How did China change from an economic laggard into a booming country? China veteran Kaiser Kuo dives into the country’s 40-year transformation for the World Economic Forum. For example, how it succeeded in becoming a digital giant.
Kaiser Kuo:
The Chinese leadership under Xi Jinping has as its current focus the development of “new quality productive forces.” What this means is that innovation will, it is hoped, become the main driver of growth, with an emphasis on quality growth over quantity or rapid expansion. This translates more concretely into a renewed emphasis on basic science, “hard” tech like new materials and semiconductors, artificial intelligence, supply chain efficiency and rationalization, and green and sustainable development.
Xi Jinping would like to see physicists doing physics, not designing sophisticated financial products or social media advertising algorithms. Whether these strategies will succeed in navigating China through its next phase of development remains an open question, but if China’s past record is any indication, one might reconsider betting against it.
Other developing countries might look to China’s experience for lessons, but the unique combination of historical context, cultural factors, and policy decisions that shaped China’s rise may not be easily replicable. When its own rhetoric speaks so often of “Chinese characteristics,” it may be less likely that China will seek to push its own developmental model, though doubtless some of its features will prove attractive. As China continues to evolve, the world will be watching closely to see how it addresses these challenges and what new pathways it charts for future growth.
Those challenges are numerous: Environmental degradation, rising labour costs, and an aging population pose significant hurdles. Maintaining the stability that has been so crucial for China thus far, while allowing for experimental approaches, improvisation, and creative thinking that will drive economic dynamism in the future will require careful balancing.
Much more at the World Economic Forum.
Kaiser Kuo is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.
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