After its strategic "opening up" nearly 40 years ago, China has provided a rich source of cheap land and labor, enabling it to make big jumps in consumer manufacturing. After that, China moved towards middle income status and became a major consumer market in itself.
In 2012, China's current leaders acknowledged that the country's "demographic dividend" had begun: the Chinese economy had reached a "turning point", when surplus labor would run out and wages would start rising. At the same time, "opening profits" have also reached maturity, and face barriers to trade around the world.
New Silk Road Initiative
China can benefit from new markets through efforts such as the New Silk Road Initiative, but at great cost. Ultimately, sustained rapid growth requires continuing to move towards the global value chain by implementing further economic reforms and focusing on new technologies.
Focus on new technologies.
The 13th Five-Year Plan of the Chinese Government (2016-2020) reflected its commitment to allocate resources in the market and reduce the costs of doing business. In 2015, the initiatives of the authorities "Made in China 2025" and "Internet Plus" pointed to the determination to take the manufacturing base of the country in the Internet age. Together, the two plans aim to integrate AI, robots and social media into the manufacturing and digitization processes of China's economy and society.Baidu, Alibaba, Tencent & Facebook, Google and Netflix.
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Moreover, according to IrisArch, China's mobile payment already reaches $ 5 trillion, nearly 50 times the United States. In most Chinese cities, e-wallet applications on mobile phones replace cash as the primary means of payment.
Jump in the field of research and technology
China's leap forward in the digital age has been facilitated by a combination of physical and digital technologies and new business models. According to a recent study by Bruegel, China is already spending on research and development as a percentage of the European Union's GDP; now it produces many scientific publications such as the United States and more PhDs in natural science and engineering. By simplifying the exchange of information and facilitating the coordination of complex tasks, Wichat's social media application - which reached 938 million users from the first quarter of 2017 - has contributed to unimaginable productivity gains.
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