'New productive forces 'top provinces' agendas

Several provincial-level regions across China have identified "new productive forces" and the development of the private sector as their top priorities during their first meetings after the Spring Festival holiday.

Such a focus, they believe, will help foster new economic drivers this year.

Compared with traditional productive tools that are driven by elements like labor, land and capital, new productive forces refer to technological innovation, data, smart or intelligent technologies and the like, which are free from traditional economic growth models, promise high efficiency and top quality, and are in line with the nation's new development philosophy for a strategic future.

The emerging consensus on such priorities is like a mobilization conference where the provincial-level regions release their blueprint and action plans for the new year, said Dong Yu, executive vice-president of the China Institute for Development Planning at Tsinghua University.

The new year's first meeting of South China's Guangdong province proved to be one of the province's largest top-level meetings. Party chief Huang Kunming said at the meeting that as a pacesetter, Guangdong should take the lead in reaching the level of a moderately developed economy and an innovative economy by 2035.

But, he added for good measure, there are still large gaps and deficiencies. "The key to achieving these goals is technological innovation, industrial development, and the continuous liberation and development of 'new productive forces'."

Similarly, Beijing has put new productive forces high on its agenda at its first meeting in mid-February, emphasizing that their development is essential and an important driver of high-quality development.

The national capital said it is necessary to give full play to its advantages and promote the formation of a new productivity development pattern, and drive new productive forces like key technologies, "new infrastructure" and power batteries.

Wei Jianguo, former vice-minister of commerce, said: "If China wants to follow the path of rapid development, the country must plan ahead on new productive forces to seize the opportunity."

Wei, who is also a vice-chairman of the China Center for International Economic Exchanges, predicted that new productive forces will be key to major economies globally over the next five to 10 years.

"The top priority is to establish as soon as possible a unified and open technology factor market with orderly competition, complete systems and sound governance," Wei said.

In addition, the private sector has been a priority in the first meetings of several provincial-level regions.

East China's Anhui province, for instance, has invited over 100 entrepreneurs to its first meeting of the new year, including top executives of electric vehicle maker BYD and battery maker Gotion High-tech Co.

More than 18 entrepreneurs were invited to speak during the year's first meeting of Fujian province. The provincial government said it will implement a strategy of advancing development with the participation of the private sector and more efforts will be made to drive high-quality development of private companies.

The first meeting of Shanghai focused on optimizing business environment for the private sector. The city emphasized that improving business environment should "always be on the way".

Pan Helin, co-director of the Digital Economy and Financial Innovation Research Center at Zhejiang University's International Business School, said the reason why new productive forces are high on the agendas of local governments this year is that China has sent a clear signal that it will veer toward a growth model focused on "quality "over "quantity".

"The private sector also has a role to play in China's pursuit of high-quality economic development," Pan said. "This year, high-quality development will become a dominant direction of economic planning at the level of provinces and regions across the country."