Xi stresses ‘new productive forces’ in China’s economic drive

Xi stresses ‘new productive forces’ in China’s economic drive

Calls to nurture high-end local sectors aim to prevent single-model development and industry bubbles.

President Xi Jinping’s comments have offered insight into the Chinese leadership’s latest economic growth focus. (AP pic)
BEIJING:
President Xi Jinping called on Tuesday for local governments to develop “new productive forces” according to their conditions and avoid creating a bubble in particular industries, offering fresh comments on the Chinese leadership’s latest new economic policymaking term.

In a meeting with the delegation from eastern Jiangsu province during the annual convocation of the National People’s Congress, Xi called for locality in the adoption of his new strategy, state news agency Xinhua said in a readout.

“It is necessary to prevent a headlong rush into projects and the formation of industry bubbles, and to avoid adopting just a single model of development,” Xi said.

All places “must selectively promote the development of new industries, new models and new drivers based on local resources, industrial foundation and scientific research conditions,” he said.

“Developing new productive forces does not mean ignoring or abandoning traditional industries,” the leader cautioned, but to “use new technologies to transform and upgrade traditional sectors and actively promote high-end, intelligent and green industries.”

Xi first used the terminology during an inspection tour to China’s northeast in September, where he called on the country to “lead the development of strategic emerging industries and future industries.”

State media has since tried to provide more details on the vague slogan saying it includes everything from the tourism sector to China’s “new three” growth drivers of electric vehicles, batteries and renewable energy.

Earlier, China set this year’s growth target at around 5% in its most high-profile annual political meeting. It was seen as an ambitious goal that will put pressure on the nation’s top leaders to unleash more stimulus as they try to lift confidence in an economy hampered by a property slump and entrenched deflation.

In his meeting with the delegation from Jiangsu — a province known for its large private sector — Xi also called for support of the development and growth of the private sector economy along with private enterprises.

That call comes amid lingering concerns about regulatory crackdowns on privately owned companies in recent years.

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