[News Terms] The Keyword of Chinese Industry 'Xinzhisheng Chanli'... "We Are the Best in Manufacturing"

An Economic Term Coined by President Xi Jinping
Emerging as a Core Keyword in China’s Industrial Policy
Aimed at Emphasizing Manufacturing and Technological Self-Reliance

Xinzhishengchanli (新質生産力) refers to new qualitative productive forces. The official definition is "advanced productive forces characterized by cutting-edge technology, high efficiency, and high quality, in line with the new development philosophy." This concept was mentioned by Chinese President Xi Jinping during the 11th collective study session of the Political Bureau of the Communist Party of China on January 31 last year.

President Xi is known to have first introduced this term on September 7, 2023, at a symposium promoting the comprehensive revitalization of Northeast China held in Heilongjiang Province in northeastern China. Xi emphasized the active cultivation of strategic emerging industries and future industries such as new energy, new materials, and electronic information, accelerating the formation of new qualitative productive forces to enhance and develop new driving energy.

The scene of the Chinese automobile production process implemented [Photo by AI Image]

Since that day, Xinzhishengchanli has emerged as a core keyword in China’s industrial policy. It was mentioned at the 2023 Central Economic Work Conference and the collective study session of the Political Bureau in January last year. In March last year, the concept was included in the government work report at the Two Sessions, designating it as one of the "Top 10 Government Tasks" for the year. Thus, this term has consistently appeared in major political and policy documents.

The "Made in China 2025" plan, launched in 2015 and concluding this year, aiming to make China a manufacturing powerhouse, has been further accelerated through the concept of new qualitative productive forces. At the 3rd Plenary Session of the 20th Central Committee last July, which determines China’s economic strategy, President Xi stressed, "We must provide greater momentum for high-quality development through new qualitative productive forces."

Forums and research institutions focused on Xinzhishengchanli have also been emerging. The Xinzhishengchanli Development Research Center was established at the University of Electronic Science and Technology of China. Additionally, the "China Digital Trade Xinzhishengchanli CEO Forum" was held in Yiwu City, Zhejiang Province, and the "Xinzhishengchanli and Digital Economy Forum" took place in Xiamen City, Fujian Province.

President Yoon Suk-yeol shaking hands with Chairman Xi Jinping
Photo by Yonhap News

The reason for the emergence of the term Xinzhishengchanli is analyzed as a reflection of "changes in China’s industrial policy goals." The Chinese government, which focused on strengthening capabilities to become a manufacturing giant in the early 2000s, now emphasizes innovation and high quality to establish itself as a manufacturing power. Another view suggests that the term was created to promote manufacturing self-reliance amid intensified trade conflicts following the inauguration of the Trump administration in the United States.

Another reason is the decline in foreign investment within China. Foreign direct investment, which had greatly contributed to China’s growth, has recently sharply decreased due to strategic competition between the US and China, with foreign companies withdrawing and repatriating investments, spreading a sense of crisis within China. To overcome this, the Chinese government has emphasized the importance of technological self-reliance, leading to the emergence of the term Xinzhishengchanli.