- Technological Innovation as Economic Strategy: China is leveraging emerging technologies like AI, IoT, and 5G to modernize its industrial system and drive a tech-focused economy by 2025, aiming to lead the fourth industrial revolution.
- Massive Digital Infrastructure Growth: With over 4.3 million 5G base stations and a projected digital economy output of 70 trillion yuan, China is establishing itself as a global leader in IoT and digital connectivity.
- Global Leadership in Industry Transformation: By merging digital technologies with advanced manufacturing, China is reshaping global production systems and positioning itself at the forefront of transformative economic and societal change.
As the year comes to an end, China has set its sights firmly on the future, unveiling a transformative roadmap during the annual Central Economic Work Conference. At the heart of this ambitious plan lies scientific and technological innovation, which is poised to become the cornerstone of the nation’s economic strategy as it moves toward 2025. This vision seeks to overhaul the country’s industrial system, creating a framework for a modernized, technology-driven economy that embraces new quality productive forces.
China’s approach is both strategic and ambitious. By launching major technological projects and large-scale demonstrations of emerging technologies, the nation is preparing to dramatically reshape its industries. Technologies such as artificial intelligence and the Internet of Things are central to this initiative, promising to redefine traditional processes and foster innovation across all sectors. The government’s commitment to nurturing these emerging industries reflects a keen understanding of the need to maintain a competitive edge in strategic technological domains.
Yu Hongjun, former vice-minister of the International Department of the Communist Party of China Central Committee, highlighted the rapid progress already made in digital infrastructure. Over the past several years, China has established a robust digital economy, underpinned by widespread adoption of 5G and ongoing advancements in 6G satellite communication systems. Speaking at the recent World Internet of Things Convention in Beijing, Yu emphasized that the rise of new IoT technologies, data applications, and business models is quietly but profoundly reshaping the country’s economic landscape. These developments form the foundation of the new productive forces on which China is staking its long-term success.
The scale of these efforts is staggering. He Xuming, chairman of the World Internet of Things Convention Executive Committee, described the global digital economy’s annual growth rate of 20 percent, driven in large part by IoT technologies. In 2024 alone, global IoT connections are projected to increase by more than 23 percent, surpassing 25 billion. China is not only participating in this growth but leading it, with plans to build over 4.3 million 5G base stations this year, connecting more than 3 billion IoT devices. The traditional digital economy in China is projected to reach an annual output value of over 70 trillion yuan ($9.59 trillion), growing at an impressive rate of more than 20 percent. With nearly a million companies operating in the IoT space, the groundwork for China’s leadership in these new productive forces is already well underway.
Perhaps the most intriguing aspect of this development is its potential to trigger a fourth industrial revolution. Wei Jianguo, former vice-minister of commerce, explained that this revolution centers on the convergence of digital technologies with manufacturing processes. Digitalization is expected to redefine global production systems, and China’s advanced manufacturing supply chains and digital leadership uniquely position it to lead this transformation. Wei emphasized that the fourth industrial revolution will extend far beyond economic growth, profoundly influencing social structures, economic models, and the relationship between humanity and nature.
China’s proactive approach reflects a strategic alignment of its technological advancements with broader economic goals. The integration of AI, IoT, and other next-generation technologies not only promises to boost productivity but also to reshape the very fabric of industry and society. This vision is not just about achieving economic milestones; it represents a fundamental shift in how industries operate, innovate, and interact with the world.
As 2025 approaches, the international community will be watching closely to see how China executes this ambitious plan. The country’s ability to lead the next industrial revolution will have profound implications, not just for its own future but for the global economy as a whole. The story unfolding in China is one of innovation, transformation, and a bold reimagining of what a modern economy can achieve.
