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Digital Trade An Immense Opportunity for China

Oct 29-2021   



After having three editions online as a result of the pandemic, the China Import and Export Fair (also known as the Canton Fair) embraces an online and offline combination this year. In an exclusive media interview, Prof. Yu Miaojie of the NSD believes that such a new format attests to the ascendance of the digital economy. He’s the CCP Party Chief at the NSD and consultant for MOFCOM on economic and trade policies.

 

The digital trade, part of the digital economy, might afford China the opportunity to overtake Europe and the US, says Prof. Yu. Even though China has invested heavily in capital-intensive industries, it should also seek out industries in which it possesses comparative advantages. One prime example is the digital trade, where China has claimed a position on the same starting line as Europe and the US. When factoring in an enormous and unified domestic market, China are highly likely to create new comparative advantages and be the first to zip round the corner, says Prof. Yu.

 

By August 2021, China has posted positive growth in foreign trade for 15 months in a row. China’s pivotal position in the global value chains offers part of the explanation, so does the fact that many countries are yet to fully recover from the pandemic. Looking forward, Prof. Yu advises Chinese firms to make timely adjustments in light of the ever more complicated global environment. A key step would be to diversify export destinations by actively exploring emerging markets, particularly the other four BRICS countries. In addition, companies should position their products in line with market demands.

 

Over the next 20 years, China will continue to derive competitiveness from its supersize market and the comparative advantages born out of scale economy. Cheap labor has ceased to be its trump card; by learning from the mature practices of some developed countries, China can build up a large unified market which will enable the companies to reduce the fixed costs of production and increase profits. To this end, more needs to be done to improve the business environment and demolish internal trade barriers.

 

To deepen cooperation along global value chains, China should proactively utilize CPTPP, TTIP, and China-Europe CAI, with the aim of forging a mutually beneficial, open, and collaborative business environment, says Prof. Yu.

 

Digital Trade An Immense Opportunity for China

Oct 29-2021   



After having three editions online as a result of the pandemic, the China Import and Export Fair (also known as the Canton Fair) embraces an online and offline combination this year. In an exclusive media interview, Prof. Yu Miaojie of the NSD believes that such a new format attests to the ascendance of the digital economy. He’s the CCP Party Chief at the NSD and consultant for MOFCOM on economic and trade policies.

 

The digital trade, part of the digital economy, might afford China the opportunity to overtake Europe and the US, says Prof. Yu. Even though China has invested heavily in capital-intensive industries, it should also seek out industries in which it possesses comparative advantages. One prime example is the digital trade, where China has claimed a position on the same starting line as Europe and the US. When factoring in an enormous and unified domestic market, China are highly likely to create new comparative advantages and be the first to zip round the corner, says Prof. Yu.

 

By August 2021, China has posted positive growth in foreign trade for 15 months in a row. China’s pivotal position in the global value chains offers part of the explanation, so does the fact that many countries are yet to fully recover from the pandemic. Looking forward, Prof. Yu advises Chinese firms to make timely adjustments in light of the ever more complicated global environment. A key step would be to diversify export destinations by actively exploring emerging markets, particularly the other four BRICS countries. In addition, companies should position their products in line with market demands.

 

Over the next 20 years, China will continue to derive competitiveness from its supersize market and the comparative advantages born out of scale economy. Cheap labor has ceased to be its trump card; by learning from the mature practices of some developed countries, China can build up a large unified market which will enable the companies to reduce the fixed costs of production and increase profits. To this end, more needs to be done to improve the business environment and demolish internal trade barriers.

 

To deepen cooperation along global value chains, China should proactively utilize CPTPP, TTIP, and China-Europe CAI, with the aim of forging a mutually beneficial, open, and collaborative business environment, says Prof. Yu.