New Quality Productive Forces: A Primary Driver of High-Quality Development

New Quality Productive Forces: A Primary Driver of High-Quality Development*

January 31, 2024

Today we gather here for the 11th group study session of the Political Bureau of the 20th CPC Central Committee. Steadily advancing high-quality development is our topic, and our goals are to implement the decisions and plans made at our Party’s 20th National Congress and the Central Conference on Economic Work, to review the achievements of high-quality development in the new era, to analyze prominent problems and discuss remedies, and to facilitate new progress and breakthroughs.

Since our Party’s 18th National Congress in 2012, we have fully applied the new development philosophy, gained a deeper understanding of the present development stage and the laws governing economic development, and put more emphasis on the quality of development. The report to the 19th CPC National Congress states that our economy is now transitioning from rapid growth to high-quality development, and the report to the 20th CPC National Congress emphasizes that to build a modern socialist country, we must first and foremost pursue high-quality development. Since we entered the new era, the Party Central Committee has issued a series of major decisions and plans which facilitate a consensus in the whole Party and society on high-quality development and subsequent actions. High-quality development has since become a key theme. In recent years, China has achieved fruitful results in scientific and technological innovation, bearing witness to our growing capacity in innovation-driven development. Development between urban and rural areas and between regions is much more coordinated and better balanced. Deeper reform and wider opening up has boosted growth momentum and vitality. The green, low-carbon transformation has made commendable headway, and the growth model is changing at a faster pace. All this indicates our marked progress in high-quality development.

Yet there remain a large number of factors restricting high-quality development. Externally, change on a scale unseen in a century is accelerating on all fronts. Internally, we remain dependent on others in core technologies in certain key fields, and considerable gaps still exist in development and income levels between urban and rural areas and between regions, hindering high-quality economic and social development. Judging from their performance, it is clear that some officials do not yet have a thorough understanding of high-quality development. Whenever problems arise, they habitually revert to the old model of extensive growth and inefficient development. Some find it hard to cast aside outdated thinking; they claim to be seeking high-quality development, but in effect are clinging to the old path. Some are lacking in ability, and have no idea how to advance high-quality development amid new domestic and international changes and challenges. These problems call for our attention and action. We must fully, accurately and faithfully apply the new development philosophy. To lay firm foundations for high-quality development, we should complete the strategic tasks of building a modern economic system, achieving greater strength and self-reliance in science and technology, fostering the new development dynamic, coordinating deeper reform and high-standard opening up, and coordinating high-quality development and a high level of security. At the same time, we will improve the evaluation and appraisal system for high-quality development.

Developing new quality productive forces is essential to high-quality development, and also a primary driver. Here, I would like to share some of my thoughts on this issue.

Beginning last July, I visited several locations in Sichuan, Heilongjiang, Zhejiang, and Guangxi. During these trips, I spoke of integrating resources for scientific and technological innovation, developing strategic emerging industries and future industries, and moving faster to develop new quality productive forces. At the Central Conference on Economic Work in mid-December, I suggested that in order to develop new quality productive forces, we should promote industrial innovation through scientific and technological innovation, and in particular, that we should create new industries, business models, and growth drivers by applying disruptive and cutting-edge technologies. I proposed the concept of developing new quality productive forces and made this a major priority, because productive forces are the fundamental force driving human society forward, and the ultimate source of all social change and political reform. High-quality development needs guidance from new theories on productive forces. Born of practice, new quality productive forces have shown great strength in advancing and supporting high-quality development. This in turn calls for theoretical research to sum up our experience, so that it may guide future development.

What are new quality productive forces and how can they be developed? I have given much thought to this topic and some associated academic research findings. In brief, new quality productive forces are advanced productive forces led by innovation. Breaking free from the traditional economic growth model and development path, they are characterized by high technology, high efficiency, and high quality, and they align very well with the new development philosophy. They are a result of revolutionary breakthroughs in technology, innovative allocation of production factors, and substantive transformation and upgrading of industry. At their core are marked improvements in labor, means of labor, and subjects of labor, and the optimal combination of these. Prominent increases in total factor productivity are their hallmark, with innovation, quality, and advanced productive forces as the keywords.

Innovation defines new quality productive forces. It occurs in technology, creates new business forms and models, and inspires management and system building. We must continue to spur innovation to achieve faster development of new quality productive forces.

First, advancing innovation in science and technology. Revolutionary breakthroughs in technology are the primary driver for the formation of new quality productive forces. Technological innovation acts as a core factor in developing new quality productive forces, as it gives rise to new industries, business models, and growth drivers. This means we must strengthen technological innovation, with the focus on original and disruptive technologies, and increase strength and self-reliance in science and technology as quickly as possible. We must fully implement our strategies for invigorating China through science and education, building a talent-strong country, and pursuing innovation-driven development. We should target global sci-tech frontiers, serve the economy, meet major national needs, and strive to improve people’s lives and health. We should boost our strength in strategic science and technology, and advance well-planned original and basic research in the service of national strategies. We should focus on the needs of national strategies and economic and social development, and target key generic technologies, cutting-edge frontier technologies, modern engineering technologies, and disruptive technologies. Relying on our new system for mobilizing resources nationwide, we will pursue breakthroughs in core technologies in key fields, bring forth results from innovation in an array of original and disruptive technologies, and foster new momentum in developing new quality productive forces.

Second, advancing industrial innovation through scientific and technological innovation. When research results translate into productive forces, they facilitate the creation of new industries and boost in-depth industrial transformation and upgrading. This is why we should ensure the timely application of the fruits of innovation in industry and industrial chains, in order to upgrade traditional industries, foster and grow emerging industries, plan for future industries, and improve the modern industrial system. We should focus on the development of new quality productive forces in planning industrial chains, to help weaker industries to remedy deficiencies, stronger industries to extend their reach, traditional industries to upgrade production chains, and emerging industries to build up new industrial chains. Industrial and supply chains should be more resilient and more secure, to ensure that our industrial system remains in our own hands, independent, safe, and reliable. Innovation in science, technology and industry should focus on advancing new industrialization and boosting China’s strength in manufacturing, product quality, cyberspace, digital development, and other strategic tasks. We will redouble our efforts in developing the digital economy, further integrate it with the real economy, and build internationally competitive digital industry clusters. To build up China’s strength in agriculture, we will strengthen scientific innovation and application in the seed industry and agricultural machinery, to advance modern agriculture with new technologies and safeguard national food security.

Third, advancing innovation in the development model. Green growth should be a defining feature of high-quality development, and new quality productive forces are intrinsically green. We must speed up the green transformation of the development model, to achieve peak carbon emissions by 2030 and carbon neutrality by 2060. We must uphold and act on the principle that lucid waters and lush mountains are invaluable assets, never wavering from the path of green development that gives priority to eco-environmental conservation. To build a green, low-carbon and circular economy, we will accelerate scientific innovation, promote and apply advanced green technology, grow green manufacturing industries, develop green services, expand green energy, and cultivate green, low-carbon industrial and supply chains. We will continue to improve the economic policy toolbox in support of green and low-carbon development, leverage the leading role of green finance, and build highly efficient eco-friendly and green industry clusters. We will also increase efforts to promote green and healthy lifestyles across society.

Fourth, advancing innovation in institutions and mechanisms. The relations of production must be compatible with the need to develop productive forces. To develop new quality productive forces, we must advance reform on all fronts and form compatible new-type relations of production. New quality productive forces need forward-looking planning and guidance from the government, support from sound policies, regulation by market mechanisms, and innovation on the part of businesses and other micro entities. They are jointly fostered and stimulated by the “visible hand” of the government and the “invisible hand” of the market. Therefore, we must drive deeper reform in our economic, scientific, and technological systems, to remove obstacles hindering the development of new quality productive forces. We should build a robust market system, develop new ways of allocating production factors, and channel all types of advanced high-quality production factors into developing new quality productive forces. We should also expand high-standard opening up to create a favorable international environment for developing new quality productive forces.

Fifth, advancing innovation in the institutions and mechanisms for developing talent. To meet the needs of new quality productive forces, we should promote a positive interplay between education, talent development, and science and technology, and improve mechanisms for the cultivation, introduction, utilization, and sound flow of talent. We should follow new trends in science and technology to optimize the structure of disciplines and the talent cultivation models at institutions of higher learning, and foster the talent most urgently required for developing new quality productive forces and facilitating high-quality development. We will step up efforts to cultivate science strategists, first-class scientists and innovation teams, outstanding engineers, and master technicians, while strengthening skills training for workers, to improve the quality of the talent pool. We will improve the mechanism for production factors to partake in income distribution, and invigorate factors such as labor, knowledge, technology, management, capital and data. We will work to increase the market value of knowledge, technology and talent, and to create a sound environment that is tolerant of failure and encourages innovation.

* Speech at the 11th group study session of the Political Bureau of the 20th CPC Central Committee.

(Not to be republished for any commercial or other purposes.)