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China: from low-cost production to high-quality production

China: from low-cost production to high-quality production

In many The idea was established that Chinese products were cheap and of low or intermediate quality, something that was true a few years ago.

But anyone who knows the situation today will know that China has changed a lot and will continue to evolve in the coming years.

It is important to put this in context, through some data, about what the situation of the Chinese economy is today.

China continues to remain the largest engine of the world economy, especially since the post-pandemic recovery, and has contributed a little more than 30% of global economic growth in 2023.

Chinese economic growth alone generates a little less than a trillion dollars, which is equivalent to the total annual GDP of a medium-sized country (and much more than the annual GDP of our country).

The urbanization of the population in China continues to constantly increase, currently managing to exceed 66%, a number that almost doubles the values ​​it had in the year 2000. But the number of Internet users in China has already exceeded 1,000 million,

A few years ago, China already surpassed the 400 million people that make up the middle class, and will seek to double this number within 10 or 15 years.

To achieve this, China will launch a program to stimulate consumption and create jobs, something that has been affected in recent years by the pandemic, the real estate crisis and the international context.

The stimulation of consumption will focus on digital consumption and sustainable consumption. And job creation, especially youth employment, and the promotion and support of young entrepreneurs.

Already in 2017, Xi declared that China’s economy was moving from a period of rapid growth to a stage of high-quality development, where quality comes before quantity.

The Chinese economy will no longer be driven primarily by traditional factors such as labor, capital and land, but by new innovative factors such as information technology, big data and artificial intelligence.

High-quality development involves achieving zero-carbon emissions goals as soon as possible, and continuing to deepen the deployment of renewable energy, (currently China is the world leader in this matter, of the total renewable energy generation installed in 2023 in around the world, China contributed more than 50%), and the use of electric vehicles (China is a world leader and its ByD company already surpassed Tesla in global sales during the last quarter of 2023).

On the other hand, the already existing link between science and technology and economy, and the integration between industry and universities and research centers, are being promoted. China’s investment in research and development has been increasing at a rate of 10% annually.

Some of China’s latest great achievements linked to technological development are the realization of the first commercial flight of a large aircraft manufactured in China, the C919 (potential competitor to Boeing and Airbus in the future); the manufacture of the first large cruise ship for more than 3,000 passengers; the development of the engine with record performance for future manned lunar missions; that more than half of cell phone users use the 5G network and exceed 1,000 million Internet users.

Without a doubt, the China of the present is not the one of a few decades ago and it will not be the same in the future, where there will be more and more quality Chinese brands with international recognition and global influence.

Political scientist (University of Palermo). PhD in International Economics (University of International Business and Economics, Beijing, China)

Source: Ambito

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