Source: STDaily Published: 2024-04-01

A new report, titled China’s 'Compounding Interest': High-Quality Development and Outlook for 2035, was released at an international symposium in Beijing on March 31. Compiled by five think tanks in collaboration, from China, the U.S., Russia, Canada and India, the report illustrates the achievements of China’s high-quality development in five major sectors in the past few years with detailed data.

New wellbeing: The past years have seen major changes in China in 10 aspects: a more vibrant rural life, enriched life in small towns, increased urban green spaces, enhanced labor protection, better local healthcare, expedited administrative processes, reduced telecommunication fraud, strengthened anti-corruption measures, resurgence in capital markets and improved resident debt situation.

New consumption: Policies have a more significant role in driving economic growth. The development of cultural tourism across various regions in China has kept pace with market changes and continued to launch hot new consumption scenes. The entertainment and performance economy has greatly diversified new business forms of urban consumption, while the digital retail market has picked up.

New manufacturing: Advanced manufacturing has become the foundation of a strong country. 'Lighthouse factories' are leading the transformation and upgrading of traditional industries, with exports of the 'new three' – electric vehicles, solar panels and lithium-ion batteries – crossing the trillion-yuan mark for the first time, accelerating the internationalization of products and the global layout of industrial chains. The wave of independent research and development has accelerated the domestic substitution in the electronics industry, highlighting the role of industries' interconnection.

New infrastructure: Efforts have been concentrated in seven major areas: 5G base station construction, ultra-high voltage power transmission, inter-city high-speed rail and urban rail transit, new energy vehicles charging stations, big data centers, artificial intelligence, and industrial Internet. These have gradually become the new engines for the high-quality development of China's economy.

New services: Supported by 'new quality productive forces', new services have become a key driver of high-quality development, characterized by digital, platform-based, intelligent, equalized, high-end and globalized orientation.

According to the report, 'compounding interest' is a useful tool for wealth growth, asset preservation, as well as asset appreciation. The 'compounding interest' of China is characterized by stability of returns, long-term accumulation and sustainability. The momentum of China's modernization, characterized by the development of 'compounding interest', focuses on innovation-driven initiatives, deepening reforms, expanding opening-up, and promoting green development.