By Li Wei, DRC

2017-04-14

Developing new drivers requires us to lay emphasis on the innovation of cutting-edge technology and newly-emerged industries. At present, viewing from the perspectives of the long-term development of technology and industrial revolutions and the short-term economic performance, the world is undergoing a period when new technology and industries are swiftly sprouting up. Different from the time when traditional technologies and new industries were launched, China is now on par with those developed countries in light of these technical and industrial development. It should be noted that the growth rate of international trade has declined sharply and trade frictions among countries have increased substantially in post-crisis period, and the signs of de-globalization are looming up. As a result, China’s development is facing growing external pressures. Against such a landscape, many developed countries have implemented more strict restrictions on export with hi-tech content, and enforced tariff barriers to block China’s development overseas. Thus, only by making major breakthroughs in cutting-edge fields and realizing great progress in newly-emerged industries could China cultivate new drivers of development, and make due contributions to bailing the international economy out of difficulties.

At current stage, in light of developing new drivers, more innovative endeavors should be made on the upgrading of existing industries and products, and major efforts should be laid on making the real economy become bigger and stronger. On the one hand, the innovation in cutting-edge fields and the cultivation of newly-emerged industries are no easy job, and that requires the accumulation of capital, pilot practice, technical know-how and experience and that will take a long period for these new technologies and industries to become the mainstay to shore up China’s economic development. On the other hand, although China has become the world’s largest manufacturer, its real economy’s total scale remains to be enlarged. Objectively speaking, the development of China’s real economy is quite inadequate. In 2014, China’s per capita added value of secondary industry was less than one third of that of the United States. Even if China’s per capita added value of secondary industry can be increased to half of that of the U.S., its scale of added value of secondary industry can still be increased by about 70%. In the meantime, we need to be aware of the fact that in light of traditional industrial development, the gap between China and developed countries in terms of technology, management and other aspects has been narrowed to some extent, but the differences are still great. China’s traditional industries still boast relative large space for innovation in terms of technology, production process, brand value and operation management. Efforts need to be focused on strengthening, optimizing and enlarging real economy, and pushing forward the innovation of technology, products, production process, management and marketing models.