China hopeful of ‘solution’ as it prepares for US trade talks; Xi stresses need for strategic resolve

SIGHTS SET ON REAL ECONOMY, AI-LED INNOVATION

On Friday, senior Chinese officials outlined priorities for the coming years, emphasising a return to industrial fundamentals, and the expansion of emerging technologies like AI, artificial as key growth engines.

Zheng Shanjie, head of China’s National Development and Reform Commission, underscored the importance of the “real economy” – the production of tangible goods – as the foundation of the country’s long-term development.

“China’s economy was built on the real economy, and its future also depends on it,” Zheng said. “It has been suggested that building a modern industrial system and strengthening the foundation of the real economy be placed as the top strategic task.”

China will also prioritise the development of strategic emerging industries, including quantum technology and biomanufacturing, identifying them as potential new growth drivers, Zheng added.

These sectors could carry a market potential of 10 trillion yuan (US$1.4 trillion), Zheng said. 

Commerce minister Wang noted that economic performance would continue to be measured not only by headline growth but also by broader well-being indicators.

“We look not only at GDP, but also at GNI (gross national income) – we value not only the Chinese economy but also the economy of the Chinese people,” Wang said.

He also said that China would work to fully leverage the advantages of its vast domestic market, pointing to the country’s population of more than 1.4 billion and a middle-income group projected to exceed 800 million in the coming decade.

“We will vigorously boost consumption, create a ‘buy in China’ brand, and make the consumption of goods and services thrive,” Wang said.

“Let China’s big market become the testing ground, application field, and profit field of global innovation.”