'Innovative economy' to lead next decade, experts say

The "innovative economy", which integrates the internet and innovative technology with consumption, industry, enterprise services, high-end manufacturing and biological medicine, will be key to the whole economy in the next decade, financial institution China Renaissance said, as it released its China Innovative Economy Report 2021 on Wednesday in Beijing.

Today's world is experiencing unprecedented changes because of the COVID-19 pandemic, and the arising uncertainties present both risks and opportunities, said economists of the institution, adding the innovative economy would enable industries to improve their intelligence level and efficiency, as well as assist industrial upgrading and self-innovation.

New business modes driven by the pandemic, new consumer groups, new industrial chains, a new artificially intelligent era and new smart health care will be the five major trends of the country's economy over the next decade, the experts said.

The pandemic-stricken 2020 triggered new business modes, such as e-commerce, long-distance working, online education, online entertainment and internet healthcare. As people chose to stay at home during the pandemic to stay safe, active users of fresh food online platforms saw skyrocketing growth, with more than 70 percent of online consumers purchasing fresh food online at least once after the pandemic and 30 percent of consumers using fresh food e-platforms twice or more a week.

The consumption scale of the Generation Z population, the age group born between 1995 and 2009, will increase four times to 16 trillion yuan ($2.5 trillion) by 2035, making this age group a vital factor for future growth in the consumption market, the report said.

Identity, China-made goods, appearance, internet and health are the key factors concerning the Generation Z population when making purchase choices. Consumer brands and service providers of domestic cosmetics, upscale food and beverages and lifestyle toys are fields worth noting, per the report.

China Renaissance believes artificial intelligence technology may lead the fourth scientific and technological revolution, estimating AI-related market scale to exceed $200 billion by 2025. It expects AGI, or artificial general intelligence, will be gradually realized in the next 20 years, with driverless service altering the auto industry and people's travel modes tremendously.

As to the new industrial chain, semiconductors, science and technology hardware and software are about to bring great opportunities, with trillion-level market scale. The report also concluded the healthcare industry will become more intelligent with the rapid development of genetic technology and AI Medicare.