Editor’s Note:

First put forward by Xi in his inspection tour of northeast China’s Heilongjiang Province in September 2023, the term was highlighted again at the Central Economic Work Conference in December, and became the subject of the first group study session held by the Political Bureau of the Communist Party of China (CPC) Central Committee this year.

The incorporation of new quality productive forces into the Chinese government’s work report, and being listed as the top priority among the ten major tasks for 2024, with specific deployment, highlights China’s emphasis and sense of urgency in accelerating the development of new quality productive forces. This signifies China’s continuous efforts in fostering new growth drivers and new strengths to advance high-quality development.

Xi Jinping on New Quality Productive Forces

It is necessary to foster strategic emerging industries including new energy, new materials, advanced manufacturing and electronic information, and nurture industries of the future, in a bid to create new productivity boosters and new growth impetus.  

-- Excerpt from Xi's remarks while presiding over a meeting on promoting the full revitalization of northeast China in the new era on September 7, 2023 

We should promote industrial innovation through sci-tech innovation, and in particular forging new industries, models and impetus with disruptive and cutting-edge technologies. 

--Excerpt from Xi’s important speech at the annual Central Economic Work Conference in Beijing, capital of China, on December 12, 2023 

New quality productive forces are driven by revolutionary technological breakthroughs, innovative allocation of production factors, and deep industrial transformation and upgrading, taking the improvement of workers, means of labor, subjects of labor and their optimal combinations as its basic connotation, and a substantial increase in total factor productivity as its core hallmark. 

--Excerpt from Xi's remarks while presiding over a group study session of the Political Bureau of the CPC Central Committee on January 31, 2024 

Localities should take into account their own resource endowment, industrial foundation and scientific research conditions in promoting the development of new industries, models and growth drivers in a selective manner, and use new technologies to transform and upgrade traditional sectors into high-end, intelligent and green industries. 

-- Excerpt from Xi’s speech while participating in a deliberation with fellow lawmakers from Jiangsu Province during the Second Session of the 14th NPC, on March 5, 2024 

ABCs about New Quality Productive Forces

What does it mean? 

With innovation playing the leading role, new quality productive forces mean advanced productivity that is freed from traditional economic growth models and productivity development paths. It features high technology, high efficiency and high quality, and comes in line with the new development philosophy. 

What are the drivers, basic connotation and core hallmark? 

Drivers: revolutionary technological breakthroughs, innovative allocation of production factors, and deep industrial transformation and upgrading 

Basic connotation: the improvement of workers, means of labor, subjects of labor and their optimal combinations 

Core hallmark: a substantial increase in total factor productivity 

Marked by innovation, and with high quality as the key, new quality productive forces are advanced productivity in essence. 

Why it matters? 

Promoting high-quality development has become the consensus and conscious action of the whole Party and society in the new era. There are still many factors restricting high-quality development, which must be guided by a new productivity theory. 

How to accelerate the development of new quality productive forces? 

● To continue to well leverage innovation to speed up the development of new quality productive forces 

--Sci-tech innovation can generate new industries, new models and new growth drivers, which are the core elements of the development of new quality productive forces 

--Strengthen sci-tech innovation, especially original and disruptive innovation 

--Sci-tech innovations should be applied to specific industries and industrial chains in a timely manner 

--Expedite the green transformation of growth models and contribute to carbon peaking and carbon neutrality 

● To further deepen reform in an all-round way and form a new type of relations of production appropriate to the development of new quality productive forces 

--Deepen reforms of the economic system and the science and technology management system, work hard to remove bottlenecks that hinder the development of new quality productive forces 

--Further deepen reform in an all-round way and form a new type of relations of production appropriate to the development of new quality productive forces 

● To smooth the virtuous cycle of education, science and technology as well as talent in accordance with the requirement of developing new quality productive forces, and improve the mechanism of talent training, introduction, use and flow