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Innovation serves as new growth engine of Chinese economy

 

 

By Bai Tianliang from People’s Daily

 

China delivered better-than-expected economic performances at the beginning of 2019, in which innovation has replaced input as the major engine driving the country’s growth, injecting strong power for the country to advance against storms.

 

Innovation is driving high-quality development of the Chinese economy. Emerging industries, whose added value growth is leading all industries above designated size, are rising as the fastest-growing and the most vibrant sector of the Chinese economic system.

 

Integrating online and offline businesses and combining traditional industries with digital economy, China is now an important source of the world that nurtures and exports new business models.

 

In one minute, four visitors can experience the beauty of the Mogao Caves via artificial intelligence technology; in one minute, Zhonguancun Science Park generates revenue of 10.09 million yuan ($1.47 million); in one minute, Tianhe-3 supercomputer completes six quintillion calculations. Such achievements have won applauses from both home and abroad. At present, scientific and technological innovation is contributing over 60 percent to the growth of Chinese economy.

 

By improving the mechanism for innovation, China is seeing larger potential for economic development. Behind the emerging new drivers are a series of institutional and mechanism reforms such as streamlining administration, delegating powers, and improving regulation and services, as well as tax cuts. These reforms have created an environment where market entities want to innovate, dare to innovate and are able to innovate.

 

China implemented unprecedented tax reduction policies this May, introducing general-benefit tax cuts for micro and small enterprises and lowering general VAT level. It is cutting government powers and tightening the belts to boost innovation vitality.

 

Statistics indicated that 11 new companies were registered on average in the country every minute. It displays the country’s enthusiasm for and confidence in innovation.

 

A well-structured system for innovation will offer supports for long-term development, and individual leading technologies and industries are not able to make innovation a major engine for growth. Such system is of huge importance especially for a major country like China.

 

In this regard, apart from progress made in traditional sectors such as manufacturing, China has gained abundant experiences in cutting-edge technologies such as artificial intelligence.

 

It is not only competing with developed countries in emerging industries, but also making deployment in advance at the frontiers where countries have seldom stepped in.

 

Though weaknesses exist in Chinese technology development, China, focusing on both the present and future, still has enough gas in its tank in terms of innovation.

 

Some people believe the vast economy and the huge population would create more challenges for China’s economic transition, and some worry that the broad coverage of the country’s traditional industries may place negative impacts on the incubation and promotion of new technologies.

 

Contrary to such opinions, the new round of global technology and industry revolution is exactly complementary to China’s high-quality economic development, providing a golden opportunity for China to achieve innovation-driven development.

 

Enjoying a complete industry chain, China is leading the world in the production of over 200 major industrial products, which guarantees that innovation can be achieved in the country in a rapid manner. The vast market, largest population and strong consumption power of the country have also created a favorable environment for innovative ideas.

 

Today, mobile payment is nothing new to both urban and rural residents in China, who even wonder why it is difficult to promote such a good method in other countries.

 

Nevertheless, such innovation could not have been achieved without systematic supports such as cloud computing, big data, new generation of mobile communication, Internet of Things, and high-efficient transportation and industrial systems.

 

The interaction of multiple innovative factors, as well as the mutual assistance among different industries have fostered China’s advantages in innovation-driven development, and are bound to lead the high-quality development of the Chinese economy.

 

A country’s economic confidence lies not only in the size of the economy, but also in the long-term development prospects.

 

China’s economic confidence is indicated by the fact that the country has a complete innovation system, powerful impetus for innovation and strong enthusiasm for innovation. These factors are driving Chinese economy to yield more outcomes, and strive for higher-quality growth and sustainable development.

 

Chinese economy could stand to any test on a firm ground with full confidence, however the external environment may change, and despite the fact that the country’s GDP growth could experience fluctuations and its industries may have prosperity and recession.

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