China’s Xi Jinping wants market-ready scientific research – and names the provinces that should take the lead
- China should do more to turn the country’s many patents into commercial products, President Xi Jinping says in sessions with parliamentary delegates
- Names ‘major provinces’ which should put time and resources into tech advancement, advises against abandoning old industries
President Xi Jinping has called for a more concerted effort to transform scientific research into marketable products – one major bottleneck in the advancement of China’s technological capabilities – and singled out two of the country’s provinces as places which should be leading the charge for tech innovation and national growth.
One delegate told Xi the main challenge China must contend with in its tech development is a low patent conversion rate, despite a high number of claims filed each year.
The president replied the situation is improving, but the country must still strengthen bonds between research centres and enterprises and improve incentive mechanisms.
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China’s conversion rate for scientific and technological achievements in 2021 was a mere 6 per cent, and its invention patent industrialisation rate 36.7 per cent according to a report by Nanjing University’s Yangtze Industrial Economic Institute published last year.
In comparison, corresponding figures from the United States were 50 per cent and nearly 80 per cent respectively.
He also urged policy continuity and real action to counter lingering scepticism over China’s economic health.
Beijing has put “new quality productive forces”, first mentioned by Xi in September, at the centre of its economic agenda.
The world’s second-largest economy is attempting to reorient economic growth patterns, address overcapacity concerns and counter US tech curbs, while deflating persistent scepticism of its economic prospects.
Xi named specific regions to take the lead in these efforts during a meeting on March 5 with delegates from Jiangsu province.
“I always encourage major provinces like Guangdong and Jiangsu to assume key roles at Politburo meetings. How can national modernisation be achieved if they don’t carry out their responsibilities? They are important and irreplaceable,” he said.
The combined GDP of Guangdong and Jiangsu makes up more than 20 per cent of the national total, and their shares of China’s exports and foreign investment are also among the highest of any region. Both provinces have set annual growth targets of 5 per cent, mirroring the central government.
People should not just criticise or point fingers, but take real action
Xi also used the sessions to take a swipe at critics, citing a poem by late leader Mao Zedong to say China needs long-term vision to resolve issues.
“People should not just criticise or point fingers, but take real action and solve one issue at a time,” he said at a panel with delegates representing the cause of environmental protection.
“As long as we’re convinced that we are moving forward, we must keep our mettle and carry on,” he was quoted by Xinhua as saying.
“Facing a new scientific revolution and industrial transformation, we must promote innovation to nurture emerging industries and build future industries with foresight,” he said.
“More enterprises conduct R&D themselves and transform the outcomes into new products. Research institutions and enterprises are forming synergies. Incentives and supporting policies must be ramped up to hasten the process.”
Specifically, Xi pushed for more incentives to promote the application of scientific research and pressed for “obstacles and bottlenecks” to be broken.
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However, he also gave two separate warnings – once with the Jiangsu delegation and again with a panel of a political advisory body – that local authorities should consider local conditions in this drive for development to prevent blind investment and bubbles.
Xi also said that traditional industries should not be given up in the name of hi-tech pursuits – a stance in line with last December’s tone-setting central economic work conference, where leaders vowed to “establish the new before abolishing the old”.
Traditional manufacturing still accounts for most industrial output, even with new sectors on the rise.
“Vocational education and craftsmanship are the key … We must further elevate the political and social status of industrial workers with a better incentive mechanism,” he said.
A researcher in Shanghai, who preferred to remain anonymous, said Xi’s remarks indicate Beijing’s determination to cultivate new sectors via effective industrial policies and continue spurring self-reliance despite new obstacles.
By saying to fix one issue at a time, Xi could also be trying to manage expectations
“Beijing is confident that the model, which worked well in the EV sector, can help more emerging industries rise, catch up and surpass the West,” he said.
“This strategy is also about breaking the West’s tech containment amid geopolitical complexities.”
A Beijing-based expert said China is also responding to concerns at home and abroad about the slow pace of reform, as recovery has not yet fully settled into a comfortably positive pattern.
“By saying to fix one issue at a time, Xi could also be trying to manage expectations, like the lack of big stimulus,” said the expert, who declined to be named.
“Beijing is determined to transform growth in a steady manner, and is ready to accept slower growth during the process.”
