China's journey towards a high-quality economic paradigm is gaining momentum, shifting its gears from sheer speed to sophistication and sustainability. Central to this transformation are the emergent "new quality productive forces", a new buzzword in China that refers essentially the vanguards of advanced productivity. Veering off the traditional path, these forces echo China's updated agenda that valorizes innovation and eco-friendliness. Employing cutting-edge technologies and methodologies, the focus is now on producing efficiently and excellently.

In this evolution, China is keen on redefining its economic landscape to foster an environment where traditional industries are not just sustained but are enhanced to become smarter, more advanced, and environmentally sustainable. This strategic shift aims at bolstering productivity and efficiency while ensuring that China remains competitive on the global stage. By nurturing these new productive forces, China is setting a new standard for industrial upgrading and high-quality development, underscoring the importance of innovation and sustainable practices in its future growth trajectory.

Highlighting Hangzhou's strategic moves, Mayor Yao Gaoyuan shares a tri-fold agenda to boost the city's innovative output: becoming a crucible for global innovation, a hub for the tech transfer, and a pinnacle for artificial intelligence innovation.

An insight into HZ's economy 2023

The release of the 2023 Hangzhou Economic and Social Development Statistical Bulletin unveils the city's robust growth. With a GDP crossing the 2 trillion-yuan mark, Hangzhou emerges as the seventh Chinese city achieving this milestone. The "three new" economy sectors -- new industries, formats, and models -- were significant contributors, accounting for 40% of the GDP. It is noteworthy that the export boom in electric vehicles, lithium-ion batteries, and solar cells is marking them as Hangzhou's new export pillars.

Per capita GDP, a key indicator of economic development and living standards, stood at 161,129 yuan for the year. When adjusted for the average annual exchange rate, this equates to $22,866, placing Hangzhou slightly above Uruguay and Greece and just below the Czech Republic and Portugal on the global stage.

The per capita disposable income in Hangzhou was 73,797 yuan, ranking sixth nationwide. This marks a significant increase, reflecting Hangzhou's economic leap forward and the growing wealth of its residents. The top earners nationwide are in Shanghai and Beijing, with incomes surpassing 80,000 yuan, followed by Shenzhen, Guangzhou, and Suzhou. The primary sources of income in Hangzhou include wages, transfer payments (such as pensions and housing provident funds), property income, and business income. With employment and incomes on the rise, consumer spending also grew by 7.9% to 50,129 yuan per capita in 2023.

New vibe of digital economy

Recognizing Hangzhou's pioneering role in the digital economy, Yao reveals ambitious plans to elevate the city's status as a national hub for artificial intelligence innovation. This vision includes bolstering the digital economy through artificial intelligence as a new impetus, data as a new production factor, and computing power as new infrastructure. Hangzhou's commitment to cultivating a competitive digital industry cluster is evident in its efforts to enhance computing power infrastructure, foster the development of large models, and encourage the widespread application of artificial intelligence in various domains.

Hangzhou's digital economy, the "main engine" of its high-quality development, has witnessed its core industries' added value nearing 30% of the GDP. Nevertheless, the city ambitiously aims for a "second explosion" in the digital economy, seeking to integrate industry chain resources to forge new industrial landmarks, such as the "China Vision Valley", focusing on the burgeoning field of visual intelligence, already attracting significant investments and being poised to play a pivotal role in the city's economic framework.

Ambitions on higher

Emphasizing the importance of pushing new frontiers, Yao highlights Hangzhou's commitment to prioritizing science and technology innovation. The city is set on building a dynamic matrix of science and innovation platforms, aligning with national strategic scientific and technological initiatives, dedicating efforts to establishing national laboratories, and expediting the construction of large scientific facilities. Areas such as semiconductor technology, cloud computing, artificial intelligence, and critical biotechnologies are earmarked for breakthrough advancements, with the city undertaking over 100 key research and development projects at national, provincial, and city levels.

With the city's population reaching 12.522 million by the end of 2023, an increase of 146,000 from the previous year, Hangzhou has continued to attract over 100,000 new residents annually for nine consecutive years, demonstrating its magnetic appeal. Cities that offer the best solutions to essential life aspects like employment, housing, education, transportation, and healthcare emerge as top choices for talents. When policies converge, the soft power and service quality of a city become crucial in attracting them. Hangzhou's initiatives in pedestrian rights, intersection sunshades, and online services amplify its allure.

In a strategic move to consolidate Hangzhou's leadership in the transformation and transfer of scientific and technological achievements, Yao outlines plans to leverage the city's vibrant market economy, diverse business entities, and the rapid application of scientific and technological advancements. The establishment of a collaborative innovation mechanism, involving scientists, entrepreneurs, and investors, aims to provide solid support for constructing a modern industrial system. Furthermore, Hangzhou aspires to develop specialized technology transfer institutions and nurture intermediaries to bridge research and market gaps, fostering the growth of high-tech and high-growth companies.

These ambitious objectives reinforce Hangzhou's dedication to spearheading China's path towards technological innovation and digital economy development, heralding a new era of sustainable and high-quality economic growth.