The Central Economic Work Conference, which was held in Beijing on December 11-12, 2024, and laid out China’s economic priorities for 2025, proposed placing more emphasis on developing the debut economy. This has been raised in the Resolution of the Central Committee of the Communist Party of China (CPC) on Further Deepening Reform Comprehensively to Advance Chinese Modernization, adopted at the Third Plenary Session of the 20th CPC Central Committee on July 18.

The debut economy includes a range of economic activities related to the launch of new products, new business models, new services and new technologies, and the opening of new flagship stores. It covers the whole-process chain development of enterprises, from product and service launches to setting up new research and development centers and establishing new company headquarters.

Why is China stressing the promotion of the debut economy at this moment? It’s due to the current economic growth structure the country is promoting, which lays increasing emphasis on consumption.

After reform and opening up began at the end of the 1970s, the Chinese economy relied mainly on investment and foreign trade, but this economic growth model, which brought serious pollution and heavy dependence on exports, was unsustainable. Therefore, China has begun to transform the economic growth pattern, raising the demand for green and sustainable development, and consumption has gradually become a major engine driving China’s economic growth.

In recent years, expanding domestic demand and boosting consumption have been key goals of China’s economic policies. Policies introduced to achieve them include providing subsidies to encourage replacement?of old cars and household appliances, developing the holiday economy, and boosting household spending on recreation, sports and tourism.

The debut economy, in addition to highlighting “debuts,” also concerns the entire process of chain development and the establishment of complete networks, from research and development to release, display, promotion and sales of new products. This chain development not only brings short-term benefits to a city’s economy such as new product debuts and brand displays, but also establishes an industrial ecosystem around the new products, new business forms and models, new flagship stores and new headquarters. Moreover, the debut economy facilitates fashion, quality and new trends, which are in line with the push to upgrade consumption and high-quality development, and are an important demonstration of a region’s business vitality, spending power, innovation ability, openness and international competitiveness. The debut economy is therefore necessary for China to expand domestic demand and boost consumption.

The debut economy can help enterprises introduce new technologies, services and business forms, promote industrial innovation and upgrading, as well as enhance brand image and core competitiveness. For a city, a prosperous debut economy helps create a sound business environment, rich resources for innovation, well-developed infrastructure and efficient public services. All these can enhance a city’s reputation, and attract more high-profile professionals, innovative enterprises and high-quality capital, improving the city’s competitiveness. The debut economy also meets the needs of consumers for novelty and improved quality of life, and diverse new products and services stimulate spending potential. These benefits from the debut economy are needed for China’s high-quality development.

Many large international enterprises have already established their research and development headquarters in China, contributing to the debut economy. An open China and its enormous market are highly attractive to international corporations. Now, many Chinese cities have planned to build and improve ecosystems for the debut economy, making them more conducive to innovation and attracting more businesses.