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Bolster the systems and mechanisms for developing new quality productive forces in accordance with local conditions
2024.07.22
The Third Plenary Session of the 20th National Congress of the Communist Party of China proposed “Four Improvements” and “One Optimization” to enhance the systems and mechanisms for promoting high-quality economic development. Among these, improving the systems and mechanisms for developing new quality productive forces tailored to local conditions is particularly important.
Developing new quality productive forces is a crucial path to meeting the demands of economic and social development in the new era and achieving high-quality growth. We should adhere to the actual conditions of each region, such as resource endowments, industrial foundations, and environmental conditions. By establishing the new before abolishing the old, adapting to local conditions, providing targeted guidance, and formulating strategies and measures suitable for local development, innovation will become more efficient, transformation more fundamental, and the system more comprehensive.
To develop new quality productive forces in accordance with local conditions, we must first consider the region’s actual situation and effectively manage the transition of traditional, emerging, and future-oriented industries to achieve industrial transformation and upgrading. First, we should accelerate the transformation and upgrading of traditional industries by renewing enterprise equipment, implementing technological advancements, and improving management. This will promote the development of traditional industries towards high-end, intelligent, and eco-friendly priorities, enhancing their competitiveness and added value. Second, we should consolidate the leading position of advantageous industries by strengthening the entire industrial chain in fields such as new energy vehicles and photovoltaics. Expanding into overseas markets will further enhance the “Made in China” brand. Third, we should cultivate and expand future-oriented industries by intensifying technological research and the transformation of achievements. This will build new economic growth engines and create new economic growth points.
To develop new quality productive forces in accordance with local conditions, we must emphasize innovation-driven development and establish a robust technology innovation system with enterprises as the main entities, market orientation, and deep integration of industry, academia, and research. The development of new quality productive forces relies heavily on scientific and technological innovation. In recent years, significant achievements have been made in key areas, including manned spaceflight, lunar and Mars exploration, and deep-sea and deep-earth measurements. The capabilities for independent innovation in complex manufacturing, such as high-speed rail and commercial large aircraft, have steadily improved. However, there remains a gap between our current state and the goal of becoming a leading manufacturing power. According to the Manufacturing Development Power Index released by the Chinese Academy of Engineering, China is still in the third echelon. The Five Industrial Bases — basic parts, basic materials, basic processes, basic technologies, and basic software — remain highly dependent on foreign sources, indicating an unstable industrial foundation. Bottlenecks in core technologies and industrial processes are still prominent, and the number of Chinese multinational companies with leading innovation capabilities is still limited. Therefore, on the one hand, we must increase investment in scientific and technological innovation to achieve self-reliance in science and technology. This involves deeply implementing industrial base reconstruction projects and major technical equipment research projects to create independent, controllable, safe, and reliable industrial and supply chains. On the other hand, we must strengthen the role of enterprises in scientific and technological innovation, promote the aggregation of various innovation elements within enterprises, support them in improving their innovation capabilities, and fully stimulate their innovative vitality. Promoting the deep integration of the innovation and industrial chains is crucial. We should build a batch of manufacturing innovation centers to enhance the supply of key common technologies in essential industries.
To develop new quality productive forces tailored to local conditions, it is crucial to innovate systems and mechanisms, create a favorable business environment, and optimize the industrial ecosystem to adapt to new sectors such as digital, green, and low-carbon industries. Traditional systems and mechanisms are no longer suitable for the development of these emerging fields. We need to accelerate the innovation of systems and mechanisms, exploring appropriate policy frameworks and regulatory mechanisms to ensure that new production relations align better with the development of productivity. This requires deepening reforms to streamline government operations, delegate power, and enhance government services, thereby simplifying the approval process and improving administrative efficiency. Additionally, strengthening intellectual property protection, maintaining market order, and safeguarding the legitimate rights and interests of enterprises are essential. Furthermore, we must invest in infrastructure development, enhance public services, and provide a supportive environment for businesses to thrive.
To develop new quality productive forces in accordance with local conditions, we must also achieve regional collaboration to jointly promote the deep integration of industrial chains, supply chains, and innovation chains. This will help achieve complementary advantages, mutual benefits, and win-win outcomes. China not only benefits from the demand advantage of a large-scale market but also allows companies to share R&D and production costs through large-scale production and sales, creating supply advantages. Regional collaboration can leverage each area’s comparative strengths, achieve optimal resource allocation, and form more competitive industrial clusters. Additionally, this collaboration can enable developed regions to play a leading role in supporting underdeveloped areas, helping to narrow the regional development gap.
The author is Tang Yunyi, the Deputy Director of the Institute of Applied Economics of the Shanghai Academy of Social Sciences.
Source: Touch Shanghai