In a recent press conference held by the Beijing Development and Reform Commission, local officials announced that during the first three quarters of 2023, the combined value-added output of the information, finance, and industrial sectors accounted for over half of Beijing’s GDP, contributing more than 80% to the city’s overall economic growth. Specifically, the information services sector saw an impressive year-on-year growth of 11.9%, while the financial sector grew by 6.6%. The industrial sector, driven by industries such as electronics and automotive, recorded a 6.8% increase in added value compared to the previous year.
According to a spokesperson from the commission, Beijing’s economy has remained stable, showing progress even amidst new challenges in the second half of the year. The city has adopted a proactive approach, balancing stability with progress, and prioritizing reforms to enhance growth, adjust the economic structure, mitigate risks, and improve the livelihoods of its citizens. They emphasized efforts to deepen “five-pronged” initiatives and align with the new development framework, which is accelerating the formation of new productive forces and solidifying high-quality development.
The effectiveness of policies targeting key sectors is increasingly evident. Beijing has been actively planning significant projects in areas deemed “critical,” striving to secure funding through long-term special bonds. Additionally, there has been a push to support the renewal of equipment and promote a trade-in scheme for consumer goods. From January to September, investment in equipment acquisition surged by 34.1%, while retail sales of home appliances and audiovisual equipment increased by 10.2%. Notably, the retail sales of new energy vehicles jumped by 22.4%. As of October 20, 2023, approximately 1.845 million households had qualified for the appliance replacement subsidy, with over 36,000 applications for vehicle scrappage and replacement.
The policies regarding real estate have also been refined, with measures to lower down payments and interest rates, and to adjust purchase restrictions. These actions have fostered a new development model in the real estate sector, as evidenced by a slight decrease in the sales area of commercial housing by just 0.2% compared to the first half of the year, and a noticeable increase in transactions for new and second-hand homes during the recent National Day holiday.
Beijing’s financial policies are increasingly focused on serving the real economy. The city has initiated the “Smooth Financing Project,” promoting key projects with a total investment exceeding 350 billion yuan. As of the end of September, the balance of medium and long-term loans to the manufacturing sector had risen by 12.4%, while loans for small and micro enterprises increased by 14.5%, both significantly outpacing overall loan growth. At the recent 2024 Financial Street Forum, new policies were unveiled to inject fresh vitality into the capital’s high-quality development.
The region’s new growth drivers are also showing promising results. The construction of Beijing as an international science and technology innovation center is progressing steadily, with 77 national key laboratories established in the city, accounting for about 28% of the national total. Nine new research institutions have been set up, and strategic technological capabilities continue to strengthen, leading to innovative breakthroughs in fields such as crystal preparation. Furthermore, 27 innovation consortiums and 18 technology innovation centers have been formed, with R&D expenditures for large and medium-sized enterprises increasing by 7.8% from January to August.
Beijing is rapidly developing as a global benchmark city for the digital economy, expanding data infrastructure into districts like Xicheng and Mentougou. The city boasts 55 5G base stations per 10,000 people, the highest in the country, supported by an artificial intelligence data training base with 7,000GB of data. The “AI+” action plan has introduced 94 large-scale AI models, leading the nation in this regard. From January to September, the value added by the digital economy grew by 7.6%.
High-tech industries in Beijing are gaining momentum, with value added in high-tech manufacturing increasing by 8.3% and high-tech service sector revenues climbing by 9.6%. Significant breakthroughs have been achieved in integrated circuit technologies, and the production of new energy vehicles has increased by 5.5 times. Collaborative innovation programs in the pharmaceutical sector are accelerating, with notable expansions from foreign pharmaceutical companies like Novartis and Eli Lilly. Beijing has also established its first low-altitude economic industrial park and launched a drone delivery route.
On the collaborative front, efforts within the Beijing-Tianjin-Hebei region are deepening. The capital’s functions are being continuously enhanced, with initiatives for coordinated innovation and industrial collaboration underway. Projects such as the successful bid for UNESCO World Heritage status for Beijing’s central axis and the launch of themed tour bus routes are notable achievements.
Moreover, the establishment of the Xiong’an New Area’s headquarters for China Star Net has been completed, with the Zhongguancun Science and Technology Park registering 114 companies. Key services have been integrated seamlessly across the region, and developments in the city’s sub-center are gaining traction with new universities and healthcare facilities opening.
The Beijing-Tianjin-Hebei National International Technology Cooperation Base Alliance has also been established, highlighting collaborative achievements with 271 technology results and patent technologies released jointly. Between January and September, technical contracts flowing from Beijing to Hebei and Tianjin totaled nearly 4,000, with a transaction value of 48.5 billion yuan, marking an 18.4% growth year-on-year.
Li Jinya, Deputy Director of the Regional Development Research Institute at the Beijing Economic and Social Development Research Institute, noted that the new productive forces in Beijing are accelerating their release. This is largely due to the city’s ongoing reforms aimed at optimizing the investment environment and expanding opportunities for businesses. Innovative measures have been introduced to leverage government investments to stimulate greater economic activity, particularly in pivotal industries that drive overall economic vitality.
Additionally, comprehensive financial services covering the entire lifecycle are being offered to enterprises focused on new productive forces. Despite a general decline in national venture capital, Beijing has established eight municipal government investment funds totaling 100 billion yuan this year, aimed at boosting market confidence and sparking social investment. For larger enterprises and significant projects, the capital’s state-owned banks have been instrumental in facilitating financing for key initiatives, with a comprehensive promotion of 197 major funding needs totaling over 350 billion yuan.
Li emphasized that Beijing’s environment for investment in high-tech industries continues to improve, continuously expanding opportunities for corporate investment and driving growth in high-tech sectors.
