Answering Questions on China's Economy: Will the Development of Emerging Industries Squeeze Out People's Welfare?

How does emerging industry dialectically unify the relationship between national strength and people’s prosperity?

As China’s emerging industries such as artificial intelligence, digital technology, automation, and chips flourish, a strange argument has also emerged. This voice claims that national resources are overly concentrated in high-tech fields, squeezing the livelihood economy, and even potentially triggering a “spiral decline of the economy.” If this “emerging industries squeeze out people’s livelihoods” argument is not meant to deliberately mislead or confuse, then it reflects a failure to understand the profound internal mechanisms of a new round of technological revolution and industrial transformation, and it severs the dialectical relationship between “national strength” and “people’s prosperity.”

People often say that ordinary citizens pursue nothing more than a stable and happy life. From this, it’s clear that “stability” is the prerequisite and foundation for “happiness.” Similarly, for a country, without national security and industrial independence, people’s well-being is like a tree without roots or water without a source. Imagine if China’s chips rely entirely on imports; once external supply is cut off, the daily use of smartphones, home appliances, cars, and even the operation of the entire social digital system could face threats. If China’s energy security is controlled by others, any fluctuation in international energy prices could directly threaten domestic industry and people’s livelihoods.

Therefore, vigorously developing strategic emerging fields such as chips and aerospace not only helps seize the opportunity in a new technological revolution but also prepares a “basic insurance” for the peaceful life of over 1.4 billion people. Especially amid unprecedented global changes, the complex and volatile international situation, a stable, secure, and predictable domestic industrial foundation is a valuable resource in turbulent times and the most inclusive and fundamental dividend for people’s livelihoods. Without this macro stability, any micro-level improvements in people’s lives are impossible to discuss.

So, do emerging industries really over-absorb resources and squeeze out people’s welfare? First, emerging industries are not “resource black holes” that only absorb without producing but have strong industrial linkage effects and spillover benefits. Analysis shows that one semiconductor job can generate 5.7 additional jobs downstream. A large chip manufacturing project can also drive upstream equipment, materials, and software suppliers, as well as downstream packaging, testing, and application development. The jobs created by a high-end manufacturing plant may be limited, but the surrounding high-value services such as R&D design, data services, inspection and testing, supply chain management, modern logistics, and legal services are not insignificant. It is evident that these high-tech industries not only create a large number of jobs at different levels but also form a new, more resilient industrial chain. This represents a profound transformation and upgrading of employment structure, rather than simply the disappearance of old jobs.

Moreover, the development of China’s technology sector itself is a process of technological inclusiveness. From the outset, China’s AI, semiconductors, and high-end manufacturing have been deeply rooted in the large domestic market. Capital is mainly concentrated in front-end R&D and infrastructure, and once these results mature, they can empower numerous industries and benefit millions at extremely low marginal costs. For example, AI-assisted diagnosis systems greatly improve the diagnostic capacity of grassroots hospitals; AI personalized learning systems provide quality education resources at lower costs; government cloud services based on domestically produced chips and operating systems improve efficiency in grassroots administration, making it easier for citizens to handle affairs; smart city construction makes transportation smoother and urban governance more refined… The “subtraction” of living costs, the “addition” of public services, and the “multiplication” of consumer choices are true reflections of the dividends of emerging industries penetrating into people’s lives.

Currently, some people’s perceived pressure does not stem from technological change itself but from capacity reshaping and interest redistribution during the transition from old to new driving forces. The next step is not to stop investing in technology but to build more agile and fair transmission mechanisms and distribution systems, allowing technological dividends to penetrate faster, broader, and deeper. We see that from central to local levels, a series of policies are being implemented intensively: in response to technological change, China is vigorously promoting nationwide digital literacy and skills enhancement to help more workers cross the digital divide; implementing major projects like “East Data West Computing” to enable more small and medium-sized enterprises and individual developers to use high-quality data and computing power for innovation and entrepreneurship; encouraging leading enterprises to build more open innovation platforms and supply chain systems through special funds, tax incentives, and other policies; establishing more comprehensive unemployment insurance, medical security, and pension systems to build a stronger social safety net… all of these are closely related to ordinary people.

“National strength” and “people’s prosperity” have always been dialectically unified and mutually reinforcing. Every effort China makes in core technology fields is accumulating energy for the widespread improvement of people’s livelihoods in the future. The Chinese-style modernization vessel, carrying the dreams of over 1.4 billion people, gains its formidable strength through overcoming technological challenges and building emerging industry clusters, enabling it to navigate through storms steadily and reach distant horizons.