Editor’s note: The article, written by Zhang Youguo, the deputy director of the Institute of Quantitative & Technological Economics at the Chinese Academy of Social Science, reflects the author’s opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.
In this special commentary series “China’s Economy: Five Coordination Priorities for 2025” by CGTN, experts analyze the five coordination priorities highlighted at the Central Economic Work Conference. The series offers an in-depth analysis of China’s economic strategies and potential.
Balancing the relationship between quality and quantity is crucial at this pivotal stage of China’s transition from rapid growth to high-quality development. This balance not only concerns the actual effectiveness of current economic work but also determines the long-term development potential of the Chinese economy. To this end, it is essential to adhere to the general principle of pursuing progress while ensuring stability, fully and accurately implementing the government’s new development philosophy, and coordinating efforts to enhance quality while expanding quantity.
First, high-level supply and demand should drive each other forward to actively advance the strategy of expanding domestic demand. It is critical to address people’s aspirations for a better life by steadily increasing household incomes and providing high-quality products and services in areas such as “green” and safe food, home living, transportation, tourism, intellectual and cultural needs, healthcare, and essential public infrastructure.
Second, we must accurately understand and advance the development of “new quality productive forces” through technological innovation to build a modern industrial system. In one aspect, vigorous efforts must be made to support the orderly development of strategic emerging and future industries, represented by artificial intelligence, for higher-quality economic growth. In another aspect, there must be a strong focus on using digital and green low-carbon technologies to upgrade, strengthen and transform traditional industries, thereby stabilizing the fundamentals of economic growth.
Third, high-standard opening-up should be expanded to stabilize trade and foreign investment, fostering connectivity between domestic and international economic cycles. By progressively promoting institutional opening-up, further unlocking the potential of the service sector and cultivating high-quality cooperation within the framework of the Belt and Road Initiative, China can strengthen its connections with the global economy. By capitalizing on both domestic and international resources and markets, China can stabilize external demand, making it a key driver for economic growth.
Fourth, it is imperative to unlock regional development vitality and strengthen regional synergy. By fully playing the advantages of the socialist system, robust mechanisms for region-wide coordinated development should be established. Various regions should be encouraged to develop specialty industries tailored to their local strengths, contributing uniquely to the formation of a new development framework.
Fifth, efforts must be intensified to accelerate the comprehensive green transition in economic and social development. China must drive the green transformation of production methods with the healthy development of green and low-carbon industries as a key. With a strategic focus on a proactive yet prudent carbon reduction, China should deepen reforms in the ecological civilization system and compel a green transformation of the economy and society.