China’s economy is shifting into a higher gear, with the New Growth Drivers Index rising 14.2% year-on-year in 2024, reaching 136.0. Released by the National Bureau of Statistics on August 27, the data highlights how innovation, high-tech industries, and AI are fueling economic transformation and supporting high-quality development.
Key Growth Indicators
- New Business Entities: 27.37 million established in 2024, averaging 24,000 new enterprises per day.
- High-Tech Industry Investment: Grew 8.0% YoY, outpacing overall investment growth by 4.8 percentage points.
- New Economy Expansion: Driven by new industries, new business models, and new technologies.
These trends reflect how China’s innovation-driven economy is becoming a solid engine of sustainable growth while boosting global confidence.
Policy Support and Structural Reforms
To consolidate this momentum, policymakers emphasize:
- Institutional Reform: Advancing market unification, reducing transaction costs, and promoting free flow of resources.
- Business Environment: Breaking down regional barriers and improving conditions for startups and entrepreneurs.
- Innovation Ecosystem: Encouraging faster adoption of new technologies and expansion of emerging industries.
Such reforms strengthen the foundation for new quality productive forces, enabling innovation to flourish on a larger scale.
Artificial Intelligence as a Growth Engine
AI has become a strategic pillar in driving China’s economic transformation:
The State Council recently issued the “AI+ Action Plan”, calling for AI integration across sectors including industry, consumption, governance, and global cooperation.
The initiative accelerates AI’s commercial adoption and scaling, reinforcing China’s leadership in the ongoing technological revolution.
Talent and Global Cooperation
- Talent Development: Training interdisciplinary professionals to match new economy needs.
- Industry-Academia Collaboration: Strengthening ties between research institutions and enterprises.
- International Engagement: Enhancing China’s role in global innovation networks through cooperation and openness.
These efforts aim to build a sustainable innovation ecosystem while boosting China’s global competitiveness.
Conclusion
The surge in China’s New Growth Drivers Index signals profound structural transformation. By nurturing new industries and upgrading existing ones, China is laying the groundwork for long-term high-quality growth. With strong policy backing, AI adoption, and innovation-led reforms, the country is well-positioned to accelerate its role as a global economic growth engine.
