context: Xi Jinping 习近平 first introduced the concept of ‘new forces of production’ while touring Heilongjiang in September 2023. The concept is deeply tied to creating a modern industrial system, a new development paradigm and the PRC’s goal of transitioning towards an innovation-driven economy. A Politburo study session on the term implies its theoretical importance to the leadership. As the CPC takes an increasingly large role in economic and financial management, new forces of production are likely to factor into decision-making at the highest level.
High-quality development requires new theoretical guidance of the forces of production, contends Xi Jinping 习近平, speaking at a 31 January 2024 Politburo study session on ‘new forces of production’. These have a leading role in breaking free from the old method of economic growth and the development of forces of production, argues Xi. (Note: forces of production is a Marxist concept referring to a society’s aggregate ability to produce commodities.)
New forces of production are born through revolutionary technological breakthroughs, the innovative allocation of factors of production and deep industrial transition. Their basic meaning is the improved combination of workers, means of labour and subject of labour. (Note: these are the three basic factors of production according to Marx)
New forces of production are nurtured by scitech innovation. Their core marker is large increases in total factor productivity, and are specialised in innovation, comprising advanced forces of production. As such, the logic of new forces of production must be centred on arranging industrial upgrading and industrial chains.
Green development is the baseline of new forces of production, and the two are linked. A scientific approach to innovation must revolve around building a country powerful in
- production
- quality
- internet
- digitisation
- agriculture
Relations of production must match the needs of new forces of production, emphasises Xi (Note: relations of production refers to the structure and system of property rights), and developing them will require further reform, forming new relations of production. A robust distribution of different production factors is needed, giving each factor a share of production according to their participation in the productive process.
Meanwhile, provinces throughout the PRC have been developing new forces of production targets for 2024 during their two sessions, reports 21st Century Business Herald. Government work reports in industrialised provinces like Guangdong, Jiangsu, and Zhejiang have discussed speeding up the development of new forces of production.