China's new-type physical enterprises vow to take advantage of digital technologies to foster the integration of the real economy and digital economy, and thereby promote the high-quality development of the real economy.

New-type physical enterprises refer to those with new technologies, new industries and new business modes. They can start from the digital economy, or can be transformed from traditional enterprises. Through technological innovations, they gain an irreplaceable, unique digital ability and enhance the efficiency of the whole supply chain, thereby promoting the digital and intelligent transformation of enterprises along the supply chain.

Zhang Haolin, general manager of the retail corporate affairs department and the public client business department of Chinese e-commerce giant JD, said: "As a new-type physical enterprise, using our digital technologies, we are helping those small and medium-sized trade enterprises, which were affected by the pandemic, to sell their products on JD's platform. Through our industrial chain, we help build their industrial chains."

"Meanwhile, through our platform, they can easily purchase their production raw materials. All in all, we help them run better businesses," he said.

Zhao Ping, vice-dean of the China Council for the Promotion of International Trade Academy, said: "China has entered the new development stage, and the emergence and rapid development of new-type physical enterprises is an inevitable trend."

According to the report issued by the CCPIT Academy on Thursday, new-type physical enterprises are crucial to the high-quality development of the economy, in that they are an integral part of the real economy, and serve as a new growth engine.

In addition, with their strong ability in digital empowerment, new-type physical enterprises help traditional enterprises transform and upgrade, offering a solution for the real economy to run efficiently and realize innovative development, said the report.

Specifically, according to the report, new-type physical enterprises help traditional enterprises reduce costs and increase efficiency. For example, when JD offered intelligent supply chain services, covering research and development, production, supply, sales and service, to Beijing-headquartered car manufacturer BAIC Group, the latter's server cost was reduced by 50 percent.

Meanwhile, the report said that new-type physical enterprises promote the digital transformation of the production and governance methods of the real economy.

Chen Jin, director at the China Service Industry Research Center of the University of International Business and Economics, said: "New-type physical enterprises raise the digital application in research and development, manufacturing, management and service, and promote the digital transformation of the agricultural industry, manufacturing industry, and service industry."

"New business modes, including smart farms, flexible manufacturing, customization, and intelligent logistics, have emerged," he said.

To make new-type physical enterprises better serve the real economy, Zhang Weixiong, a partner at consulting firm Ernst and Young Greater China, said: "New-type physical enterprises should think from a scientific perspective, turn technological ability to a core driving force, and transform the development of the real economy from investment-driven to innovation-driven."