"Quality & Quantity": Strengthening the Foundation for Modernization in China
Striking a balance between quality and quantity is essential during this crucial phase of China's shift from rapid growth to a focus on high-quality development.
TroibNews 
Editor's note: This article, authored by Zhang Youguo, deputy director of the Institute of Quantitative & Technological Economics at the Chinese Academy of Social Science, presents the author's perspective and does not necessarily reflect CN's views. It has been translated from Chinese and edited for brevity and clarity.
In the special commentary series "China's Economy: Five Coordination Priorities for 2025" by CN, experts delve into the five coordination priorities emphasized at the Central Economic Work Conference. This series provides a comprehensive analysis of China’s economic strategies and their potential impact.
At this critical juncture in China's transition from rapid growth to high-quality development, achieving a balance between quality and quantity is essential. This balance not only affects the effectiveness of current economic efforts but also shapes the long-term growth potential of the Chinese economy. It is vital to adhere to the overarching principle of achieving progress while maintaining stability, fully implementing the government's new development philosophy, and harmonizing efforts to enhance quality alongside increasing quantity.
First, a high-level interaction between supply and demand should be established to actively promote the strategy of expanding domestic demand. It's important to meet people's aspirations for improved living standards by gradually raising household incomes and delivering high-quality goods and services across various sectors, including "green" and safe food, housing, transportation, tourism, cultural and intellectual needs, healthcare, and key public infrastructure.
Second, understanding and promoting the development of the "new quality productive forces" through technological innovation is crucial for building a modern industrial system. On one hand, there should be strong support for the organized development of strategic emerging industries, particularly those represented by artificial intelligence, as a pathway to higher-quality economic growth. On the other hand, emphasis must be placed on leveraging digital and green low-carbon technologies to upgrade and transform traditional industries, thereby stabilizing the foundations of economic growth.
Third, expanding high-standard opening-up is imperative to stabilize trade and foreign investments, thereby enhancing the connectivity between domestic and international economic cycles. Through progressive institutional opening-up, unlocking the potential of the service sector, and fostering high-quality collaborations within the Belt and Road Initiative framework, China can enhance its integration with the global economy. Utilizing both domestic and international resources and markets will help stabilize external demand, becoming a pivotal factor in driving economic growth.
Fourth, it is crucial to invigorate regional development and strengthen regional cooperation. Capitalizing on the advantages of the socialist system, robust mechanisms for coordinated regional development should be established. Encouraging various regions to cultivate specialized industries based on their local strengths can significantly contribute to the development of a new economic framework.
Finally, efforts must be intensified to expedite the comprehensive green transition in economic and social development. Leading the green transformation of production methods through the healthy growth of green and low-carbon industries is essential. With a strategic approach focused on cautious yet proactive carbon reduction, China should deepen reforms in its ecological civilization framework, fostering a green transformation across the economy and society.
Sanya Singh contributed to this report for TROIB News
In the special commentary series "China's Economy: Five Coordination Priorities for 2025" by CN, experts delve into the five coordination priorities emphasized at the Central Economic Work Conference. This series provides a comprehensive analysis of China’s economic strategies and their potential impact.
At this critical juncture in China's transition from rapid growth to high-quality development, achieving a balance between quality and quantity is essential. This balance not only affects the effectiveness of current economic efforts but also shapes the long-term growth potential of the Chinese economy. It is vital to adhere to the overarching principle of achieving progress while maintaining stability, fully implementing the government's new development philosophy, and harmonizing efforts to enhance quality alongside increasing quantity.
First, a high-level interaction between supply and demand should be established to actively promote the strategy of expanding domestic demand. It's important to meet people's aspirations for improved living standards by gradually raising household incomes and delivering high-quality goods and services across various sectors, including "green" and safe food, housing, transportation, tourism, cultural and intellectual needs, healthcare, and key public infrastructure.
Second, understanding and promoting the development of the "new quality productive forces" through technological innovation is crucial for building a modern industrial system. On one hand, there should be strong support for the organized development of strategic emerging industries, particularly those represented by artificial intelligence, as a pathway to higher-quality economic growth. On the other hand, emphasis must be placed on leveraging digital and green low-carbon technologies to upgrade and transform traditional industries, thereby stabilizing the foundations of economic growth.
Third, expanding high-standard opening-up is imperative to stabilize trade and foreign investments, thereby enhancing the connectivity between domestic and international economic cycles. Through progressive institutional opening-up, unlocking the potential of the service sector, and fostering high-quality collaborations within the Belt and Road Initiative framework, China can enhance its integration with the global economy. Utilizing both domestic and international resources and markets will help stabilize external demand, becoming a pivotal factor in driving economic growth.
Fourth, it is crucial to invigorate regional development and strengthen regional cooperation. Capitalizing on the advantages of the socialist system, robust mechanisms for coordinated regional development should be established. Encouraging various regions to cultivate specialized industries based on their local strengths can significantly contribute to the development of a new economic framework.
Finally, efforts must be intensified to expedite the comprehensive green transition in economic and social development. Leading the green transformation of production methods through the healthy growth of green and low-carbon industries is essential. With a strategic approach focused on cautious yet proactive carbon reduction, China should deepen reforms in its ecological civilization framework, fostering a green transformation across the economy and society.
Sanya Singh contributed to this report for TROIB News
