China is currently undergoing a crucial phase of economic transformation and upgrading, where the balance between new and old driving forces is of paramount importance for achieving both quality improvement and reasonable quantifiable growthThe Central Economic Work Conference emphasized that there is a need to effectively integrate the nurturing of new driving forces with the upgrading of old ones, pointing towards a tailored development of new productive forces according to local conditionsThis approach reflects an increasingly profound understanding by the Party regarding the laws of economic work, contributing positively towards stabilizing the economy, optimizing structural development, and promoting sustained economic progress.

Understanding the essence of new and old driving forces is the first critical step in facilitating this transformationIn the era of high-quality development, nurturing new forces entails leveraging innovation as a driving factor, while the focus of upgrading older forces centers around the transformation and upgrading of traditional industries through innovative means

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New driving forces are defined as advanced productive forces and associated production relations that abandon traditional development patternsIn stark contrast to their old counterparts, the essence of new driving forces lies in their innovation-driven natureFor an extended period, China's economic progression relied heavily on an increase in capital and labor inputs, which came at a significant environmental and resource costHowever, as the economic environment evolves, the imbalance between supply and demand has gradually shifted from a supply shortage to insufficient demand, diminishing the effectiveness of growth driven merely by factor input expansionTransitioning to innovative driven growth is crucial in fostering high-quality development—a development that embodies new ideological avenues while ensuring sustainability in China's long-term economic growth.

Nurturing new drive is fundamentally about vigorously developing strategic emerging industries and proactively planning future sectors that continuously create new growth opportunities

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This involves investing in emerging industries and new business formats and infrastructure, thereby facilitating a clustered development of strategic emerging industriesChina has embarked on several initiatives in recent years that advocate for the growth of strategic emerging sectors, yielding significant resultsPolicies like subsidizing up to 80% of premiums for significant technical equipment insurance have supported the market introduction of over 30,000 critical technical equipment setsFurthermore, the implementation of competitive policies such as the National Strategic Emerging Industries Cluster Development Project has enabled a systematic advancement from isolated breakthroughs to boosting capabilities across entire sectorsConcurrently, there has been a particular focus on fostering new scenarios in fields such as artificial intelligence and biotechnology, gradually enhancing international competitiveness in future industries.

On the other hand, upgrading old driving forces is pivotal in promoting the transformation of traditional industries

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Traditional sectors, notably manufacturing, serve as significant channels for technological advancement, employment absorption, tax revenue creation, and international trade engagement, positioning them as crucial components of the national economyIndustries such as petrochemicals, metals, machinery, and textiles continue to comprise a major share of overall manufacturing value; however, they also face challenges of being 'big yet weak,' indicating an imbalance of low-end overcapacity alongside inadequate high-end supplyThe innovative capacity and industry foundation within traditional sectors fall short, compounded by tightening resource constraints and rising factor costsHence, rather than merely phasing out traditional industries, the aim is to promote transformation and upgrade through modernizing equipment while providing robust technological support in critical areasThe steel industry exemplifies this shift; many companies are experiencing operational and environmental improvements through digital transformations, thus enhancing overall efficiency and sustainability.

Theoretically, transitioning from old to new driving forces can occur through various methodologies

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One approach involves maintaining old forces while simultaneously expanding new ones; another is the complete replacement of old forces with new counterpartsA third, more harmonized approach encompasses nurturing new forces while renewing old ones concurrentlyThe latter proves more effective as it allows for an aligned evolution beneficial for both resource allocation efficiency and economic stability, minimizing potential risks like gaps in driving forcesThe successful implementation of this approach relies on having a comprehensive industrial system characterized by diversity and structural richnessChina's industry portfolio includes a spectrum of development types—be it follower, catch-up, parallel, or leapfrog—each necessitating different strategies for fostering and renewing their respective forces, thus ensuring economic advancement through balanced dual-driving mechanisms.

Identifying core tasks and focus areas is critical as the transition between new and old driving forces is an ongoing process

It necessitates an insightful identification of the main targets for nurturing new forces and updating older ones, ensuring that traditional industries remain rejuvenated while emerging and future industries continuously inject fresh vitality into economic development.

At the heart of it all lies the imperative of innovationBe it nurturing new forces or revitalizing existing ones, innovation acts as a dual catalystWith the ongoing waves of technological and industrial revolutions, a profound change in global technology innovation paradigms is unfolding, with artificial intelligence assuming a central role in spearheading innovationsIt is essential to harness the potential that AI brings to technologically driven innovation across sectors, supporting both the nurturing of new forces and the revitalization of older onesInvestments in foundational scientific research must be prioritized, allowing technological advancements to propel industrial innovations

This endeavor should be complemented by optimizing national innovation centers and engineering research hubs to focus on key technological research and demonstration, thereby facilitating swift breakthroughs and real-time applications.

Additionally, perfecting market mechanisms for the transition of driving forces is crucialEstablishing a financial system that aligns with a high-level socialist market economy enables effective integration of government investments with societal investmentsBy steering financial institutions to enhance credit support for developing new forces and upgrading old ones, sufficient financial backing can be ensured for both avenuesSignificant adjustments in the layout of state-owned enterprises are imperative, prioritizing the elimination of inefficiencies while paving pathways for the nurturing and renewal of driving forcesAdequate support for private enterprises is critical, ensuring their rights are protected and fostering their exploration into new domains and innovations.

Capitalizing on new types of productive elements is also essential in driving this transformation

By nurturing new workers and expanding new labor resources, traditional elements can be organically combined with emerging factors such as artificial intelligence and dataFacilitating a deep integration of technologies like big data and cloud computing across all facets of manufacturing will radically improve process efficiency and sustainability, cultivating new opportunities within traditional industries for innovation-led growth as well.

Lastly, developing new quality productivity requires a tailored approach that respects local conditionsThis necessitates a careful evaluation of local capabilities and existing industrial foundationsPathways to cultivate new forces and rejuvenate old ones must be context-specific and avoid a one-size-fits-all approachRegions rich in technological resources can focus on fostering high-tech industries, while those with a stronghold on traditional sectors should prioritize leveraging technology to advance their existing industries