Summary of Key Points
In the first half of this year, emerging industries such as artificial intelligence (AI) and integrated circuits maintained high growth rates—with the AI sector growing by over 30%, integrated circuit production increasing by 23.1%, and exports rising by 88.7%—becoming significant drivers of China's economic growth. The Politburo meeting for the first time referred to these industries as "emerging pillar industries," elevating their status from mere growth points to essential pillars of the economy. Policies will now focus on promoting their scaled development across various aspects, including technological breakthroughs, practical applications, and resource allocation. Central state-owned enterprises (SOEs), with their rich array of use cases, are accelerating the adoption of AI technologies by opening up their platforms (for example, through security robots). In the future, these emerging pillar industries could create markets worth trillions of yuan and contribute to high-quality economic development.
1. The Upgrade in Status of Emerging Pillar Industries and Increased Policy Support
Previously, emerging industries were merely seen as areas for cultivation and growth. However, the recent Politburo meeting has officially recognized them as "emerging pillar industries," akin to giving them official status from potential players to key pillars of the economy. This means the state will allocate more funds, resources, and policy support to these sectors.
The National Development and Reform Commission (NDRC) has identified six emerging pillar industries: integrated circuits, aerospace, biomedicine, low-altitude economy, new energy storage, and intelligent robotics. These industries are expected to reach a scale of nearly 6 trillion yuan by 2025 and could exceed 10 trillion yuan by 2030. The State Council's executive meeting has also called for a comprehensive approach to promote their scaled development, focusing on both breaking through core technologies (such as critical components for chips) and allowing regions to develop according to their respective strengths (for instance, some areas may specialize in integrated circuits while others focus on the low-altitude economy). Additionally, there is an emphasis on encouraging enterprises to put these technologies into practical use.
2. Integrated Circuits: Double Growth in Production and Exports, with Technological Breakthroughs
In the first half of this year, integrated circuit production increased by 23.1% year-on-year, and exports reached a new record for three consecutive months. The export value grew by 88.7%, accounting for nearly one-third of China's total exports. This indicates that not only is there an increasing domestic demand for these chips, but they are also being sold in large quantities overseas.
Technological advancements have been made, with Chinese companies leading the development of the "Taolaw" standard, which represents a domestically developed integrated circuit technology framework. The state has also initiated a series of major projects worth hundreds of billions of yuan, covering the entire production chain from design to manufacturing and testing. In short, China is moving from being dependent on imported technologies to producing its own chips and selling them for profit.
3. AI Industry: Over 30% Growth, with Advancements in Computing Power and Data
The AI industry grew by over 30% in the first half of this year. Specific developments include:
- Enhanced computing power: A domestically produced AI supercluster with 100,000 computing units has been put into use, increasing intelligent computing power to 2.8 times that of last year and nearly tripling the processing speed, enabling more complex AI tasks.
- More powerful models: Domestic companies have released open-source large models with trillions of parameters, attracting over 10 billion downloads. These models are becoming increasingly compatible with domestically produced chips.
- Abundant data: More than 120,000 high-quality datasets are available for AI development, providing the necessary "fuel" for advanced AI systems.
The next focus will be on innovation (developing smarter models), practical applications (integrating AI with industries like manufacturing and healthcare), and building a supportive ecosystem for widespread adoption of AI technologies.
4. SOEs as a Rich Source of AI Use Cases
SOEs possess many critical use cases, such as power grids, security, and manufacturing, which serve as ideal testing grounds for AI applications. In July, the State-owned Assets Supervision and Administration Commission (SASAC) launched a special initiative to promote AI adoption, opening up around 100 use cases initially, with additional high-value cases and datasets being made available later on. For example, Guotou Intelligence developed 100 security robots that have transformed the security industry from manual surveillance to human-machine collaboration. The rigid demand in the security sector makes it a perfect case study for AI implementation.
SOEs are also involved in building open-source communities and intelligent software factories, sharing their resources with upstream and downstream companies to foster the growth of the AI industry.
5. Future Directions: Focusing on Core Technologies and Practical Applications
The state will focus on three key areas:
1. Breaking through core technologies: Addressing bottlenecks in fields like large models and intelligent systems.
2. Promoting practical applications: Establishing AI pilot projects and opening up high-value use cases (such as healthcare and industrial applications) to bring technology from the laboratory to the market.
3. Strengthening resource support: Improving regulatory frameworks and providing necessary resources (funding, land, talent) to enable regions to develop according to their strengths.
These measures aim to turn emerging pillar industries into true pillars of the economy, transforming China's industrial structure from large-scale to high-quality and competitive.
This news highlights that emerging industries are no longer just niche areas but are taking on crucial roles in driving economic growth. From policymakers to enterprises, there is a concerted effort to transform technologies like AI and chips into tangible sources of productivity. In the future, China's economic growth will increasingly rely on these innovative sectors.