China strives for innovation-driven modern economy

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Xi Jinping, General Secretary of the Communist Party of China (CPC) Central Committee, has put development as the Party's top priority during his governance.

As the Chinese economy transitions from a phase of rapid growth to a stage of high-quality development, it is necessary to transform China's growth model, improve its economic structure and foster new drivers of growth, Xi said on Wednesday while delivering a report to the 19th CPC National Congress in Beijing.

"It is imperative that we develop a modernized economy," Xi stressed, calling it a strategic goal for China's development.

Xi Jinping, General Secretary of the CPC Central Committee, delivers a report to the 19th CPC National Congress on behalf of the 18th Central Committee of the CPC at the Great Hall of the People in Beijing, October 18, 2017. /Xinhua Photo

Furthering supply-side structural reform

China should see supply-side structural reform as the main task, and work hard for better quality, higher efficiency, and more robust drivers of economic growth, Xi said.

He called on the country to make more efforts to develop advanced manufacturing and promote further integration of the Internet and the real economy, adding that new growth areas and drivers of growth should be fostered in "medium-high end consumption, innovation-driven growth, the green and low-carbon economy, the sharing economy, supply chain management, and human resource services."

China steps up supply-side structural reform to build a low-carbon economy. /Xinhua Photo

Harvey Dzodin, a research fellow at the Center for China and Globalization, was impressed by China's growing investment in research.

"I think this is already a trend that is beginning," Dzodin said.

Making China a nation of innovators

In his report, Xi underscored that China should develop a market economy with more effective market mechanisms, dynamic micro-entities and sound macro-regulation, which will steadily strengthen the innovation capacity and competitiveness of the Chinese economy.

"Innovation is the strategic underpinning for building a modernized economy," he noted.

"China is catching up in terms of technology development and especially innovation," said Cheng Li, a senior fellow and director of research at John L. Thornton China Center of Brookings Institution. He added that the country has made remarkable progress in IT innovation and artificial intelligence (AI) innovation.

In July, China issued a plan for AI development, setting the target for the country to become a major center for AI innovation and lead the world in AI technology and applications by 2030.

A polygraph developed by the Chinese Academy of Sciences. /Xinhua Photo

Besides, the country is pushing forward its "Made in China 2025" strategy to bring the manufacturing sector to a new level.

With innovation-boosting initiatives like these, Dzodin said China could become the home of more and more Nobel Prize winners.