David Song-Pehamberger
In September 2023, Chinese President Xi Jinping first mentioned the “new quality productive forces” and their centrality to advance “high quality economic development” across the country. The message of this new terminology was to prioritize the development of cutting-edge industries that produce high value-added products to spur long-term economic growth. This also included the necessity for controlling the relevant supply chains, from design to manufacturing.
Xi confirmed this new economic policy at his December 2023 speech at China’s Central Economic Work Conference, and Premier Li Qiang also focused on it in his annual work report at the National People’s Congress in March 2024. Most recently, China’s long-awaited Third Plenum in July 2024 restated this technology-driven focus to spur economic growth.
The foundation of Xi’s new productive forces is the “new three” – electric vehicles (EV), lithium-ion batteries, and solar photovoltaics (PV). These are industries that are still emerging, but already have an immense economic impact, and all three are largely controlled by Chinese companies. Going forward, Beijing wants to expand its control over these and other strategic supply chains.
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