China holds clear advantages in the Fourth Industrial Revolution

China has significant advantages in the Fourth Industrial Revolution and stands on the same starting line with advanced economies, said Justin Yifu Lin, dean of the Institute of New Structural Economics at Peking University.

Lin told China Perspective in a recent exclusive interview that China's ability to seize opportunities in the new round of technological change will hinge on freeing the mind, seeking truth from facts, and tailoring development strategies to local conditions.

"In the Fourth Industrial Revolution, we are not only on the same starting line as developed countries, but also possess several major advantages," Lin said, citing China's vast talent pool, huge domestic market and well-developed industrial ecosystem. He added that China has been effective in using market mechanisms to motivate entrepreneurs, while government support helps address market failures.

Under such conditions, Lin said, seizing the opportunities presented by the Fourth Industrial Revolution could provide strong momentum toward achieving the goal of the rejuvenation of the Chinese nation.

Lin emphasized that different regions should pursue development paths aligned with their specific endowments. Moving into technological frontiers typically requires a solid industrial foundation, sufficient high-level talent and good access to capital, he said.

At the same time, Lin acknowledged that a substantial share of China's industries still operates at technological stages associated with the Third, Second or even First Industrial Revolutions, with relatively low productivity. However, these sectors can still cultivate new quality productive forces through digitalization, intelligent technologies and green transformation.

Drawing on the automotive sector as an example, Lin said China once lagged behind in this industry rooted in the Second Industrial Revolution, despite years of heavy investment. It was through a strategic shift toward electrification and intelligent technologies that China achieved "overtaking by changing the track" and gained a leading position globally in electric vehicles.

Looking ahead, Lin said the development of new quality productive forces—whether in emerging or traditional industries—must remain grounded in local conditions, including industrial foundations and the availability of talent and capital.