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China transforming into innovation powerhouse

Nation's emphasis on nurturing sectors such as 6G, quantum computing, robotics, AI will help it establish beachhead

By MA SI | CHINA DAILY | Updated: 2025-03-17 09:02
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People discuss a quantum computer exhibited at Zhongguancun Exhibition Center in Beijing on April 28. REN CHAO/XINHUA

By leveraging digital technologies such as the internet of things, big data and cloud computing, companies like Unitree Robotics are transforming their operations and creating more efficient supply chains. This approach not only improves competitiveness, but also contributes to the broader goal of developing new quality productive forces.

Zhejiang province is a bellwether for China's regional innovation strategies.

As a manufacturing and e-commerce hub, Zhejiang has channeled its entrepreneurial culture into tech innovation, and startups like Deep-Seek exemplify Zhejiang's knack for aligning private-sector agility with national goals, experts said.

Gao Yingzhong, an NPC deputy and head of the department of science and technology of Zhejiang province, said the province added 18 national key labs last year, bringing the total to 38, and it achieved 110 major scientific and technological achievements and received 30 national science and technology awards.

Denis Depoux, global managing director of market consultancy Roland Berger, said China is making a strategic shift toward modern and sustainable economic growth.

"The China stories of the past — low labor costs, relatively few added-value products, massive exports and massive fixed-asset investments in infrastructure building and fueling the economy — are gone," he said. "The new China story relies on factors such as advanced manufacturing, decarbonization, growing innovation prowess and the services economy."

The evidence is already clear.

China dominates the Global Lighthouse Network list, a project launched by the World Economic Forum in collaboration with consultancy McKinsey & Company to track advanced manufacturing plants, known as lighthouse factories, that apply state-of-the-art digital technologies.

To date, China is home to 79 lighthouse factories, the highest number of any country and accounting for more than one-third of the global total.

China also ranked 11th in the 2024 Global Innovation Index, solidifying its status as one of the fastest-improving economies, according to the World Intellectual Property Organization.

As the nurturing of new quality productive forces gains traction in China, "In the future, we may see more similar patterns in industries such as healthcare, new materials and AI, and these efforts will provide big opportunities for foreign companies," Depoux added.

Ma Jun, senior vice-president of Volvo Group and president of Volvo (China) Investment Co Ltd, said: "We see great potential in China's AI growth. With its vast market and diverse application scenarios, China provides a unique space for AI innovation. I look forward to seeing more creative AI solutions in the transport and infrastructure sectors, to help reduce logistics costs further and support sustainable development in China and globally."

Ma said that the Swedish company aims to drive prosperity through sustainable transport and infrastructure solutions, which is in line with China's top agenda for nurturing new quality productive forces.

"We are committed to leading the industry to move toward electrification, and we are doing this with an international setup, and China matters a lot in our plans," Ma said.

"Through our R&D center in Jinan, Shandong province, and production base in Shanghai, Volvo CE has launched a range of electrified equipment, which has helped expand our new energy product lineup in both Chinese and international markets," she added.

Volvo is not alone in seeing great opportunities that China's innovation-driven strategy brings to foreign enterprises.

David Poon, president of Infineon Technologies Greater China, said, "China's focus on green, low-carbon and high-quality development aligns with Infineon's strengths and opens a new growth opportunity."

He said that new quality productive forces span a wide range of industries, such as intelligent connected new-energy vehicles, renewable energy, new materials and humanoid robots, and Infineon's semiconductors empower innovation across all these fields.

"With our 'In China, For China' strategy, we plan to increase local production of general-purpose semiconductors to address customer needs about supply resilience …In the coming years, we aim to expand collaboration with local partners and broaden our local production to cover a wide range of automotive products," Poon said.

Zheng Yongnian, a professor at the Chinese University of Hong Kong (Shenzhen) and president of the Qianhai Institute for International Affairs, said, "For a country to develop new quality productive forces, it needs to possess three core elements, namely promoting basic scientific research, facilitating the translation of basic research into applied technology, and ensuring a supportive financial environment."

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