China’s Five Main Development Focus in the Post 19th CPC Era is here – Are You Ready?
October 18, 2017 | IDCEstimated reading time: 5 minutes
The widely anticipated top leadership team line-up will not only assume the topmost positions in all key aspects of the CPC and government functions. They will also kick off the nation’s recalibrated strategic direction and roadmap for the five to ten years ahead. Towards the end of their new five-year term that ends in 2022, they will have to showcase to the entire nation how the direction and roadmap followed, executed, and measured when CPC celebrates its 100th birthday on July 1st, 2021.
As Kitty Fok , IDC China Managing Director, has pointed out,
“China in its post 19th-CPC era will witness a continuous and deeper application of the nation’s five development concepts, which revolved around innovation, coordinated development, green development, opening up, and inclusive development, all of which formed the fundamental development and reform ideology in China’s ongoing 13th Five Year Plan (2016-2020). The new era will also feature accelerated digital transformation (or DX) across the board to sustain China’s economic growth. Technology vendors who offer products, services, and solutions, and business organizations in various industries who have to transform into digital-native enterprises through the use of digital and disruptive 3rd Platform technologies, will all have to prepare for a new set of opportunities and challenges.”
In particular, IDC projects that China will take on these primary development focuses in its post 19th-CPC era: Innovation Driven Development, Digital Transformation, Globalization, Culture Revitalization. and People’s Well-being, to truly advance the country throughout the next decade.
Here is a brief recap of each development focus:
Innovation-driven development: China's investment in research and development (R&D), including all government and enterprises, reached around $223 billion in 2016, accounting for 2.1% of that year’s national GDP, and 15.6% of the global total (second largest in the world). By 2020, China aims to increase these expenditures to 2.5% of its overall GDP - a level that is in close proximity to that of the United States. In the National Science and Technology Innovation Plan (as part of the overall 13th Five Year Plan) published in 2016, China carved out an ambitious goal to transform as one of the most innovative countries, and to elevate the nation’s overall innovation competency among the top 15 nations in the world. According to a recent study by the Chinese Academy of Science and Technology for Development, China is currently ranked 17th, and it is ahead of all other developing countries in the world. Moreover, according to the same study, China is already ranked world number one in terms of total R&D personnel (for nine consecutive years), and world number one on Scientific Citation Index (SCI), Domestic Invention Patent Applications, and Domestic Invention Patent Approvals.
Digital Transformation: The Chinese government fully recognizes the impact of digital transformation (or DX) and has pushed for the application of technology advancements at the core engines of growth across industries. In State Council’s National Science and Technology Innovation Plan (as part of the overall 13th Five Year Plan), it called out the following twenty-one National Strategic Projects, with fifteen to be completed by the end of the 13th Five Year Plan (2020), and the other six to be completed by the end of the 15th Five Year Plan (2030).
Globalization: More than 100 countries and international organizations have participated, over 40 of them have signed cooperation pacts with China government, 56 economic cooperation zones have been established in more than 20 countries. So far, China has invested more than $50 Billion to this initiative, and in 2016 alone, $14.5 Billion was directly invested into 53 countries along the Belt and Road in projects on aviation, power, rail, road and telecommunications. China-led Asia Infrastructure Investment Bank (AIIB) and Silk and Road Fund (SRF) have played significant roles in some of these investments. The win-win partnership is attested by the $1.1 Billion newly-generated tax revenue along with 180,000 new jobs in the associated Belt and Road countries.
Culture Revitalization: In 2016, China’s gross value-adds within the various culture related industries, such as media, sports, entertainment, arts, religion practices, Chinese medicines, etc. exceeded 4% of the overall GDP. IDC predicts that, by end of 2022, this will further improve to 5% of GDP, mostly driven by paid usages in gaming, digital contents, and knowledge sharing practices, along with advertisements.
People’s Well-being: The "moderately prosperous society" goal finalized at the 18th National Congress of the Communist Party of China in 2012 is not only a target for income and consumption increases, but also a target for sound development of education, health and elderly care, energy conservation, environmental improvement, and other strategic factors. In 2016, China spent over $650 Billion in healthcare expenditures, about 6.1% of the yearly GDP. By 2022, IDC predicts that the overall healthcare expenditures will reach over $1 Trillion, Another area to watch would be energy conservation and environmental improvement sectors, in which IDC predicts that China will invest over $700 Billion In the next five years.
China’s upcoming top leadership team, which will be revealed out of the 19th CPC, is widely expected to be collaborative, determined, and supportive of refining, optimizing, and executing the ongoing 13th Five Year Plan with these newly identified strategic and primary development focus areas. It is very important to fully understand the market opportunities around each of them, and start to immerse in China’s Innovation Driven Development, Digital Transformation, Globalization / Belt and Road, Culture Revitalization, and People’s Well-being endeavors. Staying away from these strategic areas may lead to missed opportunities both along the Belt and Road and in China. Said Lianfeng Wu, IDC China’s Vice President &Chief Research Analyst.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company.
Suggested Items
Orbex Secures £16.7m Investment for Rocket ‘Ramp Up’ Period
04/24/2024 | OrbexThe UK spaceflight company Orbex has received £16.7m from six backers in an update to its Series C funding round.
Real Time with... IPC APEX EXPO 2024: Going Vertical: SCHMID's Advanced Solutions for Printed Circuit Boards
04/24/2024 | Real Time with...IPC APEX EXPOEditor Marcy LaRont chats with Bob Ferguson, the president of SCHMID, about advanced solutions for PCBs and the equipment they are highlighting at this year's show. He delves into vertical no-touch handling systems and the prospect of achieving sub-10-micron lines. Inspired by SCHMID's technology, Bob expresses excitement about where the industry is today.
Real Time with... IPC APEX EXPO 2024: Advancements in Laser Depaneling with LPKF
04/24/2024 | Real Time with...IPC APEX EXPOJake Benz, LPKF sales manager for North America, discusses the company's advancements in laser depaneling. LPKF has introduced a green wavelength laser for processing rigid FR-4 circuit boards, bringing significant gains in processing speeds to market. The company transitioned from IR CO2 to UV wavelength due to heat and burning issues.
Adura Solutions Exhibits at Del Mar 2024
04/24/2024 | Adura SolutionsSumit Tomar, CEO of Adura Solutions, has announced that his company will be exhibiting at this year’s Del Mar Electronics and Manufacturing Show to be held at the Del Mar Fairgrounds, San Diego, California, April 24-25.
Winner of The Science Show Rakett 69 Receives Incap Scholarship
04/24/2024 | IncapThe winner of the Rakett 69 science show, Andri Türkson, who stood out as an electronics enthusiast, received a scholarship from Incap Estonia, along with an internship opportunity in Saaremaa.