Trade Resources Economy China's Emerging Industrial Sectors Grow Rapidly Thanks to Innovative Policies

China's Emerging Industrial Sectors Grow Rapidly Thanks to Innovative Policies

China's emerging industrial sectors, inspired by technological innovation and innovative policies, have developed rapidly in 2015.

The boom in telecommunication, high-tech manufacturing, e-commerce, new energy and other emerging industrial sectors indicates that China's growth is changing from low-end export- and investment-motivated growth to a consumption- and service-oriented one, analysts said.

The Chinese government has adopted a series of innovative policies to support the emerging industrial sectors.

In general, China's new Five-Year Plan (2016-2020), aiming at more sustainable and balanced development, made it clear that China will seek growth through economic transformation, optimizing its industrial structure, improving the environment and enhancing quality and efficiency.

Specifically, in another plan called "Internet Plus," China pledged to link traditional industries with the Internet.

The boom in e-commerce gives Chinese people easy access to domestic and foreign products. A case in point: On Nov. 11 this year, the annual Singles' Day shopping festival saw Alibaba Tmall's online sales jump 60 percent to reach 91.2 billion yuan (14.17 billion U.S. dollars).

Moreover, China topped the world in terms of energy conservation and use of new and renewable energies, thanks to its policy of green development. Even abroad, China is championing the environment. For example, Chinese companies are also investing in Britain's renewable energy projects, such as solar energy, offshore wind and biomass.

China is also modernizing its manufacturing, which is highlighted by yet another plan. The plan "Made in China 2025" will benefit such industries as textiles, light manufacturing, steel and construction materials to improve their design and efficiency as well as lower their costs. For instance, China has unveiled the country's first domestically-produced large passenger aircraft C919 earlier in November, with 158 seats and a standard range of 4,075 kilometers.

The country's high-speed trains have also earned a reputation for quality at reasonable prices both at home and abroad.

In fact, China has surpassed Japan to became the leading exporter of high technology in Asia, according to the Asian Development Bank (ADB) Asian Economic Intergration Report 2015 released recently.

China's share of high-tech product exports such as medical instruments, aircraft and telecommunications equipment rose to 43.7 percent in 2014 from 9.4 percent in 2000, the ADB said.

"The shift marks China's success in boosting innovation and technology as key drivers of its economy as it seeks to move up the manufacturing value chain," Bloomberg reported.

Finally, China will strengthen consumer services to upgrade the consumption structure and bolster economic growth, according to a guideline issued by the State Council in November.

Several key sectors, including health care, senior citizen care, tourism, sports, hotels and catering, as well as education and training services will be prioritized, according to the guideline.

"The reality is that Chinese consumers are going to continue to increase in wealth and complexity," said Jonathan Woetzel, senior partner at Mckinsey.

Chinese Premier Li Keqiang, in an article titled "China's Economic Blueprint" which was published in the Economist magazine on Nov. 2, also remarked on China's reforms. The government is "pushing through market reforms, to speed the transition to a sustainable growth model markedly more driven by innovation and consumption. Employment, income levels and the environment are all high on our list of priorities," Li said. 

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