Chinese new quality productive forces empowering global innovation future

By Belunn Se

The 2025 Zhongguancun Forum (ZGC Forum) Annual Conference is held in Beijing from March 27 to 31. As China's premier platform for global science and technology exchange and collaboration, this year's forum is themed "New Quality Productive Forces and Global Science and Technology Cooperation," emphasizing the importance of cutting-edge innovation in shaping the future.

This year's forum will emphasize international cooperation in technological innovation, featuring multiple global forums exploring new collaboration models between China and the Association of Southeast Asian Nations, South Korea, and Belt and Road Initiative (BRI) partner countries. With over 30 international organizations' participation, the forum aims to implement the "Open Science International Cooperation Initiative," promoting research infrastructure sharing, data exchange and deeper engagement in multinational technology projects such as BRI joint laboratories and international technology transfer centers.

ZGC Forum showcases China's technological achievements and reinforces an open and collaborative vision committed to global technological synergy and mutual benefit.

Technology and industrial innovation drive new quality productive forces

Technological innovation is the core driver of productivity advancement. In the industrial and manufacturing sectors, disruptive technological innovation occurs at five levels: theoretical breakthroughs, technological innovations, process improvements, tool advancements and factor optimization. A breakthrough in any of these areas can spark new quality productive forces, accelerating shifts in production methods and facilitating the widespread adoption of technological advancements.

Industrial revolutions have evolved from mechanization to electrification, then digitalization and now artificial intelligence (AI). In 2024, embodied AI humanoid robots appeared at the Chinese New Year Gala, while domestic large language models (LLMs) like DeepSeek and AI agent Manus gained global attention. The animated movie "Ne Zha 2," powered by digital technology, set new box office records.

Innovations in AI, quantum computing, humanoid robotics and autonomous new energy vehicles demonstrate the immense potential of new quality productive forces.

China is investing in new energy, advanced materials and emerging technologies, leveraging technological breakthroughs to transform economic drivers, enhance resource efficiency and upgrade industries, fueling high-quality development.

Traditional productivity growth relies on capital investment, labor expansion and resource extraction. In contrast, new quality productive forces are driven by technological breakthroughs, optimized production factors and industrial upgrading, and they are characterized by a significant increase in total factor productivity (TFP).

It encompasses not only technological and business model innovations but also advancements in management and institutional frameworks, fostering sustainable economic growth through technological progress and resource optimization.

New quality productive forces break away from conventional growth models, which are distinguished by high technology, high efficiency and high quality. It aligns with China's modernization efforts while offering insights for global technological innovation.

China's industrial system provides a solid foundation for innovation

China boasts the world's most comprehensive industrial system with outstanding supply chain capabilities. Since 2019, China has been the only country encompassing all industrial categories defined by the United Nations. China's manufacturing sector has led the world for 15 consecutive years, contributing over one-quarter of the country's GDP. This solid industrial foundation and expansive application scenarios provide strong support for future industrial advancements.

In 2024, China's total research and development (R&D) expenditure reached 3.6 trillion Chinese yuan ($494.69 billion), up 8.3 percent year on year, maintaining its position as the world's second-largest R&D investor.

China's talent pool is another major advantage. It has over 200 million skilled professionals, including more than 60 million high-skilled workers, accounting for 30 percent of the workforce. Additionally, China's vast consumer market provides strong demand for innovation, with total retail sales reaching 48.8 trillion yuan in 2024, up 3.5 percent year on year.

Innovation follows no fixed model, especially in frontier technology fields with inherent uncertainty and randomness. As key drivers of technological breakthroughs, businesses serve as both the origin of groundbreaking technologies and catalysts for industrial transformation. Establishing a collaborative innovation ecosystem is essential to facilitating the efficient flow of technology, talent and capital, accelerating the commercialization of scientific advancements and seamlessly integrating innovation and industrial chains to foster new quality productive forces.

China's new quality productive forces advancements are deeply embedded in global industrial chains. It offers cutting-edge manufacturing, clean energy solutions and intelligent networks while helping developing nations upgrade their technological capabilities and accelerate green transitions.

Beyond shaping markets, technological innovation enhances production efficiency, reduces costs, and strengthens corporate competitiveness. Furthermore, new quality productive forces foster cross-border collaboration, promoting supply chain synergy and global value chain restructuring.

Sharing technological benefits

Technological revolutions and international competition are deeply intertwined today, with high-tech fields becoming the front line of global rivalry. In response to external technological blockades, China remains steadfast in breaking through critical technological barriers, inspiring confidence in technological progress among developing nations.

As cutting-edge fields like AI and quantum technology rapidly evolve, international collaboration and open sharing are more crucial than ever. China remains committed to open innovation and global tech governance solutions despite certain nations imposing technological restrictions and advocating for decoupling.

China has introduced the Global AI Governance Initiative, guiding AI toward advancing human civilization. The Global Data Security Initiative promotes fair and inclusive digital governance. The International Science and Technology Cooperation Initiative upholds the belief that "science knows no borders and should benefit all humanity," fostering global technological partnerships.

As Chinese President Xi Jinping stated, "Scientific achievements should benefit all of humanity, rather than be used as a tool to suppress other nations' development." China's push for technological innovation and ambition to become a leading tech power are not about seeking global technological dominance but rather supporting China's modernization while injecting strong momentum into global development.

Belunn Se, a special commentator on current affairs for CGTN, is a senior industry observer based in Shenzhen, China.