Developing new quality productive forces

The resolution on further deepening reform to advance Chinese modernization, which was adopted at the third plenary session of the 20th Central Committee of the Communist Party of China, reiterated the significance of cultivating new high-quality productive forces. It underscored the need to enhance institutions and mechanisms to promote the growth of these new quality productive forces in alignment with local conditions. Furthermore, it emphasized the redirection of diverse advanced production factors toward the advancement of these new high-quality productive forces.

New quality productive forces represent a leap in productivity, as they help create new economic growth drivers amid the fast-changing global landscape and the economic challenges faced by China. Hence, the development of new quality productive forces is necessary for promoting high-quality economic development and achieving Chinese modernization.

The new quality productive forces theory enriches the traditional economic growth theories, which emphasize the importance of factor inputs (including capital, labor and land) and total factor productivity for economic growth. And the development of economic growth theories will help us better understand total factor productivity.