Sci-tech innovation set as top priority for China's economy in 2024

Innovations in science and technology has been listed as the top priority for China's economic work in 2024, according to the Central Economic Work Conference that concluded on Tuesday.

The conference put "building a modern industrial system led by sci-tech innovations" as the most important economic work for the next year.

Such planning is different from last year's meeting, which put expanding domestic market demand as the prioritized task.

It is the first time in years that sci-tech became the top priority, according to Tian Xuan, deputy head of the PBC School of Finance, Tsinghua University.

Tian told Shanghai Securities Journal that China needs sci-tech innovations as the new driver of economic growth, but innovative enterprises often require huge investment and are bound with high risks, which don't fit into the traditional financial system.

That's why the conference said China will promote the development of venture capital and equity investment, Tian added, because these financial tools are more tolerant to failure.

This new plan will likely guide more financial resources and funds into sci-tech innovations, said Liu Xiangdong, deputy head of the Department of Macroeconomic Studies, China Center for International Economic Exchanges.

"New-quality productivity"

"We should push forward industrial innovations through sci-tech innovations," said an official report released after the conference. "Specifically, we should create new industries, new development patterns and new momentum with disruptive and cutting-edge technologies."

"We should develop new-quality productivity," the report added.

The term "new-quality productivity" was considered one of the "ten most popular terms of 2023" by Yaowen Jiaozi, a magazine focused on the use of the Chinese language.

According to China News Service, many people consider new-quality productivity as an innovation-driven, non-traditional type of productivity that fits into China's high-quality development narrative. Examples of new-quality productivity can be found in China's electric vehicle, lithium battery and solar cell industries.

The report mentioned many areas that are considered important in the future, including but not limited to artificial intelligence, biomanufacturing, commercial space launches, quantum technologies, life science, green tech and low-altitude economy that focuses on utilizing airspace within 1,000 meters above the ground.

The conference wants to emphasize that innovation is the main driver of economic growth, said Sheng Chaoxun, director of Strategic Policy Department, China Academy of Macroeconomic Research, adding that core technologies and moving up the value chain are the keys to a modernized industrial system.