New industries focused on innovation, businesses become a bigger part of China’s economy in 2020 despite COVID-19

A delivery robot is seen at the 22nd China High Tech Fair (CHTF) held in Shenzhen, south China’s Guangdong Province, November 11, 2020 (Xinhua / Mao Siqian)

The most dynamic part of the Chinese economy that characterizes the country’s transition to innovation-driven growth has challenged the fallout from the COVID-19 pandemic to generate more added value as part of the GDP, showed Tuesday. official data.

The country’s new industries and business models continued on an upward trajectory despite the shockwaves of the coronavirus and the complicated international situation, with the added value of the “three new” economies totaling 16.93 trillion yuan ($ 2.62 trillion ), equivalent to 17.08% of GDP, 0.7 percentage point higher than the previous year’s reading, the National Bureau of Statistics (NBS) said on Tuesday in a statement posted on its website.

The ratio is expected to roughly double to reach one-third of GDP by 2035 before climbing above 50 percent by mid-century when the country is expected to have reached the second goal of the centenary of being built in a large modern socialist country with all due respect, according to an economist.

The added value of the so-called “three new” economy for 2020 increased by 4.5% from the previous year, 1.5 percentage points higher than last year’s GDP expansion in terms of current prices, by SNB.

The “three new” economies refer to a set of economic activities that prepare the Chinese economy for growth based on scientific and technological innovation.

Specifically, it includes new economic activities resulting from the application of new scientific and technological achievements and new technologies, new links and chains deriving from existing industries that adapt to diverse and personalized needs such as business activities. Internet, as well as the integration and reorganization of commercial operations.

The country’s powerful logistics network and the prevalence of mobile payments have long been seen as the bedrock of its internet economic prowess, providing a favorable wind for the rapid recovery of the economy, said Tian Yun, former vice director of the economy, on Tuesday. Beijing Economic Operation Association, to the Global Times. .

The growing added value of the “three new” economy is not a dividend of the new behaviors created by the coronavirus. Instead, it indicates that the country’s vision for growth centered on technological innovation presented in its 13th Five-Year Plan (2016-20) has paid off, laying the groundwork for the economy to emerge quickly from COVID- 19, according to Tian.

With China’s continued push for domestic innovation, especially breakthroughs in bottle control technologies, the ratio of the “three new” economies to GDP is on track to exceed 20% by the end of the 14th Five-Year Plan ( 2021-25) which gives priority to the development of the country’s digital economy, said the economist.

Beyond that, the ratio will likely exceed one-third of GDP by 2035, when the economy is expected to meet a set of long-term goals, he continued, envisioning a qualitative transformation by 2050. when the economy could be declared an innovation-driven economy and a forward-thinking global economic power in its entirety.

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