Editor”s word: Building larger self-reliance in science and know-how can be a key process for China within the fifteenth Five-Year Plan (2026-30) interval. China Business Journal spoke to Zhou Shaojie, dean of the Institute for Contemporary China Studies at Tsinghua University, on how this may be achieved. Below are excerpts of the interview. The views do not essentially symbolize these of China Daily.
The core requirement of larger technological self-reliance is embedded deeply in China’s process of constructing a modernized industrial system, together with the efforts to “build new types of infrastructure with appropriate forward planning”. This demonstrates the nation’s method of driving industrial upgrading by means of innovation. Ultimately, the worth of scientific and technological innovation ought to present itself within the upgrading of the economic system.
The progress of rising and future-oriented industries will play an essential position in supporting innovation. China ranks excessive on this planet in phrases of the quantity of patents, however their industrialization charge is simply about 40 p.c. Many patents have not been remodeled into actual productive forces. Therefore, efforts ought to deal with turning innovation into actual productiveness and an efficient driving pressure for industrial growth.
To domesticate new high quality productive forces at a quicker tempo, the efforts must be based mostly on the particular native situations in numerous areas. Not all areas are suited to the event of excessive-finish industries similar to laptop chips and enormous synthetic intelligence fashions. Local authorities ought to take note of the particular native situations, take benefit of new applied sciences to enhance conventional industries, or develop rising industries which are suitable with their native context.
Manufacturing is an important half of a rustic’s financial system and the inspiration of its energy. In 2024, the manufacturing sector accounted for about 25 p.c of China’s GDP. During the 14th Five-Year Plan (2021-25) interval, the nation connected particular significance to stabilizing the manufacturing sector’s share within the financial system. Many provinces additionally initiated methods to make manufacturing a serious pillar of the native financial system.
In current years, some labor-intensive industries have moved out of China to Southeast Asia and Mexico. In this case, a speedy drop within the manufacturing sector’s share in China’s GDP earlier than it turns into a comparatively developed financial system might result in hollowed-out industries.
In the fifteenth Five-Year Plan (2026-30) interval, China’s want for growth and safety can be met successfully if the manufacturing sector’s share within the GDP stays round 25 p.c. To obtain this aim, the manufacturing sector wants to rework from one which boasted decrease prices into one which has benefits in innovation. Only by enhancing its competitiveness by means of steady innovation can the nation offset the impression of elevated labor prices and tariffs — components which have led to the relocation of industries — and stabilize its manufacturing sector.
It’s broadly believed in tutorial circles that for China’s per capita GDP to be on a par with that of a mid-degree developed nation by 2035, its per capita GDP in 2035 must be double what it was in 2020. To obtain that aim, China’s common annual GDP progress must be round 4.4 p.c over the subsequent 10 years. If the typical annual progress reaches round 5 p.c throughout the fifteenth Five-Year Plan interval, China could have created extra favorable situations to hit the 2035 goal.
But it isn’t straightforward to take care of such progress. To accomplish that requires the nation to implement extra focused and efficient macroeconomic insurance policies throughout the fifteenth Five-Year Plan interval. It must attempt to faucet the potential of home demand, unleash the dynamism of innovation and stimulate the vitality of opening-up.