(Yicai Global) May 8 -- China will focus on the real economy, science and technology and industrial security in its future development, according to a conference recently convened by the central government.

“A modern industrial system is the material and technological foundation of a modern country, and the focus of economic development should be placed on the real economy to provide solid support for China to realize its Second Centenary Goal,” the Central Commission for Financial and Economic Affairs said in a press briefing on May 5.

Industrial policies in the new stage of development must be improved and better coordinated, priority should be given to safeguarding industrial security and greater efforts need to be made to achieve breakthroughs in core technologies in key areas, it said.

To prevent funds from being diverted out of the real economy, supervision of the financial sector should be strengthened and more guidance given, state-owned investment bank China International Capital said.

Advanced manufacturing is vital to the real economy, according to an executive meeting of the country’s cabinet, the State Council, held the same day. Developing advanced manufacturing clusters is key to promoting industrial upgrading and improving the resilience of the supply and industrial chains.

China’s most urgent task in building a modern industrial system is to ensure secure and stable industrial and supply chains, said Zhang Jie, professor at the Renmin University of China's School of Economics.

The country’s industrial and supply chains are being choked by a lack of high-quality, high-complexity and high-value-added products, Zhang said. It is a task that requires great effort, breakthroughs and support from the government, market and businesses, he added.

More fiscal, monetary, industrial and technology policies, such as tax and fee cuts, will be issued next to promote the development of the advanced manufacturing industry, said Wang Qing, chief macroeconomic analyst at Golden Credit Rating.

New infrastructure for fifth-generation, artificial intelligence and data centers needs to be improved in order to develop core technologies, said Li Wei, associate researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences.

Many sectors, such as integrated circuits, software, apparatus, basic parts as well as high-end numerical control machines, still rely on foreign tech, said Wang Jinzhao, director general at the Research Department of Industrial Economy of the State Council's Development Research Center. Breakthroughs are needed in applications, industrial chains and platform construction.

Editor: Kim Taylor