In 2023, General Secretary of the Communist Party of China (CPC) Central Committee Xi Jinping first proposed the concept of new quality productive forces during a local inspection tour. Since then, he has made important statements and arrangements regarding leveraging local conditions to develop new quality productive forces on a series of important occasions.
In Volume V of Xi Jinping: The Governance of China, a chapter is dedicated to "New Quality Productive Forces for High-Quality Development." This chapter includes Xi's speech at the 11th group study session of the Political Bureau of the 20th CPC Central Committee, in which he emphasized new quality productive forces as "a primary driver of high-quality development." In excerpts from Xi's speeches made between March and December 2024 on leveraging local conditions to develop new quality productive forces, he stressed that "we should focus on the primary goal of high-quality development and leverage local conditions to develop new quality productive forces."
The fourth plenary session of the 20th CPC Central Committee will be held in Beijing from October 20 to 23. It will review the opinions solicited from in and outside the CPC on the CPC Central Committee's proposals for formulating the 15th Five-Year Plan (2026-30), drawing up a blueprint for China's development in the next five years, according to the Xinhua News Agency.
On April 30, when presiding over a symposium on China's economic and social development in the 15th Five-Year Plan period in Shanghai, Xi said higher strategic priority must be given to fostering new quality productive forces in line with local conditions in the next five years. Highlighting the roles of technological innovation and the real economy, he urged efforts to transform and upgrade traditional industries, develop emerging industries, and make forward-thinking arrangements for industries of the future, so as to accelerate modernization of the industrial system.
In the 14th installment of the special series "Decoding the Book of Xi Jinping: The Governance of China," the Global Times (GT), along with People's Daily Overseas Edition, continues to invite Chinese and foreign scholars, translators of Xi's works, practitioners with firsthand experience and international readers to discuss the theme of "new quality productive forces for high-quality development" and deeply explore the important practical significance and value of this concept.
In the 14th article of the "Readers' Reflections" column, Global Times (GT) reporter Ma Jingjing talked to John Quelch (Quelch), the Executive Vice Chancellor, American President and Distinguished Professor of Social Science at Duke Kunshan University, about his understanding of leveraging local conditions to develop new quality productive forces and the opportunities and global contributions brought about by China's rapid development of new quality productive forces.
Global Times: The fifth volume of "Xi Jinping: The Governance of China" involves 10 articles under the theme of "New quality productive forces for high-quality development," one of the most extensive parts in the book. President Xi said "In brief, new quality productive forces are advanced productive forces led by innovation. Breaking free from the traditional economic growth model and development path, they are characterized by high technology, high efficiency, and high quality, and they align very well with the new development philosophy." How do you understand the concept of "leveraging local conditions to develop new quality productive forces"? Amid weak global economic growth, what significant implications does the concept hold for global sustainable development?
Quelch: The call to leverage local conditions to develop new quality productive forces reflects China's forward-looking approach to growth. It recognizes that economic progress in the 21st century can no longer rely on traditional drivers - such as land, labor, or capital accumulation - but must instead be powered by innovation, advanced technologies, digital infrastructure, and highly agile and skilled human capital.
Equally important is the "tailored" aspect. China acknowledges that each region has different strengths in resources, industries, and research capacity. Rather than a one-size-fits-all model, the emphasis is on differentiated strategies that fit local conditions while contributing to national goals.
In a global context marked by uncertain growth, this concept offers a constructive path forward. It promotes more efficient, less resource-intensive productivity; aligns economic modernization with environmental sustainability; and encourages developing nations to innovate according to their own endowments rather than simply replicate advanced economies. If adopted broadly, it could help make global development more inclusive and resilient - something the world definitely needs.
Global Times: By comparing China's socioeconomic development when you first visited the country with the country's current progress in technological innovation, can you elaborate on the concrete achievements in China's development of new quality productive forces that you have observed.
Quelch: I first came to China in 1981. I was fortunate to have the opportunity to visit at that time and personally witnessed China's economic transformation during this period. This stands as one of the most remarkable and impactful socioeconomic transformations in human history. Around 44 years ago, China was at the very beginning of its reform and opening-up journey. Industrial capacity was limited, technology was largely imported, and under-resourced research institutions were just beginning to reconnect with the world.
Fast-forward to today, and China is a global leader in advanced manufacturing, the digital economy, renewable energy, and frontier technologies. The transformation is extraordinary - not just in scale, but in quality. The country is moving from being the "world's factory" to becoming a genuine center of innovation.
In my time at Duke Kunshan University in East China's Jiangsu Province, I have witnessed this transformation firsthand. Local governments in Jiangsu are integrating artificial intelligence (AI), robotics, and digital systems into traditional sectors. Universities and research centers are collaborating closely with industry. What I see are the practical effects of new quality productive forces in motion - an economy becoming smarter, greener, and more research-driven.
Global Times: From domestically-developed large aircraft and the expansion of China's large vessel fleet to breakthroughs made by firms like DeepSeek and Unitree Robotics capturing global attention, China's innovation achievements have been making headlines in 2025. Recently, the World Intellectual Property Organization released the Global Innovation Index 2025, showing that China has risen to the 10th position for the first time. How do you view China's recent achievements in sectors including digital transformation, renewable energy, and artificial intelligence?
Quelch: Digital transformation is perhaps the most visible area of progress. China entered the Global Innovation Index (GII) top 10 for the first time in 2025, rising to 10th place in the GII 2025 rankings. This milestone reflects not only the country's massive investment in research and development (R&D) but also the growing maturity of its innovation ecosystem. According to the World Intellectual Property Organization, applicants based in China filed about 1.64 million patent applications in 2023, far outnumbering other countries or regions, while applicants in the US filed about 519,000.
China leads in 5G networks, the industrial Internet, and mobile payment systems. In renewable energy, it dominates solar, wind, and electric vehicle manufacturing, helping drive global decarbonization. In artificial intelligence, Chinese firms and universities are producing world-class research and applications - from robotics to large language models. These achievements demonstrate that China's innovation system is no longer catch-up oriented. It is now generating original and interdisciplinary contributions with global impact and shifting from input-driven to value-added, innovation-driven growth.
In the past, people said, "America innovates, China imitates, Europe regulates" - but that era has ended. China has transitioned from a Western technology imitator to a leading innovator. China will strive to deliver more, better, and more affordable innovative products to the world. With its massive domestic market, China can test new ideas and offer fresh solutions, ensuring its innovation trajectory remains sustainable.
Global Times: In an article included in the fifth volume of "Xi Jinping: The Governance of China," President Xi stated, "You need to selectively promote new industries, new business models, and new growth drivers and provide differentiated guidance, based on local resources, industrial foundations, and research capabilities. You should also leverage new technologies to transform and upgrade traditional industries, and push for their high-end, intelligent and green development." From both global and Chinese perspectives, why does the Chinese government prioritize developing new quality productive forces? What lessons can other countries draw from China's tailored approach to developing them?
Quelch: China's prioritization of new quality productive forces is pragmatic and forward-looking. Domestically, it is about breaking through development bottlenecks by shifting from input-driven to innovation-driven growth. It strengthens economic security, enhances global competitiveness, and aligns development with sustainability and social well-being. From a global perspective, it also contributes public goods. China's advances in clean energy, green technologies, and digital infrastructure support sustainable development worldwide.
Other nations can draw valuable lessons from China's experience: First, aim to be better, faster, and more efficient. Second, align innovation policy with human capital investment - talent fueled by expertise, energy, and curiosity is the ultimate productive force. Third, ensure institutional coherence among government, industry, and academia. Finally, remain consistent and open. China's model shows that domestic capability and international cooperation can advance together.
Global Times: President Xi chaired a Political Bureau meeting of the Communist Party of China Central Committee on September 29 on major issues related to the formulation of the 15th Five-Year Plan (2026-30). The meeting stressed the need to stay committed to high-quality development, foster new quality productive forces in line with local conditions, and comprehensively deepen reform while further expanding high-level opening-up. How do you assess China's economic outlook for the next five years? Where does the confidence come from?
Quelch: I am cautiously optimistic about China's economic prospects for 2026-30. Growth will likely be stable and march steadily on the track of high-quality development, powered by domestic innovation, green transformation, and rising consumption.
Confidence rests on several strong foundations: Policy continuity - the upcoming 15th Five-Year Plan period continues to prioritize reform, innovation, and openness. Innovation capacity - China's heavy investment in science, technology, and education provides a long-term growth engine. Market scale - China's large and increasingly sophisticated domestic market supports demand-driven innovation. Work ethic - the diligence, adaptability, and resilience of the Chinese people remains a key source of strength. Global engagement - China's expanding trade and investment links, particularly with the Global South, diversify its growth sources.
Although challenges remain - managing debt, ensuring employment, and balancing regional development, China's adaptive capacity, institutional alignment, and commitment to high-quality growth give reason for confidence.
Global Times: During the 15th Five-Year Plan period, how should local governments in China adhere to the principle of "leveraging local conditions to develop new quality productive forces"? How will new quality productive forces empower China's high-quality development?
Quelch: In China, local governments play a decisive role in turning national strategy into regional innovation ecosystems. Execution is crucial. To "leverage local conditions," they must avoid trying to be all things to all people and instead start with a clear understanding of their comparative advantages - industrial base, research capabilities, and talent pool - then focus on resources accordingly.
For example, Beijing is leveraging its universities and research institutes to lead in AI and quantum technologies. Zhejiang is emphasizing digital entrepreneurship and talent cultivation, while Jiangsu - home to strong manufacturing clusters and a rapidly growing innovation ecosystem - is integrating advanced manufacturing with smart technologies and green transformation to build globally competitive high-tech industries. Each region follows a distinctive path, but all contribute to the same national goal of modernization.
As these strategies take root, new quality productive forces will empower high-quality development in three main ways: By upgrading industrial structures, moving from labor-intensive to innovation-intensive sectors. By promoting sustainability, through green and intelligent technologies that reduce resource use and emissions. By fostering balanced growth, enabling interior provinces and smaller cities to share in the innovation dividend.
It's worth noting that the global economic balance is gradually shifting toward the Global South, though the West continues to hold important institutional and technological advantages. The transition to a more multipolar economic landscape will take time, but China's commitment to inclusive innovation and high-quality development positions it as a constructive force in this process. This is not just about faster growth - it is about better growth: more efficient, more inclusive, and more sustainable.
Source: Global Times:
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