Meet the New "New Trio” ，China’s Answer to Tech Revolution丨CBN Perspective

By Stephanie LI丨SFC, 21st Century Business Herald

Not long ago, China’s "new trio" of exports – new energy vehicles, lithium batteries, and solar panels – turned "Made in China" into a label for green manufacturing. Today, artificial intelligence, robotics, and innovative pharmaceuticals emerged as the new "new trio", marking a pivotal transition for China’s economy that powered by technological breakthroughs.

To anyone tracking China’s rise, these three sectors are no longer just market darlings, but have formed the backbone of its high-quality development and hold the key to redefining Chinese assets on the global stage.

Technology companies now make up over a quarter of China's A-share market as the country steps up support for sci-tech innovation, China Securities Regulatory Commission (CSRC) Chairman Wu Qing announced at a recent press conference. The market cap of tech stocks is significantly higher than the combined market cap of the banking, non-bank financial, and real estate sectors, Wu said. This signals a clear paradigm shift: robots, AI, and innovative drugs have officially taken over as the new growth engines of China’s economy.

The rise of the new "new trio" is no accident. Globally, technological competitiveness has become the cornerstone of national strength, while domestically, the land-finance growth model has run its course, with AI breakthroughs taking the wheel to drive on the lane of new productive forces.

Each of these three sectors fills a non-negotiable niche: Robotics serves as the "physical engine" of smart manufacturing, addressing labor shortages and boosting efficiency. AI acts as the "digital brain," supercharging everything from factory operations to drug R&D. Innovative pharmaceuticals stand as the "value core" of life sciences, safeguarding public health while generating high returns to fund further innovation.

Let’s examine the market dynamics. In the robotics sector—particularly humanoid robots, viewed as the next transformative smart terminal after computers, smartphones, and new energy vehicles—A-share leader Inovance Technology boasts a market cap exceeding 200 billion yuan. Sanxie Motor surged by more than 785% on its debut trading day, while unlisted players like UBTECH and DeepRobotics have also become darlings of capital.

In AI, multiple enterprises already hold a market cap of over 100 billion yuan. The colloquial “Ji Lian Hai" refers to Cambricon, Foxconn Industrial Internet, and Hygon—firms focusing on AI computing chips and infrastructure. Their order books and profit margins hit record highs in H1 2024. Meanwhile, “Yi Zhong Tian" denotes Eoptolink, Zhongji Innolight, and Tianfu Communication, whose optical modules are in high demand for high-speed data transmission in large AI models, driving simultaneous growth in both earnings and stock prices.

For innovative drugs, Hengrui Pharmaceuticals is approaching a 500 billion yuan market cap, with WuXi AppTec, Hansoh Pharma, and Innovent Biologics each exceeding 100 billion yuan, with their business models shifting from "capital-intensive investment" to "profit-generating operations."

In a global perspective, China’s position in these three sectors is evolving from "catch-up" to "leadership."

Robotics leads the pack, ranking among the global first tier as it boasts a complete industrial chain, the world’s largest market, and advanced localization of components, though high-end servo motors still rely on imports as Japanese firms control 60% of the servo market.

AI is in "overall catch-up, with leadership in specific applications"—excelling in computer vision and speech recognition, but facing gaps in core chips (NVIDIA dominates 80% of the global market) and framework ecosystems.

Innovative pharmaceuticals are moving from "follow-up" to "catch-up," with overseas transaction volumes surging, a sign of international recognition for R&D capabilities, yet challenges remain in target discovery and basic research translation.

But these bottlenecks are far from dead ends; they’re precisely the arenas where China’s strengths will come to the fore. The solution is clear: Unlock cross-sector data to unleash AI’s full potential; speed up approvals for life-saving technologies; build more computing hubs and train interdisciplinary talent; implement "regulatory sandboxes" to allow room for innovation experimentation, avoiding "one-size-fits-all" policies that restrict development; and join global tech standard-setting to ensure China’s voice is heard.

The shift from the old "new trio" to the new "new trio" reflects the intrinsic logic of China’s industrial upgrading. While challenges lie ahead, the performance of leading enterprises, supportive policy rollouts, and tangible technological breakthroughs all indicate that capital is casting a "vote of confidence" with real investment.

For international investors and collaborators, this is likely the masterplan for the upcoming wave of tech-driven expansion. Leveraging its vast market expanse, targeted policy impetus, and robust industrial ecosystems, China’s new "new trio" stands poised to transmute present-day trials into triumphs of tomorrow.

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

Presented by SFC