Chinese liquor companies have been developing new products, reaching younger consumers and creating new drinking occasions. Illustration: Chen Xia/GT

As some high-tech companies have risen to the top of China's market capitalization rankings, Kweichow Moutai - a distiller that was once China's most valuable listed firm by market capitalization - has sparked debate in some Western media outlets over whether China's traditional industries are losing ground to technology-driven growth. The question itself rests on a flawed zero-sum view of economic transition. China's economic development is not a contest between old and new growth drivers in which one has to replace the other.

Interestingly, several years ago, the same zero-sum logic produced a very different conclusion. At a time when Kweichow Moutai had overtaken some technology companies to become China's most valuable listed company, some foreign media commentators took it as a sign that China's technology sector lacked sufficient room for growth.

If a liquor company's success can be used to suggest that China's technology sector is falling behind, and the rise of technology companies can later be used to argue that traditional industries are fading, the problem may lie not with the economy itself, but with the zero-sum framework used to interpret it.

The mistake is to see China's economic transition as a race in which new industries can only advance by pushing traditional sectors aside. In reality, the two are closely linked. Traditional industries can gain new vitality through technological upgrading, while emerging sectors often grow from the foundations built by established ones.

The liquor industry itself shows why such a zero-sum view falls short. The industry may have deep roots, but it is not frozen in the past. Companies have been developing new products, reaching younger consumers and creating new drinking occasions.

The liquor industry has been undergoing changes that go beyond its traditional image. Companies are increasingly seeking younger consumers through lower-alcohol products, fruit-based drinks, collaborations with tea brands and even combinations such as liquor-infused ice cream. More importantly, they are expanding beyond conventional business gatherings into more everyday settings, from casual meet-ups and outdoor activities to cultural experiences.

Technology is increasingly driving these changes. Sustained investment in research and development is reshaping the industry, from brewing processes to biotechnology, environmental management and resource recycling.

The liquor industry is going through a period of adjustment. Yet such pressure can serve as a catalyst for adaptation and innovation. The sector is home to companies with strong foundations. Kweichow Moutai, for example, maintained a solid financial position in the first half of the year, with revenue rising 1.3 percent year-on-year and its cash balance increasing 46.18 percent from the start of the year.

The evolution of the liquor industry is part of a wider story of economic upgrading. It reflects changing consumer preferences, with people increasingly seeking higher-quality, healthier products and more diverse experiences. Technology has played an important role in this process, helping established industries adapt and evolve.

The transition between old and new growth drivers is therefore not about abandoning existing strengths. Many traditional industries already have strong foundations, and technology can help them build on those advantages. Short-term pressure is inevitable during periods of adjustment, but it does not change the broader direction of development. In many cases, such pressure can encourage industries to adapt, innovate and move forward.

Technology is one of the forces driving this transition, but it does not belong only to emerging industries. It is also helping traditional sectors upgrade and create new growth opportunities. The transition between old and new growth drivers is not a simple switch from one to the other, but the joint development of both.

Upgrading traditional industries and nurturing emerging ones are not opposing goals. Treating them as separate camps reflects a misunderstanding of how economic transformation works. The rise of technology industries does not take opportunities away from traditional sectors. The liquor industry, for example, is also seeking younger consumers, including those in technology fields. Economic development is not a zero-sum game.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn