robotics.
Focused on innovation, these forces represent a shift from traditional economic models to high-tech applications that are efficient and of high quality. China is moving towards an innovation-driven economy from a labor-intensive one, with both traditional and high-tech industries advancing. Efforts are underway to boost industrial innovation through technology upgrades and to foster new sectors.
In 2023, China spent 3.3 trillion yuan ($454.8 billion) on research and development (R&D), an 8.1 percent increase, which accounted for 2.64 percent of its GDP. The country is emphasizing indigenous innovation to achieve breakthroughs in core technologies, with a focus on strengthening funding for basic research.
China is recognized as a global leader in innovation, ranking 12th in the Global Innovation Index 2023. By the end of 2023, it had 24 of the top 100 science and technology clusters globally, claiming the top spot for the first time.
Recent policies introduced by China aim to attract foreign investment and promote high-quality development driven by New Quality Productive Forces. This shift aims to transition China from being known for “Made in China” to “Created by China.”
China’s dynamic market is at the forefront of innovation and rapid progress, attracting investors seeking new opportunities. As China continues to open up its manufacturing sector, it creates more avenues for trade and investment, with businesses adopting new technologies to stay competitive.
Nurturing New Quality Productive Forces will not only accelerate China’s high-quality development but also contribute to global economic recovery. It will generate significant demand for new technologies, products, and services, offering substantial business prospects for investors worldwide.
Cooperation between China and the world is crucial. Foreign companies can play a pivotal role in supporting China’s initiatives in decarbonization, automation, and digitalization, enhancing global economic and supply chain diversity.
