From debut economy to future industries, 6 watchwords of China's ongoing reforms

BEIJING, Aug. 7 (Xinhua) -- This summer, a new book featuring articles by senior Chinese officials and over 100 Q&As has become a go-to guide for anyone seeking to better understand the latest blueprint of China's reforms.

This book with 310,000 Chinese characters provides an in-depth look at the strategies shaping the future of the nation, explaining the initiatives laid out in a resolution adopted in July on further deepening reform comprehensively to advance Chinese modernization.

This comprehensive guide has an appendix explaining official terminology, from which this article selects six terms to illustrate China's reform agenda: debut economy, industries of the future, patient capital, new forms of employment, childbirth-friendly society and silver economy.

DEBUT ECONOMY

People interact with performers after a puppet show at a shopping mall in Changsha, central China's Hunan Province, May 7, 2024. (Xinhua/Chen Zhenhai)

Amid efforts to develop a complete domestic demand system, China plans to actively promote the debut economy.

It is about the buzz and excitement that comes with the launch of something new. Just recall the thrill when a brand-new smartphone is unveiled, or when a cutting-edge electric car hits the market. That's the debut economy in action. It covers everything from the first reveal of a product, the opening of flagship stores, and the launch of new services, to the creation of new business models and technologies.

The significance of the debut economy, however, is not only a new product launch event or a brand display and runway show, but more importantly, the creation of a new business model, that is, the forming of a network comprised of research, development, release, display, promotion and sales of a new product, said Prof. Zhang Yina from Shanghai-based Fudan University.

Think about it this way -- every time a new product is launched, like the latest smartphone, smartwatch, or even a new app, there's a whole chain of economic activity that kicks off. Companies are showcasing their latest innovations, opening new stores, setting up research centers, and even establishing new headquarters to support these launches.

So why does it matter? Well, the debut economy is a sign of how trendy, high-quality, and innovative a place is. It shows how strong and vibrant the local economy is, how powerful the consumers are, and how capable the region is in terms of innovation. It's also a measure of how competitive a place is on the international stage, how strong its brand image is, and how open it is to new ideas.

China's retail shopping hubs like Shanghai and Guangzhou have unveiled a slew of measures to boost the debut economy, including supporting high-quality international brands in opening their first Chinese stores, streamlining the procedures for approving new product launches and facilitating customs clearance of imported debut products.

INDUSTRIES OF THE FUTURE

Visitors learn about a passenger-carrying autonomous aerial vehicle during the 8th China-South Asia Expo in Kunming, southwest China's Yunnan Province, July 25, 2024. (Xinhua/Wang Jingyi)

According to the new reform master plan, China will establish a mechanism for ensuring funding increases for industries of the future. These are areas powered by the latest technologies that are just starting to take off but have huge potential.

Think of them as the new kids on the block who are set to become the big stars. They can be super important, game-changing, and a bit unpredictable. But that's what makes them so thrilling. These industries are set to drive the next wave of tech and industrial transformation, becoming key players in economic growth. They're expected to become the main sources of new quality productive forces.

China is zeroing in on several key areas, namely future manufacturing, information tech, materials, energy, space and health. The country is investing a lot of resources and brainpower in some really cool tech, like artificial intelligence (AI), brain-like intelligence, quantum tech, atomic-scale manufacturing (working at dimensions even smaller than nanotechnology), bio-manufacturing, humanoid robots, low-altitude economy (think drones and other low-flying tech) and hydrogen energy.

These future industries aren't just about cool new gadgets. They're about fundamentally changing how we live, work and play. They're the strategic choices that will determine the landscape of the next wave of global innovation.

In addition, cultivating and expanding emerging and future industries will help build new advantages in China's industrial development and improve the international competitiveness of the domestic industry, said Deng Zhou, a researcher at the Chinese Academy of Social Sciences.

PATIENT CAPITAL

Skyscrapers are surrounded by clouds in Lujiazui, a finance zone in Shanghai, east China, June 19, 2024. (Xinhua/Fang Zhe)

China will encourage and regulate the development of angel investment, venture capital, and private equity investment, better leverage the role of government investment funds, and work to promote the development of patient capital.

Unlike other investments that aim for quick profits, patient capital is all about long-term gains. It's not swayed by short-term market swings but is willing to ride out the ups and downs to achieve bigger, more sustainable returns over time.

Li Sanxi, a researcher at Renmin University of China, believes the concept of patient capital has played a positive role in enhancing the vitality and confidence of various types of capital investment.

Capital that is not disturbed by short-term market fluctuations and can provide stable financial support for investment projects in the long term is an important engine to accelerate the cultivation and expansion of new quality productive forces, Li said.

Imagine you're planting something. Regular investments are like planting fast-growing vegetables. Patient capital, on the other hand, is like planting an oak tree. It takes longer to grow, but once it's established, it's strong, stable and provides benefits for generations.

Why does this matter? Well, patient capital is essential for big, innovative projects that can transform our world. It's the kind of funding that supports cutting-edge technology and industrial innovation. Think about the development of new medical technologies, renewable energy projects, or groundbreaking AI advancements. These are not quick wins --they need time, money, and the ability to weather risks.

China's State Council released a raft of measures in June to develop patient capital. The country will revise the regulations on the administration of foreign-invested venture capital (VC) enterprises to facilitate foreign investors in engaging in VC within the territory.

NEW FORMS OF EMPLOYMENT

A deliveryman prepares to change electric motorcycle battery at "the stage of deliverymen" in Gongshu District of Hangzhou, east China's Zhejiang Province, March 15, 2024. (Xinhua/Huang Zongzhi)

China aims to support and regulate the development of new forms of employment. A recent survey on the status of the national workforce revealed that 84 million people are now employed in new forms of work across China.

These are job types that have emerged with the rise of the internet and the digital economy. They include roles like food delivery drivers, ride-share drivers and online marketers who rely on internet platforms for their work.

The flexibility of these new employment forms is great for expanding job opportunities and balancing the labor market. For instance, if someone needs to find work quickly, they can often secure one of these platform-based jobs much faster than finding a traditional job. Plus, it opens up options for people who might need non-traditional work hours, such as parents or students.

New forms of employment have improved the efficiency of the allocation of labor resources and expanded the scale of employment. It will help change the structure of the job market and stimulate innovation and entrepreneurship, Yu Shaoxiang, a senior researcher at the Chinese Academy of Social Sciences, explained.

But with these new job types also come new challenges. One major issue is ensuring the quality of these jobs and protecting the rights of workers.

To this end, China will build a sound social security system to serve people in flexible employment, rural migrant workers, and those in new forms of employment, and expand the coverage of unemployment insurance, workers' compensation, and childbirth insurance programs, according to the reform plan.

CHILDBIRTH-FRIENDLY SOCIETY

A martial arts teacher teaches students in Huagang Town, Feixi County in Hefei, east China's Anhui Province, July 19, 2024. (Photo by Ma Jiagui/Xinhua)

China will improve its population development strategy in response to population aging and the declining birth rate. It will strive to build a childbirth-friendly society.

In practical terms, the government will play a huge role by providing services that cover everyone, throughout their entire lives. This means robust healthcare, accessible education, and comprehensive support for families at every stage. They're also rolling out policies that make it easier and more affordable to have kids. Such policies include tax breaks, housing incentives and improved parental leave.

An important factor in deciding whether a region can achieve sustainable development is whether it adopts strategic and long-term childbirth support policies, said Prof. Yang Chenggang at Southwest University of Finance and Economics.

A childbirth-friendly society also depends on the culture and attitudes of the people. This means promoting positive views on marriage and family, encouraging shared parenting responsibilities, and creating a public dialogue that supports and celebrates having children.

It's about making sure that society as a whole sees raising the next generation as a shared responsibility. With a pro-childbirth environment, China aims to maintain a stable population size and ensure there are enough young people to support the economy and care for older generations.

Raising the birth rate to more sustainable levels is neither a mission impossible nor an easily achievable goal. Striving for a more harmonious relationship between the population, resources and the environment, China aims to further solidify its advantage in boasting a vast market and steadily enhance its overall national strength.

SILVER ECONOMY

China has pledged to provide more products and services to senior citizens and further develop the silver economy in response to challenges presented by an aging population.

China aims to develop the silver economy, which involves all economic activities geared toward providing products and services to older adults. This includes everything from healthcare, dining and care-giving services to more niche areas like anti-aging products, elder-friendly travel and financial products tailored for retirement.

Statistics show that the value of China's silver economy now stands at around 7 trillion yuan (about 980.58 billion U.S. dollars), and it is expected to reach around 30 trillion yuan by 2035.

Imagine your grandparents needing more convenient ways to access healthcare, more enjoyable travel options, or even just better-designed everyday products that make life easier for them. The silver economy is about creating and enhancing these services and products to meet their needs.

China is putting a spotlight on the silver economy because it's facing a demographic shift with an aging population -- just like many other economies in the world. By the end of 2023, China's population aged 60 or above had reached 297 million, accounting for 21.1 percent of the total population. Among them, 217 million were aged 65 or above, making up 15.4 percent of the population. According to international standards, China now is a moderately aging society.

With this reality firmly in mind, China is working to ensure that its aging population can live comfortably and with dignity, while also tapping into new economic potentials.

Together, these six terms outline a comprehensive reform strategy that highlights China's commitment to innovation, sustainability and inclusiveness.