Key Technology Policy Priorities Adopted at the 20th National Congress of the Communist Party of China

On October 16, senior leaders of the Communist Party of China gathered in Beijing for the 20th National Congress of the Party. The week-long meeting, held once every five years, brought together 2,340 Party delegates to discuss major changes and key priorities, including technology development and the country’s broader strategy.

The two-hour report delivered by Chinese President Xi Jinping was the central part of the meeting. He reminded delegates that the next five years would be critical for China to achieve breakthroughs in “high-quality economic development, greater self-reliance and strength in science and technology, and significant progress in creating a new development model.”

China has set a long-term development goal of achieving socialist modernization by 2035. To reach this goal, the Party believes the country must continue developing its technology sector and integrating technological innovation into traditional industries.

In his speech, Xi said that China needs to build a modern industrial system serving the “real economy,” develop a national strategy to stimulate innovation, and ensure that new development is environmentally sustainable.

Build a Modern Industrial System
Xi emphasized that a modern industrial system would be a key driver in achieving “high-quality development” and expanding domestic demand.

He stated that China needs to advance a new model of industrialization and strengthen its capabilities in manufacturing, aerospace, transportation, cyberspace and digital development.
His speech also stressed the need to develop integrated clusters in fast-growing technology sectors such as next-generation information technology, artificial intelligence, biotechnology, new energy, new materials, advanced equipment and green industries.

According to Xi, China also needs to strengthen its capacity to secure supplies of strategic resources.

Xi said that China should find ways to ensure these developments serve the real economy, for example by integrating modern services with advanced manufacturing and modern agriculture, and by integrating the digital economy with the real economy.

“We must continue to focus economic development on the real economy while promoting economic growth and advancing a new type of industrialization,” he said.

Advance an Innovation-Driven Development Strategy
Xi acknowledged that China has made significant progress in several major technology sectors and has achieved growth in advanced areas such as human spaceflight, supercomputing, deep-sea exploration, satellite navigation, quantum information, nuclear energy technologies, large aircraft manufacturing and biomedicine.

However, he also noted that China’s technology industry still lacks sufficient technological innovation.

Xi emphasized that China needs to improve its technological innovation system by building an open innovation ecosystem with global competitiveness.

He also announced a new innovation-driven development strategy that includes conducting independent, industry-leading scientific research and transforming China into an attractive destination for technological innovation and a global talent hub.

The country plans to implement a number of major national science and technology projects to strengthen its capacity for independent innovation, with the ambition of becoming a global innovation leader by 2035.

Xi also said that a “positive environment” would be created to support the growth of technology-based small and medium-sized enterprises.

According to Xi, innovation lies at the “core” of China’s modernization.

Transition to Green and Low-Carbon Development
Xi said that China needs to pursue a development model that protects the environment while ensuring economic growth, reducing carbon emissions and pollution, expanding green development, protecting ecosystems and conserving resources.

Other major initiatives under Beijing’s climate agenda include the cautious development of hydropower due to its significant environmental impact, the active but safe and orderly development of nuclear power, improvements to official methods for calculating CO₂ emissions, and the creation of a national carbon trading system.

China is also continuing its transition toward carbon neutrality through the adoption of clean-energy vehicles. Xi pledged to promote low-carbon lifestyles and accelerate a “green revolution” in the transportation sector.

In 2021, China’s ambition to become a leader in global climate action faced serious challenges, as heavy industries such as steelmaking experienced widespread electricity shortages.

At this year’s Congress, the central government placed greater emphasis on economic stability and resilience. Xi stated that China would steadily work toward carbon peaking and carbon neutrality, implementing control measures “in a planned and phased manner.”

Xi also said that the country would continue accelerating the clean energy transition while improving the “clean and efficient use of coal,” taking into account constraints in natural resources.

The strategy envisages a gradual reduction in both total emissions and carbon intensity, defined as the amount of energy consumed per unit of economic growth.