How China's Economy Advances Through Innovation

Deep News01-29

Development is akin to running a marathon; those who see far, endure patiently, and work diligently possess the sustained momentum to move forward. In China's recently released annual economic report, two figures stand out prominently. The first is that China's R&D expenditure intensity reached 2.8% in 2025, an increase of 0.11 percentage points from the previous year, surpassing the average level of OECD countries for the first time. The second is that China's innovation index ranking broke into the global top ten for the first time. From these figures, one can sense profound innovation vitality and potential, understanding why foreign media marvel that China "lives in tomorrow" and its "economic dynamism is unstoppable."

The year 2025 was by no means easy; persistent domestic challenges and new problems emerged continuously, compounded by external uncertainties, creating significant pressure. Yet, China's economy has not only become more resilient under pressure but has also broken new ground through perseverance. Where does this drive come from? Just as watering a plant requires nourishing its roots, so does economic development. The reason China's economy can advance through innovation lies in its steadfast focus on goals, prioritizing innovation and accumulating energy, while emphasizing building a solid foundation and enhancing long-term potential. With historical patience comes strategic resolve. Emphasizing R&D, education, and the environment—these are not tasks that yield immediate benefits, yet China persists in them diligently, planning for the future and considering long-term gains. This patience and resolve stem from the leadership of the Party and the advantages of the system.

Formulating and implementing five-year plans to chart the course and path; advancing comprehensive deepening of reforms to break down bottlenecks and lay solid foundations; making forward-looking arrangements for future industries with unwavering investment… Development is like a marathon; those with foresight, endurance, and practical action possess the powerful momentum for continuous progress. Innovation factors are like water; they require sufficient space and free flow to fully unleash their vitality. The reason China's economy can advance through innovation lies in its continuous efforts to expand development space and open new frontiers.

A total of 26,800 new business entities were established, including 21,000 new enterprises, a year-on-year increase of 16.42%; 53 transactions were conducted under the "zero-tariff" policy, with tax exemptions amounting to 109 million yuan, an increase of 194.6%... Recently, the Hainan Free Trade Port released its one-month post-closure report, showing initial vitality and promising prospects. Today's China is expanding high-level opening-up and building a unified national market; within the vast space constructed by the dual circulation, innovation vitality surges, and development opportunities are limitless. To unlock potential, it is essential to resolutely deepen reform and opening-up.

Looking back at 2025, visa-free policies fueled the popularity of "Travel to China," the number of exhibitors and transaction volume at the China International Import Expo hit new records, and major scientific facilities opened to global researchers… Against the backdrop of rising anti-globalization sentiment, such inclusiveness is particularly precious. China's practice demonstrates that isolation leads nowhere; innovation and development must be situated within the broad global context, adhering to the principle of mutual benefit and win-win cooperation. Ultimately, new creations, new momentum, and new development rely on people. The reason China's economy can advance through innovation lies in the daring and hard work of hundreds of millions of laborers.

On the 2025 list of Best Inventions released by TIME magazine, a Chinese company received a "Special Mention" for its hybrid artificial intelligence hyperspectral optical sorting machine. While it sounds sophisticated, in layman's terms, it is a machine for sorting waste clothing. This company has long been deeply involved in the waste recycling industry. To build a solid waste database and develop garbage-sorting robots, the team immersed themselves in various solid waste treatment plants, sorting garbage alongside workers during the day and annotating data in their dormitories at night. "We are not the genius type, nor the talent type; we are the hardworking type," the founder said frankly, reflecting the pragmatism of Chinese innovators and the diligence of Chinese workers, revealing from one angle the source of China's development potential.

Economist Lan Xiaohui expressed a simple belief in "trusting that China will become better" in his book: "This belief does not stem from academic training, but from Sima Qian, Du Fu, Su Shi, from 'the wide waves of a great river,' and from admiration for the diligence and pragmatism of the Chinese people." Taking joy in the innovative and positive trends in economic data, while feeling a profound sense of confidence and deep assurance, maintaining optimism about the future—all this originates from the majestic China that has emerged from the depths of history, and from our daily innovations and creations on this great land.

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