Xi Pushes China to Seek Tech Breakthroughs for Future Growth Despite Headwinds
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Xi Jinping is pushing China to develop "new productive forces" to power future economic growth as traditional engines like manufacturing, exports, and property investment slow.
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This refers to breakthrough technologies like AI, quantum computing, and nuclear fusion that could transform industries. It's an ambitious strategy to make China an innovation superpower.
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However, China faces challenges translating R&D spending into productivity gains and commercial success. Regulatory crackdowns have also hurt confidence.
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Local governments struggling with lower revenues may not be able fund long-term moonshot projects. Lackluster growth and demand may curb private investment.
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Xi aims to upgrade industries with tech and invent new ones where China can "overtake at the curve." But he may need to boost demand first to aid this industrial transformation.