Tech advances to drive growth – China Daily

China’s Technological Advancements and Domestic Consumption Drive Sustainable Economic Growth

Introduction

China is making significant strides in technological innovation and stimulating domestic consumption, which are critical factors supporting sustainable economic growth. These efforts align with the United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 12 (Responsible Consumption and Production).

Technological Innovation as a Catalyst for Growth

Experts and business leaders highlighted China’s pivotal phase of innovation during the 16th Annual Meeting of the New Champions (Summer Davos) in Tianjin.

1. Strong Industrial Foundation and Talent Pool
   • Zhu Min, former deputy managing director of the International Monetary Fund, emphasized China’s large engineering talent pool and robust industrial base as key enablers for innovation.
   • He projected the emergence of numerous AI-driven software products, similar to DeepSeek, within the next 24 months, underscoring the rapid development of homegrown artificial intelligence technologies.
2. Integration of AI Across Sectors
   • Jin Keyu, professor of finance at Hong Kong University of Science and Technology, noted China’s unique advantage in combining advanced technology with large-scale manufacturing.
   • China’s “AI plus” program is driving AI integration into multiple sectors, enhancing innovation that supports SDG 9 by fostering resilient infrastructure and promoting inclusive industrialization.

Stimulating Domestic Consumption for Sustainable Prosperity

Innovation alone is insufficient for achieving prosperity; expanding domestic consumption is equally vital, aligning with SDG 8 and SDG 10 (Reduced Inequalities).

• Jin Keyu highlighted the importance of developing consumer markets in second and third-tier cities, where talent and services are rapidly growing.
• Joe Ngai, chairman of McKinsey China, observed that Chinese consumers are increasingly value-conscious, seeking quality products at lower prices without compromising standards.
• This shift towards value-for-money consumption reflects responsible consumption patterns, supporting SDG 12.

Economic Outlook and Policy Support

Despite global uncertainties, experts maintain a positive outlook for China’s economic growth in 2025, emphasizing the role of fiscal policies and market confidence.

1. Growth Projections
   • Liu Qiao, dean of Peking University’s Guanghua School of Management, expressed confidence that China will achieve approximately 5% growth this year.
   • He cited resilient consumption and fiscal tools such as special treasury bonds and modest deficit expansion as mechanisms to stimulate demand.
2. Investor Confidence
   • Thomas Fang, head of China global markets at UBS, reported increasing investor confidence in both A-share and H-share markets.
   • He attributed this optimism to government policies signaling a “whatever it takes” approach to economic stability, which is essential for sustainable development.

Commitment to Innovation and Sustainable Development

Zhang Xiaoyan, associate dean at Tsinghua University’s PBC School of Finance, highlighted recent AI breakthroughs as evidence of China’s commitment to fostering an innovation-friendly environment, which supports SDG 9 by promoting sustainable industrialization and innovation.

Conclusion

China’s accelerated technological breakthroughs combined with efforts to boost domestic consumption are laying a strong foundation for sustainable economic growth. These developments contribute significantly to achieving multiple Sustainable Development Goals, including economic growth, innovation, and responsible consumption, positioning China on a path toward a high-income, sustainable economy.

1. Sustainable Development Goals (SDGs) Addressed in the Article

1. SDG 8: Decent Work and Economic Growth
   • The article discusses China’s efforts to stimulate domestic consumption and achieve sustainable economic growth, aiming for around 5% growth in 2025.
   • It highlights innovation and industrial development as drivers of economic expansion.
2. SDG 9: Industry, Innovation, and Infrastructure
   • Focus on technological breakthroughs, particularly in AI and manufacturing.
   • Emphasis on innovation capacity, engineering talent, and industrial foundation.
3. SDG 10: Reduced Inequalities
   • Reference to rising opportunities in second and third-tier cities, indicating efforts to spread economic benefits beyond major urban centers.
4. SDG 12: Responsible Consumption and Production
   • Discussion on savvy consumers seeking value-for-money without sacrificing quality, implying sustainable consumption patterns.

2. Specific Targets Under the Identified SDGs

1. SDG 8 Targets
   • 8.1: Sustain per capita economic growth in accordance with national circumstances.
   • 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
2. SDG 9 Targets
   • 9.5: Enhance scientific research, upgrade technological capabilities of industrial sectors.
   • 9.2: Promote inclusive and sustainable industrialization and raise industry’s share of employment and GDP.
3. SDG 10 Targets
   • 10.2: Empower and promote the social, economic and political inclusion of all, irrespective of location.
4. SDG 12 Targets
   • 12.8: Ensure that people have relevant information and awareness for sustainable development and lifestyles.

3. Indicators Mentioned or Implied in the Article

1. Economic Growth Indicators
   • GDP growth rate (around 5% target for 2025).
   • Consumer spending and consumption resilience.
2. Innovation and Industrial Development Indicators
   • Number of technological breakthroughs and AI-related products (e.g., emergence of “DeepSeek-type” software).
   • Investment in research and development (implied through discussions on innovation environment).
3. Inclusion and Regional Development Indicators
   • Economic opportunities and talent growth in second and third-tier cities.
4. Consumption Patterns Indicators
   • Consumer behavior metrics focusing on value-for-money consumption without quality sacrifice.

4. Table of SDGs, Targets, and Indicators

Source: chinadaily.com.cn