New words and concepts highlighted at Two Sessions

The Government Work Report delivered by Premier Li Qiang at the ongoing China's Two Sessions in Beijing not only highlights key targets, but also new words and concepts that caught the attention of the public.

Among these are embodied artificial intelligence, gazelle companies, zero-based budgeting and investing in the people.

Embodied Artificial Intelligence 具身智能

What does the Government Work Report say:

Embodied Artificial Intelligence is among one of the specific high-tech sectors that the government is planning to set up a growth scheme for in forward-looking industries such as bio manufacturing, 6G and quantum technology.

What does it mean:

Integrating artificial intelligence means embedding AI capabilities into physical entities such as robots to allow devices to process data and make decisions autonomously.

There's been increasing demand for autonomous systems across different industries such as manufacturing, health care, logistics, and the automotive sector.

Gazelle companies and unicorn enterprises 瞪羚企業(yè)

What does the Government Work Report say:

The government seeks to cultivate innovative enterprises with tiered and tailored measures, to promote the development and growth of specialized, high-end and innovation-driven SMEs (small and medium-sized industries) that provide distinctive products or services.

What does it mean:

A gazelle enterprise is characterised by its fast-growing revenue sales, typically generating at least a 20 percent revenue growth over four years after starting with a base revenue of at least US$100,000.

While most such firms are in the tech sector, some are also in the retail, apparel, food and beverage industries. The priority among these gazelle companies is hi-tech start-ups.

A unicorn enterprise, meanwhile, is a privately held company with a market valuation of at least US$1 billion.

China is seeking to accelerate the development pace of unicorn and gazelle enterprises, and allow more companies to speed up development in new fields and niche segments. This reflects the growing emphasis on products and services offered by those with higher agility to respond to emerging trends and evolving market demands.

Zero-based budgeting 零基預(yù)算

What does the Government Work Report say:

Pilot reforms of zero-based budgeting will be carried out at select central government departments and deeper reforms at provincial level will also be implemented, where the new budgeting process proposes to allocate funding based on program efficiency and necessity rather than budget history.

What does it mean:

Zero-based budgeting is a budgeting method that requires all expenses to be justified and approved in each new budget period.

Central and local-level governments will draw up a budget in which all expenses must be justified for a new period or year starting from zero and the actual needs, versus starting with the previous budget and adjusting it as needed.

Investing in the people 投資于人

What does the Government Work Report say:

"… put more investment and resources into people's livelihood, enhance employment, increase income and form a virtuous circle of economic development and the improvement of people's livelihood."

What does it mean:

More resources will be allocated for human development and protection, with a greater focus on people's livelihoods and a better life quality, so that more people can have access to the fruits of reform and development.

This means responding to people's growing aspiration for a better life, higher demand for good quality physical goods and service, and a more balanced approach for increase in economic size and human development.

6G

What does the Government Work Report say:

Forward-looking industries like 6G (sixth generation communication) has been included in the government's growth mechanism, alongside quantum technologies and bio manufacturing.

What does it mean:

China has set out a goal to realize the commercialization of 6G technology by 2030.

With an estimated data connection speed 10 times that of the 5G network, the 6G network is expected to be deeply integrated with segments such as AI, holography communications and smart driving.

Good housing 好房子

What does the Government Work Report say:

The government shall continue to respond to people's needs for high-quality living, improve housing standards and specifications, and promote the construction of safe, comfortable, green, and smart "good houses".

What does it mean:

The four features for good housing are: safe, low-carbon, green, and smart, meaning people living in healthy settings, saving more housing cost for residents and saving energy for society, and at the same time making it more convenient for residents to use various facilities with a sense of safety and security.