China's push for 'new productive forces' new slogan, old ideas?

Questions remain over whether Xi’s call for innovation-led growth will have real impact

- Joyce Z.K. Lim

Chinese President Xi Jinping's latest catchphrase "new productive forces" received top billing at the country's recently concluded annual parliamentary meetings, or Two Sessions.

From lawmakers to provincial delegates, to business leaders like the chairman of a liquor brand, many across China have echoed Mr Xi's call to create new growth drivers amid a slowing of the economy.

But questions remain over whether this amorphous new slogan a continuation of a longstanding priority for China will move the needle in a meaningful manner.

Broadly speaking, "new productive forces" represents a call for more innovation to drive industrial upgrading and the development of high-tech sectors in China.

It was first mooted by Mr Xi in September 2023 during a visit to the rust belt province of Heilongjiang, China's northernmost province.

As a prolonged property slump and sharpening tech competition with the United States weigh on China and its ambitious growth target of 5 per cent in 2024, Premier Li Qiang's government work report listed the development of "new productive forces" as its topmost "major task" for the year.

This would entail upgrading traditional industries such as manufacturing, consolidating China's strengths in emerging industries such as electric vehicles, planning for "future industries" such as quantum technology, and stepping up the development of the digital economy and artificial intelligence (AI), said Mr Li.

Fanfare aside, this push for innovation and tech-driven growth is hardly new, with China long having sought to climb the value chain.