The Central Economic Work Conference proposed that China's economic foundation is stable, with multiple advantages, strong resilience, and great potential. The supporting conditions and basic trends for long-term improvement have not changed.
Developed in the baptism of wind and rain, and strengthened through trials and tribulations. In the upcoming year of 2024, new quality productive forces have steadily developed on the land of China, and high-quality development has taken solid steps. The Chinese economy has achieved encouraging results, demonstrating abundant power and vitality.
In 2024, our reporters visited industrial parks, factories, and production lines, experiencing the vigorous upward trend of the industry and feeling the good momentum of economic recovery. They also gained further observation and thinking about the Chinese economy. In this issue of "In Depth Observation", four journalists' frontline insights are published to entertain readers.
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From New Quality Productivity
Looking at new driving forces for development
Our reporter Qiu Chaoyi
Developing new quality productive forces is an inherent requirement and important focus for promoting high-quality development.
Since the beginning of this year, from Baishan Heishui to the southern coast, from the hinterland of Qinling Mountains to the Yangtze River, new quality productivity has continued to unleash strong momentum: in Yan'an, Shaanxi, robots shuttle through the fields, pick and load apples into baskets, and then transport them to warehouses by unmanned transport vehicles; In Xiamen, Fujian, a smart factory has reduced the garment production time from the original 3 days to 3 hours, with one production line simultaneously producing over 50 types of clothing; In Hefei, Anhui Province, the third-generation autonomous superconducting quantum computer "Benyuan Wukong" has completed quantum computing tasks sent by more than 130 countries... During frontline interviews, reporters personally experienced the surging trend of new quality productivity development.
Over the past year, traditional industries have undergone transformation and upgrading, with industries such as steel, textiles, and machinery moving towards high-end, intelligent, and green development; The cultivation and growth of emerging industries, as well as the rise of new tracks such as biotechnology and new energy; Accelerating the layout of future industries, there are frequent good news of innovation in cutting-edge fields such as generative artificial intelligence and humanoid robots... Moving forward and climbing, the pace of industrial upgrading is vigorous.
The reason why the Chinese economy has been able to maintain overall stability and progress in the complex and severe situation of "increasing external pressure and internal difficulties" this year is inseparable from the strong support of the real economy and the steady development of new quality productive forces. To do a good job in next year's economic work, we need to "lead the development of new quality productive forces with technological innovation and build a modern industrial system", continuously accumulating new momentum for high-quality development.
Accumulating new momentum, we have strong capabilities. In recent years, China has made significant progress in technological innovation, especially in original and disruptive technological innovation. For example, in the field of power batteries, from traditional ternary lithium and lithium iron phosphate to semi-solid state batteries, and then to the latest all solid state batteries, battery material research has made continuous breakthroughs, helping new energy vehicles lead the world. Looking at the world, China is one of the fastest-growing economies in terms of innovation capability, with the largest number of research and development personnel and the highest number of invention patent applications in the world. It has the ability to seize the opportunity of the new round of technological revolution and industrial transformation. At the same time, it should be noted that China has strong supply and demand advantages, which are conducive to transforming technological innovation into industrial applications. For example, on the supply side of the C919 aircraft, more than 1000 enterprises and institutions participated in the development alone, driving more than 6000 breakthroughs in civil aircraft technology in a clustered manner; On the demand side, just over a year after its commercial debut, it has already received thousands of orders and entered a new stage of commercial operation. Relying on supply and demand advantages, with enterprises as the main body and the market as the guide, strengthening the deep integration of industry, academia, research and application can enable more innovative flowers to bear industrial fruits.
Accumulating new momentum, we have enormous potential. Erdos, Inner Mongolia, is deeply exploring resources such as wind and solar energy, and expanding its "wind solar hydrogen storage vehicle" cluster outside of the coal industry; Yibin, Sichuan, leverages its advantages in hydropower and other areas to develop the power battery industry; Guizhou Guiyang relies on the construction of a national hub node of integrated computing power network, polishing the business card of "China's Number Valley"... Developing new quality productive forces according to local conditions, cities have ushered in new opportunities for development. Next, we will deepen industrial cooperation in the eastern, central, western, and northeastern regions, and unleash more regional development potential.
We have policy support to accumulate new momentum. The new production relations that are compatible with the development of new quality productive forces are accelerating their improvement. For example, the low altitude economy has been included in government work reports in more than 20 provinces, implemented by multiple departments for innovative applications of general aviation equipment, and continuously optimized by the Civil Aviation Administration of China's licensing approval system. Thanks to timely and effective policy measures, China has become the largest source of technology for drones and is at the forefront of the world in fields such as flying cars. From the establishment of a 500 billion yuan technology innovation and technological transformation re loan, to the strengthening and expansion of the "two new" policies... With the continuous deepening of reforms and the sustained effectiveness of policies, the flow and allocation of various advanced and high-quality production factors will be smoother, and the development of new quality productive forces will receive more precise and powerful policy support.
　　
Through 2024, the foundation for the development of new quality productive forces in China has become more solid, the elements are more complete, and the environment is more suitable. Seize the opportunity, leap forward, and rely on innovation, especially technological innovation, to achieve dynamic transformation and kinetic energy conversion. The Chinese economy will surely become stronger due to "novelty" and achieve long-term success through "quality".
From a major country's heavy equipment
Look at the new advantages of the industry
Our reporter Ding Yiting
Heaven, earth, and sea! The world's largest diameter high-speed rail shield tunneling machine, the "Navigation", broke through 3000 meters in the Chongtai Yangtze River Tunnel excavation, and the first independently designed and built ocean drilling ship, the "Dream", was officially put into operation... Looking back at 2024, major technological equipment has been frequently reported, demonstrating China's new improvement in manufacturing strength.
A major country's heavy equipment, starting from the urgent and long-term needs of the country, has a long research and development cycle, high technical difficulty, and multiple industrial links. For example, a shield tunneling machine involves multidisciplinary technologies such as geology, machinery, mechanics, electrical engineering, control, and measurement. It is composed of tens of thousands of components, and a control system has more than 2000 control points, with each link requiring coordinated efforts. Another example is the "Dream" project, which involved over 150 research and construction units, more than 3000 builders, and more than 1100 consecutive days and nights of hard work to overcome the "hard bone".
Behind the emergence of a batch of major technological equipment, strong support from a complete industrial system is indispensable. At present, China is the only country in the world that has all industrial categories in the United Nations Industrial Classification. Among the 500 major industrial products, more than 40% of them rank first in the world in terms of production volume. The chief scientist of a tunnel engineering equipment company couldn't help but sigh: "In the past, we could manufacture whatever equipment was needed, and now we can manufacture whatever equipment is needed
What are the specific manifestations of the advantages of a complete industrial system from the perspective of a major country's heavy equipment?
Make up for shortcomings and achieve greater breakthroughs. This year, Unit 1 of the "Guohe No.1" nuclear power demonstration project, which has independent intellectual property rights, was connected to the grid for power generation. The steam generator is known as the "lung of nuclear power", and it requires special materials and specifications for the support plate, which used to be imported. To this end, domestic enterprises have started researching and collaborating on raw materials, successfully producing large-sized nickel based alloy support plates suitable for "Guohe No.1". The reactor pressure vessel comes from Shanghai Nuclear Engineering Institute and China First Heavy Industry Corporation; The steam turbine generator comes from Dongfang Electric and Harbin Electric... A series of key equipment materials have been independently designed and domestically manufactured, filling the gap.
Concentrate on tackling key issues, and gather the most urgently needed equipment, scarce resources, and outstanding talents for any link with shortcomings. A complete industrial system provides a foundation for cooperation between different links and enterprises. Integrated deployment and full chain promotion have continuously enhanced the resilience of the industrial chain.
Improve efficiency and gain more opportunities. Fujian Fuqing, the world's largest 26 megawatt offshore wind turbine has been offline at the Three Gorges Offshore Wind Power International Industrial Park. In the industrial park, wind turbines, wind turbine structural components, wind turbine assembly, blade production, etc. form a complete industrial chain with convenient supporting facilities. Zhuzhou, Hunan Province, is led by three main engine companies: CRRC Zhuzhou Locomotive and Rolling Stock Co., Ltd., CRRC Zhuzhou Institute, and CRRC Electric Machinery Co., Ltd., with enterprises from multiple industries such as steel, aluminum, information systems, and precision instruments gathering to produce tens of thousands of components required for an electric locomotive, which can be fully equipped within 5 kilometers.
A complete industrial system has given more confidence in optimizing the layout of productivity, providing advantages for manufacturing large national heavy equipment at lower costs and higher quality.
Promote integration and unleash more potential. Overcoming the technical challenges of nuclear power, among the 122 member units of the "Guohe No.1" industrial chain alliance, 37 are private enterprises, with private enterprises accounting for nearly 70% of the main suppliers; Providing a rich range of application scenarios, the bearing products of Luozhou Group are applied to fields such as new energy vehicles, wind power, and rail transit. Luozhou products are also present in major national heavy equipment such as the "China Eye", "Chang'e", and "Tiangong".
A complete industrial system, promoting the connection between upstream, midstream, and downstream, the integration of large, medium, and small enterprises, and the synergy between industry, academia, research, and application, can not only stimulate innovation vitality, but also provide broad application space and scenarios, promote the construction of an industrial development ecosystem, and unleash more innovation potential.
　　
The true heavy weapons of a great country must be in our own hands. "Since the beginning of this year, various regions and departments have introduced a series of measures to deeply implement the industrial foundation reconstruction project and major technological equipment research and development project, break through a number of strategic landmark equipment, and continuously enhance the independent and controllable ability of the industrial chain and supply chain.
The Central Economic Work Conference proposed to strengthen basic research and key core technology breakthroughs, advance the layout of major scientific and technological projects, and carry out large-scale application demonstration actions for new technologies, new products, and new scenarios. There are over 600000 technology-based and innovative small and medium-sized enterprises in China, and the central enterprise innovation consortium is accelerating its construction, with a strong foundation for innovation. Give full play to the advantages of a complete industrial system, accelerate the construction of a modern industrial system, and more hardcore major countries will stand on the backbone of the manufacturing industry.
From the Flowing China
Look at the new vitality of the economy
Our reporter Han Xin
Since entering the fourth quarter, a series of transportation and economic indicators have released positive signals, including the annual number of passengers sent by railways exceeding 4 billion, the passenger transport volume completed by Chinese airlines exceeding 700 million, the annual volume of express delivery exceeding 150 billion, and the cumulative operation of China Europe freight trains exceeding 100000. The constantly refreshing numbers and increasingly busy road networks interweave into the beautiful scenery of mobile China.
In the scenery, there are crowds rushing and streams flowing endlessly. At the end of January, the Spring Festival travel rush began, with over 8 billion people traveling, visiting relatives, and relaxing within 40 days, setting a new historical high; At the beginning of July, summer transportation began, and the civil aviation industry took off with the wind, transporting a total of 140 million passengers in two months, setting a new historical record; During holidays such as May Day, Mid Autumn Festival, and National Day, large-scale population movements take place in rotation, accelerating the arrival of "people enjoy their travels".
In the scenery, there is smooth logistics and day and night shuttle. At Zhoushan Port in Ningbo, Zhejiang, 20 ports are operating at full capacity, with sirens and cranes constantly circling the long coastline; In Linyi, Shandong, large logistics parks are distributed in a staggered manner, transporting over 200000 tons of goods to various places every day; At Xi'an International Port Station in Shaanxi Province, the China Europe freight train whizzes back and forth, and goods from many parts of the country gather here to depart and rush to Europe... The logistics hub operates efficiently, and the "smooth flow of goods" accelerates its landing.
The beautiful scenery of mobile China reflects the surging vitality of the Chinese economy.
This is the strong infrastructure strength of a major country.
On the first day, there were over 125000 train trips; In the first week, there were over 720000 train trips; In less than 4 months, the number of trains exceeded 10 million... After the opening of the Shenzhen Zhongshan Expressway at the end of June this year, there were many free riders and commuters. After 7 years of construction, this cross sea cluster project integrating "bridges, islands, tunnels, and underwater interconnectivity" has overcome multiple world-class technical challenges and set 10 "global records" in one fell swoop. The super project brings huge traffic flow.
From the forests and snowy plains to the water towns of Jiangnan, from the Gobi Desert in northern China to the mountains and rivers of Lingnan, bridges and tunnels cross mountains and seas, and roads crisscross through them. Nowadays, the main framework of China's "6 axes, 7 corridors, and 8 channels" has been basically formed, with a total length of over 6 million kilometers of comprehensive three-dimensional transportation network. The comprehensive transportation network that spans east and west and north and south connects the scattered cities and rural areas, bringing them closer together and compressing time and space.
This is the potential for domestic demand in the vast market.
The 150th express delivery in 2024 is a box of agricultural specialty products, such as flower cows and apples, from Tianshui, Gansu. Thanks to the remote area "transit free shipping" model launched by e-commerce platforms, the upward speed of agricultural products has been continuously improving. With only one category of flowers, cows, and apples, the annual delivery volume of Jitu Express has exceeded 3 million orders. At present, the nationwide and rural express delivery service network carries large-scale and high-frequency physical circulation, promoting the continuous release of consumer demand. Nowadays, China receives and sends 550 million express packages every day, of which over 100 million are circulating in rural areas.
Going to "Erbin" to play with ice and snow, visiting ancient architecture in Shanxi, and enjoying tropical scenery in Hainan... Transportation has become increasingly convenient, supporting the continuous growth of consumer industries such as tourism, accommodation, and catering. In the first three quarters, the number of domestic tourists reached 4.237 billion, a year-on-year increase of 15.3%, and the total travel expenditure was 4.35 trillion yuan, a year-on-year increase of 17.9%. Mobile China carries the aspirations of the people for a better life and also demonstrates the advantages of China's super large market.
This is the open charm of connecting the world.
On November 15th, as the X8083 China Europe freight train slowly departed from Chongqing Tuanjie Village Central Station and headed towards Duisburg, Germany, the China Europe freight train set a new record of 100000 trains. The 'Steel Camel Team' gallops tirelessly, connecting the Eurasian continent even tighter.
　　
Establishing route connections with hundreds of countries and regions, with the highest sea freight connectivity in the world; Jointly build the high-quality development of the "the Belt and Road", and sign more than 160 land, sea, air and mail related agreements with more than 90 countries and regions... transport infrastructure "hard connectivity", rules and mechanisms "soft connectivity", so as to better connect the domestic and international markets.
Year after year, time passes by, and China moves forward with fluidity——
The national major project Huangmao Sea Cross Sea Passage has officially opened, the prototype of the Western Land Sea New Passage Pinglu Canal is gradually emerging, and the world's longest under construction highway tunnel, Tianshan Victory Tunnel, is about to be connected... On the vast map, the meticulously crafted traffic "gongbi painting" is accelerating to become a "real-life picture", providing more powerful support for the sustained high-quality development of the economy and society.
From intensive exhibitions
Look at the new market space
Our reporter Liu Zhiqiang
Exhibition is an important window to observe the potential of economic vitality.
From industry exhibitions such as the Beijing Auto Show, Shanghai Auto Show, and China Air Show, to themed exhibitions such as the China Brand Expo and China International SME Expo, and to international trade events such as the China International Import Expo and Canton Fair... Since the beginning of this year, a series of exhibitions have been held in various places. Entering it, one can personally feel the heat and vitality of the Chinese economy.
In mid May, the China Brand Expo was held in Shanghai, bringing together nearly 1800 Chinese brand enterprises. From the world's first green shield tunneling machine, pile beam integrated intelligent bridge building machine and other major equipment, to high-end materials such as corrosion-resistant and high-temperature resistant "silk steel" and ultra-thin flexible foldable glass, to consumer goods such as craft ceramic cups and mini washing machines... new technologies and products are dazzling, demonstrating the vigorous development of new quality productivity.
At the CIIE held in early November, foreign exhibitors took turns showcasing their "expertise". New products such as future robots, 30 micron flexible foldable glass, and active water free printing and dyeing integrated machines have been launched, as well as specialty products such as Cambodian rice, Malaysian durian, Tanzanian cashew nuts, Ethiopian coffee, etc. Whether they are "new" or "special", they are all aimed at the world's most promising Chinese market.
Through each exhibition, people can sense the abundant momentum of China's manufacturing transformation and upgrading, and also have a deeper understanding of the demand advantages of China's super large market. For some time now, the Chinese economy has been facing pressure from insufficient demand, weak consumer ability and willingness, and increased difficulty in stabilizing investment. The relevant parties attach great importance to this issue and have taken a series of measures to address it. Especially since September this year, with the gradual implementation of a package of incremental policies, the "two new" and "two double" work has been solidly promoted, and the potential demand is being effectively released. From January to November, the total retail sales of consumer goods increased by 3.5% year on year, and fixed assets investment increased by 3.3%... A number of newly released economic indicators reflect the positive changes on the demand side.
The positive changes on the demand side are closely related to strong and effective macroeconomic policies, and fundamentally benefit from the solid support of economic fundamentals.
China has a population of over 1.4 billion and a middle-income group of over 400 million. The consumption of residents is constantly upgrading, and the huge market demand needs to be released. Taking the construction of new urbanization as an example, there is still a lot of room for improvement in China's urbanization rate, and every one percentage point increase in urbanization rate can stimulate trillion yuan of new investment demand and over 200 billion yuan of consumer demand. New consumption formats such as energy-saving and carbon reduction transformation, digital green, and "one elderly, one small" service consumption such as elderly care and childcare are nurturing vast market space for the people's yearning for a better life, which will continuously generate new supply and create new demand. Looking at the world, this demand advantage is unique and sufficiently stable.