New drivers expected to propel China’s future economic growth

By Xinhua
On 19 July 2023 at 08:42

New drivers are expected to support China’s future economic growth, guest speakers told the China Economic Roundtable hosted by Xinhua News Agency.

Fu Linghui, spokesperson of the National Bureau of Statistics, pointed out that developing new drivers should focus not only on emerging industries but also on the transformation of traditional industries.

"The new development opportunities brought by new drivers have broad prospects," Fu said. He also suggested enterprises pay attention to three key aspects.

The first is the growth opportunities of industrial upgrading. With more demand for high-quality supplies, the transformation from low-end manufacturing to mid-to-high-end manufacturing holds tremendous potential.

The second is the driving role of digital economy development. The trend of digital integration on the production side brings new opportunities for digital transformation.

The third is the opportunities generated by green transformation, Fu said.

In particular, new energy vehicles (NEVs) have become a highlight in China’s economic development in the past two years. The production and sales of NEVs in China exceeded 3 million units in the first half of this year, with a growth rate of over 30 percent.

The outstanding performance of China’s NEV industry proves the effectiveness of key industrial policies implemented in recent years, said Li Hui, a senior official with the National Development and Reform Commission (NDRC).

The next steps are to further improve supporting measures, guide NEV companies to seize development opportunities, enhance industrial innovation capabilities, strengthen openness, exchanges and cooperation, and sharpen the core competitiveness of the industry, she said.

"We believe that more industries will experience this maturing and transformative process, and they will reshape the new growth momentum of China’s economic development in the future," Li noted.

A State Council executive meeting was held on June 16. Policies mulled at the meeting centered on four aspects, namely improving macroeconomic policies, expanding effective demand, strengthening and optimizing the real economy, and preventing and resolving risks in key fields.

"These policies take into account both supply and demand, present and future. They coordinate development and security, demonstrating the pertinency and feasibility of the policies," Li said.

The NDRC will push the introduction of relevant measures, ensuring that existing policies and new policies work together. Based on thorough research, the commission will continuously enrich the policy toolbox and ensure the availability, usability, and effectiveness of such tools when needed, she added.

Liu Yuanchun, president of Shanghai University of Finance and Economics, said it is necessary to integrate short-term policies, medium-term structural policies and long-term institutional and systemic reforms.

He shared some advice for economic development in H2, such as repositioning short-term fiscal and monetary policies, introducing social policies, continuing strategic industrial policies and implementing a series of measures to deepen reforms.

Li said that the NDRC will launch measures to advance reforms so as to cultivate high-quality business entities and create a more optimized and fairer market competition environment, build a high-standard market, better establish a unified national market and further improve the market access system.

"China’s economy has been growing stronger and more robust while facing a series of risks and challenges, and the Chinese government has gained rich experience in macro control during this process," she added. Enditem

Photo shows a scene at the China Economic Roundtable in Beijing, capital of China. China Economic Roundtable is an all-media talk platform launched by Xinhua News Agency, with the first episode featuring the Chinese economy. (Xinhua/Jin Liangkuai)