Innovation that promotes high-quality development

Innovation: Targeted measures could help revitalize the tech sector

Economists and executives say China’s push for multifaceted technological innovation will accelerate productivity growth and create more emerging industries, thus cementing the country’s high-quality development momentum. .

They said that after China recorded an average annual growth rate of 4.5% from 2020 to 2022, it is projected to outpace global growth of about 2% over the same period, while other major economies such as the United States and the eurozone He commented that it outpaced growth.

China’s economy, which has shown such resilience despite the COVID-19 outbreak, has shown innovation to the country’s modernization under the guidance of Xi Jinping Thought on a socialist economy with Chinese characteristics for a new era. The average annual growth rate to 2035 is expected to exceed 4% to support the promotion of industrialization. .

“If we can fully leverage[the Chinese]spirit of entrepreneurship and innovation, it will be a long-term economic success for China,” said Wang Cheng, chief economist for Asia Pacific at the US-based Vanguard Investment Strategy Group. The outlook is expected to be positive.”

Wang said innovation is very important as the country’s population is expected to decline in the next few years. This means that growth momentum will come from improved labor productivity, which relies on innovation as its primary driver.

As China is expected to gradually weather the turmoil caused by COVID-19, the focus will be on transforming a modern socialist country into a multi-faceted one, while grappling with growth challenges such as demographic change and real economic growth. The journey to build has moved on to how to boost growth in the new year. A slowdown in real estate and a tougher external environment.

A landmark report released at the opening ceremony of the 20th National Congress of the Communist Party of China in October emphasized that innovation is central to China’s push for modernization and a key driver of growth. .

Lan Zongmin, a researcher at the State Council Development Research Center, citing the report, said that Xi’s economic thought has become an important guideline for the country’s innovation-led development, and is the decisive factor in technological innovation and methodology. He stressed the importance of Promote innovation.

Experts say this year will accelerate innovation, including strengthening macroeconomic policy coordination, revitalizing private enterprises and promoting international technology exchanges, in order to get off to a good start on the new journey to modernization of the country. Policy efforts to do so will be strengthened on multiple fronts.

Vanguard’s Wang said policymakers are expected to ease macroeconomic policies in a targeted manner this year, spurring tech and emerging sectors, while launching broad-based and large-scale stimulus measures. said to be cautious about He “should spend the policy space that can produce the greatest impact.”

In a sign that policymakers are focusing on structural stimulus, China’s central bank, the People’s Bank of China, on Sunday released loans to boost carbon cuts and ensure logistical stability. He said he would expand the use of the tool.

The Central Economic Work Conference, which ended in December, called for stronger support from financial institutions for key areas such as innovation, emphasizing the key role of firms in innovation.

Platform companies could enjoy favorable financing terms for R&D investment and overseas expansion as China ramps up its efforts to boost its companies’ innovative capabilities, said Deutsche Bank’s Greater China macro strategy chief. said Mr. Liu Li’nan, research notes.

Lin Jianhai, vice chairman of the International Financial Forum and former executive director of the International Monetary Fund, stressed the importance of leveling the playing field between state-owned and private companies. and application.

As one of the priorities of innovation-driven development, including technological progress, digital transformation and green economy, experts say, the driving force of innovation will grow in China in the coming years. It will give a great impetus to modernization.

Hu Yifang, head of Asia-Pacific macroeconomics at UBS Global Wealth Management, said investments in high-tech areas such as microchips, new materials, high-end equipment, robotics and artificial intelligence will be resilient this year. Growth is likely to record, with China’s annual GDP growth recovering from 3% in 2022 to around 5%.

According to the National Bureau of Statistics, investment in high-tech manufacturing will expand by 18.9% in 2022, outpacing total fixed asset investment growth of 5.1%.

Deutsche Bank’s Liu said digital transformation will remain a strong driver of China’s growth over the next decade, saying that if the digital economy expands by an average of 10% annually, the digital economy’s share of the country’s GDP will increase by 2025. It added that it could increase to 45% by 2020. .

Zhang Ying, Managing Director of Dassault Systemes Greater China, said French industrial software company Dassault Systemes Greater China is keen to expand its investment in China as Chinese companies accelerate their digital transformation. He said he is strengthening his commitment.