by Chen Xiaotong

China will accelerate the development of advanced manufacturing, smart industries, and the digital economy as part of its push for “new productive forces,” Premier Li Qiang said in his annual government work report at the opening meeting of the third session of the 14th National People's Congress (NPC) on Tuesday.

Delivering the report at the Great Hall of the People, Li reviewed China’s economic performance in 2024, highlighting an 8.9 per cent increase in high-tech manufacturing output and a 7.7 per cent rise in equipment manufacturing. The country’s new energy vehicle (NEV) production exceeded 13 million units last year, according to government data.

The China Association of Automobile Manufacturers (CAAM) reported that China’s overall vehicle production and sales surpassed 31 million units in 2024, with NEV sales topping 12.8 million units, maintaining the country's decade-long lead in global NEV sales. The strong growth was attributed to policy support and an accelerated industrial transformation.

Looking ahead, Li said China will push forward industrial modernisation by integrating technological and industrial innovation, expanding advanced manufacturing, and upgrading traditional sectors. He underscored the importance of the digital economy, pledging to advance the “AI+” initiative, support large-scale AI applications, and accelerate the development of intelligent connected vehicles, AI-powered smartphones and computers, and smart manufacturing equipment.

The rapid transformation of the auto industry, driven by electrification and artificial intelligence, has turned vehicles from traditional transport tools into mobile smart spaces. During the ongoing NPC session, smart NEV development has been a key topic among industry representatives.

Lei Jun, founder and CEO of Xiaomi and an NPC deputy, proposed three measures to enhance the smart NEV ecosystem, including improving charging infrastructure interoperability, standardising in-car hardware protocols, and encouraging automakers to open their smart ecosystems.

Feng Xingya, chairman and general manager of GAC Group and an NPC deputy, called for stronger policy support for battery-swapping technology, a more coordinated national rollout, and unified industry standards to accelerate adoption.