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The Significance of Accelerating the Development of a Modern Industrial System

By Qiu Ping Source: Updated: 2023-11-10

China's experience in reform and opening up over the past 40 years has proven the real economy to be the cornerstone of its development. The modern industrial system meanwhile is a crucial support for the country in fostering strategic strengths for future development.

It is integral to creating a new development dynamic and promoting high-quality development. To forge a new development dynamic, China must make its domestic economy more vibrant and reliable, while engaging in the global economy at a higher standard. The key to achieving this is ensuring unimpeded economic flows and achieving a dynamic equilibrium between supply and demand. On a fundamental level, this means establishing well-coordinated links between industries based on secure and stable industrial operations, so as to form a modern industrial system that is self-reliant, controllable, secure, reliable, and highly competitive. To promote high-quality development, it is necessary to continually optimize the allocation of production factors in order to propel informativeness changes in the quality, efficiency, and dynamism of development, boost basic industrial capacity, and modernize industrial and supply chains. In doing so, we will deliver effective qualitative improvements and desired quantitative gains in the economy. Ultimately, all this must be supported by a modern industrial system. Therefore, it is imperative to accelerate the development of a modern industrial system underpinned by the real economy to steadily raise total factor productivity. At the same time as addressing shortcomings, China will also promote the extension of industries toward the high-end of the value chain.

It is an important guarantee for ensuring common prosperity for all and meeting people's aspirations for a better life. Since the advent of reform and opening up in 1978, China has vigorously developed the real economy to create an abundant supply of products, thus bringing an end to the era of scarcity and effectively satisfying people's production and living needs. Having addressed the issue of availability, China will accelerate the development of its industrial system, improving its capacity to supply mid-to-high-end consumer goods, and meeting the demands of upgraded consumption. China thus needs to expedite the development of a modern industrial system to strengthen and improve the real economy and create a large number of high-quality jobs, so as to allow people to realize their aspirations for a better life through development.

It is an urgent requirement for boosting China's international competitiveness and safeguarding national security. Today, the modernization of economies, especially major economies, is predominantly underpinned by a robust real economy. Even in the face of economic downturns, such economies have demonstrated remarkable resilience. It is fair to say that a country's level of modernization is largely reflected in the strength of its real economy and the modernization level of its industrial system. At present, food and energy security are acute issues, and industrial and supply chains are facing severe disruptions. External attempts to suppress and contain China could escalate at any time. To meet these challenges, China will move faster to develop a modern industrial system, boost the capacity of Chinese innovation, and establish resilient, comprehensive industrial and supply chains. With this, China can reinforce the underpinning of the real economy and solidify the foundations of national security and development. 

It is a crucial measure for adapting to a new wave of technological revolution and industrial transformation and seizing the initiative in future development. The current wave of technological revolution and industrial transformation is unprecedented in terms of intensity, reach, and impact. It has given rise to a vast array of emerging technologies and industries. These developments will profoundly alter production functions, raise productivity levels, and trigger a systematic restructuring and reshaping of the global industrial landscape. In industrial development, China is facing more intensive competition, opportunities and challenges, and a stark choice between forging ahead or falling behind. China will accelerate the development of a modern industrial system underpinned by the real economy so as to harness new industries and new forms and models of business that can generate new growth engines. By fostering new growth drivers and new strengths, China will be able to seize the high ground in industrial competition and keep a firm grip on the initiative in development.