China’s push for new quality productive forces transforming it into innovation powerhouse
China’s sharpened focus on pursuing integrated advancements in technological and industrial innovation showcases its determination to translate scientific breakthroughs into real-world applications, and such a strategy will help it transform into a global innovation powerhouse and maintain its edge amid competition and uncertainties, experts and company executives said.
Highlighting that bridging the gap between laboratories and production lines is a key pillar of China’s push for new quality productive forces, they said this emphasizes not only breakthroughs in frontier technologies but also that scientific achievements fuel economic vitality.
As 2025 marks the last year of China’s 14th Five-Year Plan (2021-25), the nation’s emphasis on nurturing sectors such as 6G, quantum computing, robotics, and artificial intelligence will also help it establish a beachhead in these future industries for the 15th Five-Year Plan (2026-30) period, they added.
President Xi Jinping underlined the need for Jiangsu province, one of China’s economic powerhouses, to lead the integration of sci-tech and industrial innovation when he took part in a deliberation with his fellow lawmakers during the third session of the 14th National People’s Congress, China’s top legislature, earlier this month.
The Government Work Report, unveiled on March 5, stated: “We should pursue integrated advancements in technological and industrial innovation, press ahead with new industrialization, expand and strengthen advanced manufacturing, and vigorously develop modern services. This will enable us to build up the momentum of new growth drivers while upgrading and reviving traditional ones.”
Pan Jiaofeng, a deputy to the 14th NPC and president of the Institutes of Science and Development, which is part of the Chinese Academy of Sciences, said economically developed provinces such as Jiangsu should seize the opportunity from a new round of technological revolution and industrial transformation.
“By relying on a solid industrial foundation, they should promote the renewal and upgrade of traditional industries, cultivate new momentum, take the lead in shaping new development advantages, and drive more regions to catch up,” he said.
To integrate technological innovation and industrial innovation, Pan said it is necessary to build platforms, improve institutional mechanisms, strengthen the position of enterprises as the main innovators, and seamlessly connect the innovation and the industrial chains.
Lei Jun, a deputy to the 14th NPC and chairman of Xiaomi Corp, said: “We are full of confidence in developing new quality productive forces and remain unwavering in driving high-quality development through innovation. This year’s Government Work Report consistently emphasizes ‘innovation’ and ‘high-quality development’, which deeply inspires me as a private entrepreneur in the tech sector and reinforces my confidence in achieving high-quality growth.”
“I am moved by the nation’s resolve to enhance the overall efficiency of its innovation system. One line from the report particularly resonates with me — promoting the spirit of scientists and fostering an innovation environment that encourages exploration and tolerates failure. This is the greatest encouragement for scientific research and entrepreneurial innovation,” Lei said.
“Additionally, the report also emphasizes the need to leverage the leading role of sci-tech enterprises to advance high-level self-reliance and self-improvement in technology, which reminds me of the immense responsibility we shoulder,” he added.
The senior executive said Xiaomi, which has invested 105 billion yuan ($14 billion) in research and development over the past five years, will continue to pursue breakthroughs in more crucial technologies and apply them to products.
Jin Li, vice-president of the Southern University of Science and Technology and a member of the National Committee of the Chinese People’s Political Consultative Conference, said, “Relying on the aggregation of scientific and technological resources, China is well-placed to coordinate the comprehensive reform and development of the education, science, and technology talent system, so as to unleash a powerful momentum for scientific and technological innovation to lead high-quality development.”
In 2024, China’s total R&D expenditure reached 3.6 trillion yuan, an 8 percent increase from the previous year. The proportion of basic research funding within the total R&D budget hit 6.91 percent, and there were 14 high-value invention patents per 10,000 people, data from the government work report showed.
These figures reflect China’s commitment to increasing its R&D intensity, which stood at 2.68 percent in 2024, surpassing the average level of European Union countries, the National Bureau of Statistics said.
Meanwhile, China possesses the most complete and largest industrial system globally. It ranks first globally in the production of over 220 industrial products and is the only country in the world that has all industrial categories in the United Nations’ industrial classification, according to the Ministry of Industry and Information Technology.
Zhang Li, a deputy to the 14th NPC and president of the China Center for Information Industry Development, said, “Boasting such a strong, complete industrial system, China provides rich application scenarios and enormous market potential for technological innovation, as well as solid support for the development of emerging industries and future industries.”
According to him, by combining new ideas and technologies with China’s robust manufacturing capabilities and vast market potential, the nation can better harness its strengths.
Industrial innovation must remain rooted in the real economy, emphasizing both the transformation and upgrading of traditional industries and the development of strategic emerging industries and future sectors, Zhang said.
“China’s economy has historically relied on the real economy, and it is through this foundation that it will continue to progress,” he added.
According to the Government Work Report, China “will establish a mechanism to increase funding for industries of the future and foster industries such as biomanufacturing, quantum technology, embodied AI, and 6G technology”.
Guo Guoping, a deputy to the 14th NPC and deputy director of the Key Lab of Quantum Information at the Chinese Academy of Sciences, said he was deeply impressed by China’s emphasis on nurturing strategic future technologies such as quantum computing.
“China has become the third country in the world capable of delivering complete quantum computers, positioning itself in the global first tier of quantum computing research. But challenges remain in (some) areas,” he said.
Guo stressed the need for increased investment in basic research, which he describes as the foundation of high-level scientific and technological independence. He advocates for leveraging China’s unique advantages in mobilizing resources to tackle key core technologies and advance frontier and disruptive technologies.
“We need to build a robust industrial ecosystem that can support the transition from laboratory prototypes to commercial products,” he added.
Qiao Hong, a member of the National Committee of CPPCC and an academician at the Chinese Academy of Sciences, said China has made rapid progress in robotics and artificial intelligence.
“Over the past three years, China has accounted for more than half of the global installations of industrial robots, and its lunar exploration robots have successfully returned lunar soil samples,” Qiao said.
She pointed to the development of humanoid robots as a particularly promising area, with China establishing a core technological foundation for large-scale, cost-effective production of high-performance robotic systems.
Qiao’s insights underscore the importance of integrating AI and robotics into traditional industries to enhance efficiency and productivity.
By leveraging digital technologies such as the internet of things, big data, and cloud computing, companies like Unitree Robotics are transforming their operations and creating more efficient supply chains. This approach not only improves competitiveness but also contributes to the broader goal of developing new quality productive forces.
Zhejiang province is a bellwether for China’s regional innovation strategies.
As a manufacturing and e-commerce hub, Zhejiang has channeled its entrepreneurial culture into tech innovation, and startups like DeepSeek exemplify Zhejiang’s knack for aligning private-sector agility with national goals, experts said.
Gao Yingzhong, an NPC deputy and head of the Department of Science and Technology of Zhejiang province, said the province added 18 national key labs last year, bringing the total to 38, and it achieved 110 major scientific and technological achievements and received 30 national science and technology awards.
Denis Depoux, global managing director of market consultancy Roland Berger, said China is making a strategic shift toward modern and sustainable economic growth.
“The China stories of the past — low labor costs, relatively few added-value products, massive exports, and massive fixed-asset investments in infrastructure building and fueling the economy — are gone,” he said. “The new China story relies on factors such as advanced manufacturing, decarbonization, growing innovation prowess, and the services economy.”
The evidence is already clear.
China dominates the Global Lighthouse Network list, a project launched by the World Economic Forum in collaboration with consultancy McKinsey & Company to track advanced manufacturing plants, known as lighthouse factories, that apply state-of-the-art digital technologies.
To date, China is home to 79 lighthouse factories, the highest number of any country and accounting for more than one-third of the world’s total.
China also ranked 11th in the 2024 Global Innovation Index, solidifying its status as one of the fastest-improving economies, according to the World Intellectual Property Organization.
As the nurturing of new quality productive forces gains traction in China, “In the future, we may see more similar patterns in industries such as healthcare, new materials, and AI, and these efforts will provide big opportunities for foreign companies,” Depoux added.
Ma Jun, senior vice-president of Volvo Group and president of Volvo (China) Investment Co Ltd, said, “We see great potential in China’s AI growth. With its vast market and diverse application scenarios, China provides a unique space for AI innovation. I look forward to seeing more creative AI solutions in the transport and infrastructure sectors, to help reduce logistics costs further and support sustainable development in China and globally.”
According to her, the Swedish company aims to drive prosperity through sustainable transport and infrastructure solutions, which is in line with China’s top agenda for nurturing new quality productive forces.
