Three years after Chinese leader Xi Jinping proposed the concept of “new quality productivity,” the official announcement of the “Opinions on Developing New Quality Productivity” was released, seen as a correction to the blind layout and rush to develop emerging industries in practice. Analysts suggest that this may not solve the current economic issues in China.
On October 9th, the Central Committee of the Communist Party of China and the State Council jointly issued the “Opinions on Developing New Quality Productivity,” outlining 19 key points. The document emphasizes the implementation of the “AI+” action comprehensively and mentions issues of cross-industry and cross-regional integration, aiming to avoid “zero-sum” competition (ineffective excessive competition).
A spokesperson from the National Development and Reform Commission interpreted the “Opinions” as addressing the blind layout and investment issues that have emerged in the development of new quality productivity. Terms like “deviation,” “rushing,” and “speculative bubbles” were used to describe the situation.
The spokesperson also highlighted chaotic phenomena, such as engaging in malicious investment attraction under the guise of developing new quality productivity, blindly following projects, reckless spending, rush to develop, and blind investments.
The term “new quality productivity” was introduced by Xi Jinping during his visit to Heilongjiang Province, China, in September 2023. He claimed that “new quality productivity” represents a qualitatively advanced productive state in line with the new development philosophy. The Communist Party subsequently allocated funds and policy resources to innovative technologies and advanced manufacturing industries according to the official definition, echoing Xi Jinping’s call to develop “new quality productivity.”
Reuters previously reported that Beijing aims to shift the focus to the prospects of future growth through promoting the new slogan of “new quality productivity,” diverting attention from the “old problems” facing the Chinese economy. China’s economy is currently grappling with various challenges, including weak consumer confidence, unresolved real estate crises, and local government debt burdens.
Quoting an anonymous government policy advisor from the Communist Party of China, expressing concerns over how to achieve this goal, what paths to rely on, and what institutional mechanisms to promote technological innovation and enhance productivity. The advisor noted, “The reality is that market forces are fading, and the government is driving the push.”
On October 10th, China expert Li Tingqian’s analysis pointed out that China is facing issues such as weakened consumer growth, declining private investments, and continued stagnation in the real estate market. Xi Jinping still views fields like artificial intelligence, semiconductors, new energy, robotics, and high-end manufacturing as crucial directions for economic transformation, seeking to find new growth drivers beyond real estate and reduce reliance on traditional economic growth models.
The article suggests that the high-tech industry may take time to generate a broad economic stimulus effect, possibly not bridging the gap caused by the contraction in real estate and traditional investments in the short term. Without bolstering domestic demand, improving market confidence, and optimizing institutional environments, the localized success of the tech industry may struggle to translate into overall economic recovery.
Data from the National Bureau of Statistics of China shows that high-tech manufacturing and industrial investments are increasing, but nationwide fixed-asset investments, private investments, and general manufacturing investments are decreasing overall. From January to August 2026, fixed-asset investments nationwide decreased by 7.2%, private investments dropped by 10.1%; real estate development investments fell by 19.9%, new commercial housing sales area decreased by 12.1%, and sales volume declined by 13.0%. In terms of consumption, social retail sales increased by 1.1% from January to August, with a monthly increase of only 0.4% in August.