New Productive Forces To Boost High-Quality Development

The concept of new productive forces has captured the attention of various industries, sparking widespread discussions.

“This term doesn’t just signify advancements in technology but also involves optimizing the use of resources, a Chinese scholar said”.

While China has made significant strides and achieved global leadership in certain areas, there remains considerable potential for development in others, Chen Dengke, an associate professor at the School of Economics, Fudan University, told Xinhua in an interview.

“In the realm of new productive forces, China’s rapid progress in digital technology and artificial intelligence is injecting fresh momentum into the high-quality development of its economy,” Chen said.

The current scale of China’s digital economy is approaching 60 trillion yuan (around 8.45 trillion U.S. dollars), accounting for more than 40 percent of total GDP, according to Chen.

Basic research and development (R&D) serves as the fundamental driving force behind emerging technologies and the advancement of new productive forces.

However, a notable gap persists between China and developed countries in this aspect.

Chen said that even though China’s total R&D spending exceeded 3 trillion yuan in 2022, securing the second position globally, there is a need to optimize the spending structure.

Notably, less than 7 percent of the total R&D expenditure was allocated to basic research, a proportion that is significantly lower than that of the United States and some European countries.

“New productive forces will significantly influence people’s production and lifestyle, presenting both opportunities and challenges,” Chen said.

On the positive side, the development of new productive forces, marked by groundbreaking technologies, will boost enterprise and labor productivity.

“This can lead to increased profits for businesses and higher wages”, Chen said.

“Moreover, new productive forces will free more people from physical labor, resulting in a rise in workers engaged in intellectual pursuits”, he added.

Furthermore, the evolution of new productive forces will spawn novel business models, offering more opportunities for entrepreneurs and investors with entrepreneurial spirit and substantial human capital.

“The introduction of new products and services will enhance people’s quality of life and their sense of happiness”, the scholar said.

However, the development of new productive forces will have some impact on traditional industries, Chen said, noting that such traditional industry enterprises should adapt to the evolving direction of new productive forces through transformation, upgrading, and skill improvement.

Chinese news agency/Jamiu Ogunshe