By Hasan Muhammad

 

 

In 2025, China has restated its emphasis on innovation as the key to economic development, moving system focus to technology and industry to gain and maintain competitive advantage in new fields. The recently released Government Work Report also reiterates China’s vision of relying on science and technology as the main driver of new and higher productivity to enable sustainable economic development in the face of global challenges. 

 

The Chinese leadership has identified increased allocation of resources to research and development as a key sector with focus on Artificial intelligence, Quantum computing and Advanced manufacturing. This strategic move is an attempt to shift China from relying on conventional growth engines to new innovation-based models. 

 

An important part of this vision is the enhancement of enterprise-led innovation. In this context, China is trying to position companies to the forefront of technological development and link industrial and innovation chains to modernize the industrial system. The government appears committed to the integrated and clustered development of strategic emerging industries and to large-scale application of new technologies, products, and business models.

 

The focus of China is not only on the current technologies but also on the development of future industries. The Government Work Report presents the plans for the development of key industries such as biomanufacturing, quantum technology, embodied AI, and 6G. In order to gain leadership position in these most advanced fields, China is increasing funding and establishing mechanisms for the sustained excellence in technology. Some of the ambitions mentioned in the report include the development of next-generation intelligent terminals and smart manufacturing equipment like AI-enabled devices, intelligent robots, and new-energy vehicles.

 

In this regard, Artificial intelligence is set to play a very prominent role in China’s economic strategy. Being aware of the possible implications of the technology, the government has created the “AI Plus” strategy which is intended to combine digital technologies with manufacturing and markets in China. This initiative will expedite the shift to the intelligent, digital and green economy and the creation of new productive capacities. The report  reveals that large-scale AI models will be widely adopted and that innovation in the Industrial Internet will be intensified.

 

To guarantee that these initiatives are adequately funded, China has put in place a comprehensive support system. The Industrial and Commercial Bank of China (ICBC), the world’s biggest bank by assets, has set up an 80-billion-yuan ($11.04 billion) technology innovation fund. This fund is directed towards the enhancement of ‘hard technology’ sectors like semiconductors and advanced manufacturing in line with the central leadership’s directive on the private sector.

 

Another important part of China’s economic strategy is the integration of digital technologies with the real economy. The government is planning to extend the usage of 5G technology, to improve the management of computing resources and to develop internationally competitive digital industry agglomerations. These efforts are necessary to upgrade conventional industries and improve the overall performance of the economy.

 

Amid escalating trade tensions and external pressures, China’s innovation-driven development strategy serves as a buffer against global uncertainties. To this end, the country has adopted science and technology self-reliance in a bid to reduce its exposure to the external shocks in order to maintain a reasonable economic growth rate.  This posture is also supported by the Government Work Report as it stresses on the importance of collective effort in enhancing the development of core technologies. 

 

The economic strategy of China for 2025 shows a clear intention to develop innovation as the key element of the long-term development plan. In the process of integrating technological and industrial advancement, China is working to ensure it gains a competitive advantage in the strategic emerging sectors so as to build a firm platform for sustainable economic development.