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Image for article titled China wants "new quality productivity." What does that even mean?

Photograph: China stringer (Reuters)

Understanding China’s economic system usually entails decoding oblique ideological jargon. Right here’s a brand new one so as to add to the glossary: “new high quality productiveness.”

Chinese language chief Xi Jinping first used the phrase last September (hyperlink in Chinese language). Since then, the get together propaganda machine has repeatedly touted the idea’s “nice theoretical and sensible significance,” urging the cadres and the overall populace to “deeply perceive and grasp” it. Main state-run newspapers have given the idea outstanding remedy. This week, Financial Each day ran a front-page editorial on learn how to obtain “new high quality productiveness.”

Boiled down, “new high quality productiveness” seems to imply leveraging scientific and technological innovation to turbocharge financial productiveness—extra bang for every unit of buck.

However Beijing has lengthy extolled the importance of innovation for accelerating nationwide improvement and catching with rivals just like the US. So why the buzzy new phrase now to convey a message it has been prioritizing for years?

“New high quality productiveness” to spice up “prime quality development”

Some clues could also be present in another vague party catchphrase: “prime quality” financial development.

The phrase started gaining traction in 2021, having been enshrined in China’s newest national-level five-year plan and often promoted by Xi himself.

China analysts interpreted the give attention to “high quality” financial development to sign a coverage pivot: away from an financial mannequin depending on infrastructure and actual property spending, and towards consumption, exports, and enterprise funding. It was additionally a roundabout method of claiming China’s days of double digit GDP will increase are over—a fragile message on condition that the get together’s legitimacy is carefully tied to delivering sustained financial development.

It might seem {that a} related narrative spin is now being utilized to the “new high quality productiveness” idea. Certainly, China’s development price in complete issue productiveness—a metric for the way effectively labor and capital are deployed—has declined significantly because the international monetary disaster. Latest months’ new give attention to “new high quality,” then, could also be one other method of gingerly acknowledging slowing development in China’s productiveness.

In December, Financial Each day ran an op-ed by a researcher specializing in “Xi Jinping thought.” The creator famous that “new high quality productiveness is a vital driving drive for the prime quality improvement” of China.

It’s a mouthful. It’s additionally one other method of claiming the roaring financial development of yesteryear at the moment are a factor of the previous.

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