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Xi outlines main directions for developing new quality productive forces

China

China

China

Xi outlines main directions for developing new quality productive forces

2026-01-02 22:06 Last Updated At:01-03 00:37

Chinese President Xi Jinping has conducted in-depth fieldwork and inspections at the production frontline over the past year, outlining the breakthroughs and main directions for developing new quality productive forces.

One of the key drivers for advancing new quality productive forces is the development of artificial intelligence (AI).

Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, has attached great importance to the development of AI and made a series of important instructions during the year.

In April 2025, the Political Bureau of the CPC Central Committee held a group study session, which focused on strengthening the development and regulation of AI.

Zheng Nanning, an academician at the Chinese Academy of Engineering, made a presentation during the group study session and put forward suggestions.

"In late April, the Political Bureau held a group study session on the regulation and governance of AI. During that period, both China's AI sector and the global AI field were experiencing a phase of explosive growth," said Zheng.

During the session, Xi stressed the need to comprehensively advance technological innovation, industrial development, and application empowerment in AI, improve regulatory systems and mechanisms, and firmly maintain the initiative in AI development and governance.

Only four days after the group study session, Xi embarked on a trip to learn firsthand about the development of AI.

During his inspection tour in Shanghai in late April last year, he visited the Shanghai Foundation Model Innovation Center, a large-model incubator home to over 100 enterprises dedicated to cutting-edge technologies.

"This undertaking of AI is part of our endeavors to advance Chinese modernization, build China into a strong country, and realize the great cause of national rejuvenation, and the hope lies in all of you," said Xi.

Apart from actively developing emerging industries and making forward-looking plans for future industries, Xi also emphasized the transformation and upgrading of traditional industries.

In China's contemporary manufacturing landscape, traditional industries account for more than 80 percent of the total, directly affecting economic stability, employment, and people’s livelihoods. As Xi once pointed out, new quality productive forces may well be fostered by transforming and upgrading traditional industries.

During an inspection tour to Bensteel Group in northeast China's Liaoning Province in January last year, Xi stressed that the steel industry is an important fundamental industry of the country, crucial for the nation's real economy. He urged continued efforts to strengthen weak links, optimize industrial structures and contribute more to Chinese modernization.

When inspecting Luoyang Bearing Group in Luoyang City, central China's Henan Province in May, Xi said that modern manufacturing relies on sci-tech empowerment. He called for greater efforts in the quest for core technological breakthroughs and pursuit of a path of independent innovation.

"China has always adhered to the path of developing the real economy. From the past reliance on imported matches, soap and iron, to now becoming the world's largest manufacturing country with the most complete industrial categories, we have taken the right path. To truly realize Chinese modernization, we must continue to strengthen the manufacturing sector and master manufacturing technologies independently," Xi said.

In a conversation with workers at the Yangquan Valve Co., Ltd during his inspection tour in north China's Shanxi Province in July last year, Xi said that the real economy should not be abandoned, nor should the traditional industries, whiling stressing industrial transformation and upgrading through technological innovation.

"Promoting real economy can develop a country, and solid work makes it flourish. You should make solid efforts to realize Chinese modernization and ensure people live a happier life," Xi said to workers.

Xi outlines main directions for developing new quality productive forces

Xi outlines main directions for developing new quality productive forces

China's two major power grid operators -- the State Grid Corporation of China (State Grid) and China Southern Power Grid (CSG) -- reported a surge in investment in the first quarter of 2026, underscoring efforts to strengthen infrastructure construction and support high-quality socioeconomic development in China.

The State Grid said it completed fixed-asset investment worth 129 billion yuan (about 18.77 billion U.S. dollars) in the first three months of this year, up 37 percent the corresponding period of the previous year. The spending has driven more than 250 billion yuan (36 billion U.S. dollars) of investment across the wider industrial chain.

Key projects such as the Panxi ultra-high-voltage (UHV) alternating current (AC) line and the Anhui-Hubei back-to-back direct current (DC) project have seen ground broken for their construction, while several west-to-east power transmission projects have been upgraded.

Investment in connecting renewable energy generation to the grid was reported to have exceeded 10 billion yuan (1.45 billion U.S. dollars) from January to March, a year-on-year rise of more than 50 percent.

The CSG also reported robust growth in investment in the three-month period, with fixed-asset investment reaching 38.45 billion yuan (5.58 billion U.S. dollars), up about 50 percent from a year earlier.

Among its achievements, the company completed and commissioned 80 key projects, including the 220 kV cross-sea power grid interconnection project, which was officially put into operation on March 20. The project ended years of grid isolation on the Weizhou Island in south China by linking it to the main power system of the Guangxi Zhuang Autonomous Region.

The construction of 17 other major energy projects, including one linking the power grid of the Xizang Autonomous Region in southwest China with that of Guangdong Province in south China, is advancing rapidly. These projects are expected to bolster regional industries, the maritime economy, digital collaboration and the transition to green energy.

"By accelerating major project construction, investment during the 15th Five-Year Plan period (2026-2030) is expected to approach 1 trillion yuan (145 billion U.S. dollars), driving a further 2 trillion yuan (290 billion U.S. dollars) of investment across upstream and downstream industries," said Dong Yanle, deputy general manager of the Engineering Construction Department under the China Southern Power Grid.

China ramps up power grid investment in January-March to boost growth

China ramps up power grid investment in January-March to boost growth

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