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Innovation assumes important role to propel trade

China Daily | Updated: 2025-11-06 00:00
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Editor's note: To develop new advantages in China's international economic cooperation requires the vigorous advancement of new quality productive forces. Zhao Ping, dean of the Academy of China Council for the Promotion of International Trade, told the 21st Century Business Herald that this necessitates optimizing the allocation of innovation resources and cultivating new engines for the high-quality development of foreign trade. Below are excerpts from the interview. The views don't necessarily represent those of China Daily.

Innovations in technology and in foreign trade are closely interconnected and mutually reinforcing. On the one hand, technological innovation is a key force in breaking through the constraints of traditional economic growth and driving the transformation of foreign trade dynamics. As a core element in the development of new quality productive forces, technological innovations can foster new forms, models and momentum in foreign trade.

On the other hand, innovations in foreign trade provide application scenarios for technological breakthroughs. The application of major scientific and technological achievements in industries can trigger a significant transformation in productivity. Therefore, it is necessary to accelerate the deep integration of technological innovation with foreign trade innovation.

Developing new advantages in China's international economic cooperation relies fundamentally on the vigorous advancement of new quality productive forces. First, it is essential to firmly anchor technological innovation as the core element and strengthen institutional support for emerging fields and future industries. A sound legal and market environment must be created to protect and encourage innovation. Through technological innovation, the country can continuously empower industrial upgrading and foster the robust growth of new foreign trade models.

Second, it is crucial to focus on building a modern industrial system as the main direction of future efforts. By promoting deep integration between innovation and industries, cutting-edge technologies can be applied to the key links of supply chains, transforming and upgrading traditional trade approaches while nurturing and expanding new business forms in foreign trade.

Finally, China needs to uphold high-standard opening-up, steadily advance institutional opening-up, and engage in international economic cooperation and scientific and technological collaboration at a higher level. This will broaden international circulation and create stronger momentum for innovation-driven foreign trade growth.

Geopolitical conflicts and trade protectionism have created new uncertainties for global commerce. It is therefore necessary to firmly advance the establishment of a new development paradigm and expand domestic consumption. It is essential to create a virtuous cycle where new demand spurs new supply and new supply leads to new demand. Meanwhile, the promotion of positive interactions between consumption and investment, and between supply and demand, can enhance the endogenous drivers and reliability of domestic circulation.

Efforts should be made to coordinate moves to strengthen the domestic market and build China into a leading trading power. Taking the initiative to open China's door wider and steadily advance institutional opening-up will drive reform and foster development, enabling new breakthroughs in the dual circulation of domestic and international markets.

China's development of new energy vehicles has set a strong example. The country has adopted a forward-looking strategy at the national level to accelerate the deep integration of technological and industrial innovation. Leveraging the strengths of the new national system for mobilizing nationwide resources, China has proactively generated more original and disruptive technological achievements.

Moreover, China continues to advance high-standard opening-up and expand international circulation, achieving remarkable progress in NEV exports and attracting foreign investment. From January to August 2025, China accounted for 68 percent of the global NEV market. The increasingly complete green industry and supply chains for NEVs in China are attracting more leading global companies to increase their investment in the country.

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