China and the role of technological innovation and new productivity forces

China has set its 2024 economic growth target at around 5%, if we tried to evaluate the role of this target in the global economic growth, we should analysis the role of technological innovation.

China has set its 2024 economic growth target at around 5%, if we tried to evaluate the role of this target in the global economic growth, we should analysis the role of technological innovation and new productivity forces in China’s economy, whereas the policy of the (new productivity forces in China’s economy), based on unifying market standards with regard to property protection, market access, fair competition, social credit, and other aspects. This contributes to accelerating the establishment of the rules of the single market system. The key to developing China’s new productive forces lies in technological innovation. More efforts should be made to build an innovative and safe technological ecosystem, improve an open scientific and technological innovation system, and promote the emergence of original innovation results. The number of university graduates in the Class of 2024 is expected to reach 12 million. In this context, many people’s representatives proposed to move forward with the implementation of social policies such as social security benefits and labor subsidies, to encourage market entities to enhance the labor “stock” and increase employment opportunities.

  The meetings of the two sessions, this year 2024, will focus on the “new productive forces” of the Chinese state, that is, on new resources in the field of emerging industries and in the technological sector. As Chinese President “Xi Jinping” emphasized during the Politburo meeting held on January 31, 2024, China intends to pay renewed attention to enhancing innovation, stabilizing supply chains, and integrating technology and industry, with the aim of achieving self-sufficiency, especially in light of trade.  With examining decisions and discussing policies on how to get rid of the restrictions imposed on the exchange of semiconductor production components that the United States of America has introduced in recent years to China. As Chinese President “Xi Jinping” explained, innovation should be used, in particular, to “transform and develop traditional industries, develop and expand new industries, as well as plan and build industries of the future”.

  This year 2024 marks the (46th anniversary of the implementation of China’s reform and opening-up to abroad policy). This policy has not only profoundly changed the country’s landscape, but also brought profitable opportunities to China and the world.  In particular, China has pursued a more proactive strategy of opening-up, which has greatly benefited many multinational companies. Over the past years, China has continued to move from “openness to the flow of goods and factors” to “institutional openness” in the areas of rules, regulations, management and standards, proving that opening up to the outside world is a key and decisive step for China’s development of technological innovation and creativity and promoting the policy of openness globally.

 “New productive forces” are considered an essential element for “promoting self-sufficiency in science and technology,” by delegates and representatives of the National People’s Congress of China and the Chinese People’s Political Consultative Council, and the meetings of the two sessions this year will devote ample space to these issues.  At the same time, discussions at the two-session meetings will focus on “high-level opening-up” and incentives for foreign companies, which China aims to intensify. In addition to China’s attempt to gain the confidence of investors in the Chinese market as the second largest economy in the world, by reaching new high levels, and working to stimulate the Chinese state’s national economy. China’s commitment to opening up to the outside world and building an open global economy has brought a new dimension to the global governance system.  The new measures taken by the country to promote openness attract more aspirations from the whole world. This is the same as what was confirmed by the (Chinese National Development and Reform Commission), that China’s position on encouraging foreign investment is clear, while its determination to expand openness to the outside world is firm. In recent years, the (National Development and Reform Commission of China) with the “Ministry of Commerce” and other agencies, have repeatedly revised the list of industries encouraging foreign investment and constantly expanded the scope of its encouragement and improved its direction, promoting the high-quality development of foreign investment. In the same time, the (Chinese National Development and Reform Commission) has worked with various agencies and governments around the world and at various levels to implement the new version of the list of industries encouraging foreign investment, to ensure that eligible foreign-funded projects fully enjoy the various preferential policies of the Chinese government.

   In the meetings of the two sessions 2024, the Chinese legislators continued to provide “legal guarantees” for the country’s progress, deepen reforms, improve the business environment and formulate “high-quality legislation for high-quality development”. We find out that China is pursuing higher-standard opening up, so, if we tried to evaluate China’s high level of opening up to the world, we can find that China has demonstrated a series of measures, expanding the policy of “high-level opening to the outside world”. One of the essential features of high-level openness is institutional openness. In October 2023, China announced (eight measures to support high-quality joint construction of the Belt and Road Initiative). The most important step for Chinese legislators in the meetings of the two sessions to make the policy of high-quality openness a success is: (ensuring the implementation of policies, deepening trade and investment cooperation with the initiative countries, and coordinating the processes of implementing major projects and projects that have a direct benefit to the lives of Chinese citizens).

   The two annual sessions this year 2024, are a major event for China and the world, as China works to increase investment abroad and share new technologies and achievements with the world. Chinese-style modernization also promotes the common development of all countries. The Global Development Initiative and the joint construction of the Belt and Road Initiative and other initiatives proposed by President “Xi Jinping” will continue to promote the improvement of people’s livelihood and common prosperity in all countries. The meetings of the two sessions represent an important window for observing the latest development policies and high-quality opening-up in China. New measures to accelerate the development of new qualitative productive forces and promote high-quality development deserve special attention.

  Here, China is accelerating the development of qualitatively new productive forces, including advances in areas such as artificial intelligence. This will not only benefit the Chinese people, but countries around the world will also benefit from this technological transformation. China’s success is precisely due to the commitment of leaders and government departments to scientific planning for economic development.  For example, the two sessions focus on implementing the “14th Five-Year Plan”, which is very important for the world, because there are many issues in the plan that have great impact and benefit the world.

Dr.Nadia Helmy
Dr.Nadia Helmy
Associate Professor of Political Science, Faculty of Politics and Economics / Beni Suef University- Egypt. An Expert in Chinese Politics, Sino-Israeli relationships, and Asian affairs- Visiting Senior Researcher at the Centre for Middle Eastern Studies (CMES)/ Lund University, Sweden- Director of the South and East Asia Studies Unit