Published on : 29/05/2024
"Chinese path to modernisation", "new quality productive forces", "high-quality development"... In recent years, we've heard a lot about these terms, but what do they actually mean?
Our "National Policy Literacy" series of articles breaks down China's key national policies and concepts from 10 perspectives.
This is the second article in the "National Policy" series, introducing what exactly is "high-quality development."
High-quality development ｜ Urgent need for development in the late 70s
The term "high-quality development" has often appeared in the media in recent years, but what does it specifically mean? Can it simply be referred to as an approach that "prioritises quality over quantity" ?
Before discussing high-quality development, let's take a look back to the beginning of the Reform and Opening-up in the late 70s.
At that time, China's economic development was lagging far behind the world, with supply shortages, and the majority of people had a low standard of living.
What was desperately needed was high-speed and large-scale development. It can be said that the method of development in that stage of China was to solve the problem of "quantity", which was much more important and urgent than "quality".
For a long time after that, China's economy grew rapidly under this orientation, with a massive increase in GDP and comprehensive national strength.
By 2010, China's GDP had surpassed Germany and Japan, becoming the second-largest economy only behind the U.S., and the standard of living of the people also reached a new level.
High-quality development｜A new development stage needs a new strategy
However, with the changes in China's own development factors, including rising labour and resource costs and changes in the market environment, the development approach that prioritises quantity and speed can no longer support the economy to grow rapidly as it did in the past as we enter the second decade of the 21st century.
The labour-intensive industries of clothing, toys, and furniture are all examples.
Furthermore, the "GDP heroism" and extensive high-speed economic development also accumulate risks in various fields, such as increasing wealth gap, excessive resource consumption, and environmental destruction, which are not conducive to long-term development goals.
Therefore, entering a new development stage, China needs a new strategy and development approach. As we all know now, it is "high-quality development", which is also part of Xi's economic thoughts.
In the political report of the 19th National Congress of the Communist Party of China (CPC) in 2017, Xi Jinping clearly stated that the Chinese economy has moved from a stage of rapid growth to a stage of high-quality development.
High-quality development｜Focusing on changes in economic structure and development dynamics
During the 20th National Congress of the CPC in 2022 and the Two Sessions in 2023, Xi Jinping reinforced that "high-quality development is the primary task for comprehensively building a modern socialist country".
Knowing the context, it will be much easier to understand high-quality development.
High-quality development, in the words of scholars, means focusing on new changes in economic structure and development dynamics, implementing innovation-driven development strategies, and accelerating quality transformation, efficiency change, and power transformation.
Its fundamental expectations are less input of production factors, high resource allocation efficiency, low cost of environmental resource, and good economic and social benefits. Its focal point is on "quality".
High-quality development｜Effective improvement of quality and reasonable growth of quantity
Xi Jinping said at the Central Economic Work Conference in 2017 that high-quality development is the shift from "whether or not" to "good or not", which should be the highest level of generalisation for this term.
It should be noted that high-quality development cannot be simply defined as "prioritising quality over quantity", because its characteristics should be the "effective improvement of economic quality" with "reasonable growth of economic quantity".
The difference between rapid growth and rational growth is not hard to understand.
To achieve high-quality development, generally speaking, it has to follow a path of high feasibility and effectiveness, and a high level of technological self-reliance can be seen as the strategic guide for promoting high-quality development.
Read More: How does China promote energy revolution to deal with climate change?
High-quality development｜Technology drives industrial innovation
High-quality development requires significant breakthrough progress in technological innovation. China must change its role from being a "follower" to a "parallel runner" and a "leader".
Following this, technological innovation will drive industry innovation, creating new, high-quality economic growth points.
What industries will be key areas of high-quality development?
New information technology and artificial intelligence (AI), biotechnology, new energy, intelligent connected vehicles, and aerospace, etc., are all examples that we might find quite familiar with.
In addition, the authorities propose to construct a high-standard socialist market economic, build a modernised industrial system, fully promote rural revitalisation, coordinated regional development and high-standard opening up, all of which are the focus points for high-quality development.
At last, it should also be noted that the Chinese authorities have continually emphasised that high-quality development is not only about economy, but also involves all aspects of social development.
The ultimate purpose of pursuing high-quality development is to bring stability and harmony to the whole society and to better meet the growing needs of the people for a better life.
