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Press conference on pursuing the innovation-driven development strategy to build a country strong in science and technology

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Xinhua News Agency:

Since the 18th CPC National Congress, scientific and technological innovation has played an increasingly prominent role in economic and social development. As for implementing the requirements put forward by General Secretary Xi Jinping for developing cutting-edge technologies to spur economic growth, to meet the country's critical needs, and to improve the people's health, what role has scientific and technological innovation played in supporting China's high-quality development? What are the future plans and considerations? Thank you.

Wang Zhigang:

Thank you for your questions. First, we need to identify what high-quality development is. One of the major indicators for high-quality development is to shift the growth model from being factor-driven to innovation-driven, which is also one of the most important features of high-quality development. Second, how does science and technology support high-quality development? Science and technology should play its role in such areas as development of industries, companies, and regions, as well as major projects, and the building of talent pool. We need to promote the role of science and technology, which achieve far-reaching penetration and are of transformational significance and give impetus to high-quality development, offering technical support and nurturing new growth areas. New science and technology always help with the development of new industries. 

First, science and technology have led the development of emerging industries. Application of artificial intelligence, big data, blockchain, quantum communication, and other emerging technologies have created new products and new business models such as smart terminals, remote medical services, and online education. China's digital economy ranks second in the world. Technological breakthroughs have removed impediments to China's emerging industries. China is also among the top in the world in terms of the solar photovoltaic industry, wind power, new-type displays, solid-state lighting, and advanced energy conservation. 

Second, science and technology have helped upgrade traditional industries. With more than 20 years' research and development of battery electric vehicles, plug-in hybrid electric vehicles, fuel-cell electric vehicles, and battery and management systems, driving motor and power electronics and internet and intelligent technologies, China has formed a relatively complete layout for scientific and technological innovation in the new energy vehicles (NEVs) sector. NEV production and sales ranked first globally for a seventh straight year. China is rich in coal, which is the country's primary source of energy. Therefore, the country has accelerated R&D on the clean and efficient use of coal. R&D on ultra-supercritical electricity generators with an installed capacity of one million kW has been ongoing for 15 years, with coal consumption falling to the coal equivalent of 264 grams per kilowatt-hour, which is much less than the national average and leads the world. So far, related technology and demonstrative projects have been promoted across the country, accounting for 26% of the total installed capacity of coal-fired power. 

Third, the building of major projects has been underpinned by science and technology. A series of major projects, including an ultra-high-voltage power transmission project, networking of the Beidou navigation satellites, and Fuxing bullet trains, were put into operation in recent years, which are all supported by major technological breakthroughs. The operation of Deep Sea No.1, China's self-developed deep-water gas field, demonstrates the country's capability of ultra deep-water drilling for oil and gas, with its operational water depth exceeding 1,500 meters.

Fourth, science and technology have enhanced the competitiveness of companies. Companies continued to increase their spending on science and technology. Their R&D spending accounted for more than 76% of the country's total. China increased the additional tax deduction for R&D expenses from 50% in 2012 to 75% in 2018, and then increased this deduction to cover 100% of such expenses for small and medium sci-tech enterprises and manufacturing companies. The number of new- and high-tech enterprises grew from 49,000 over 10 years ago to 330,000 in 2021, and their R&D spending accounted for 70% of all companies' spending on R&D in the country. Tax paid by new- and high-tech enterprises increased from 0.8 trillion yuan in 2012 to 2.3 trillion yuan in 2021. New- and high-tech enterprises accounted for over 90% of the companies listed on the sci-tech innovation board of the Shanghai Stock Exchange and Beijing Stock Exchange.

Fifth, science and technology have promoted innovation in regional development. Beijing, Shanghai, and the Guangdong-Hong Kong-Macao Greater Bay Area have played a leading role in pursuing innovation-driven development, with their R&D spending accounts for more than 30% of the total. In Beijing and Shanghai, 70% and 50% of their transaction volume of technology contracts, respectively, were signed with other provinces and cities, demonstrating their role in leading innovation-driven development. A total of 169 national new- and high-tech development zones are home to one-third of the country's new- and high-tech enterprises, with per capita labor productivity in these regions being 2.7 times the national average. These companies provide 9.2% of jobs for college graduates nationwide. From January to April, revenues in national new- and high-tech development zones increased by 7.8% year on year to 13.7 trillion yuan, demonstrating a steady growth momentum. 

Sixth, we have cultivated top sci-tech talents. Well-trained professionals and strong sci-tech capacity are the prerequisite for a country to become great and prosperous. They are also the most enduring driving force and a most important leading force for high-quality development. We attached greater importance to talents and regarded them as the primary resource. We discovered, trained, and cultivated talents in our progress of pursuing innovation. A great number of sci-tech professionals forged ahead together in an unyielding spirit and made major breakthroughs in core technologies, such as manned spaceflight, satellite navigation, and deep water exploration. On Sunday, China launched the spaceship Shenzhou-14, marking the beginning of a new era in the development of its space station. China is also home to a great number of internationally competitive high-tech companies, which have made great contributions to solving critical scientific questions and removing barriers in social and economic development.

Next, we will accelerate and strengthen basic research. Integrated development of applications and technological innovation will be put in place. We will reinforce the principal position of enterprises in innovation, continue to sharpen our competitive edge in development, and build new power engines to achieve high-quality development. Thank you.

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