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Tech Will Power New Growth Cycle

Jan 28-2022   



Starting from 2022, the Chinese economy would see a new decade-long growth cycle propelled by innovations and technological advancement, in lieu of the usual driving forces of export, real estate, and investment, said Prof. Yao Yang, Dean of the NSD, in a media commentary.

 

He believed that China had been heavily underrated in its technological development and the next 10-30 years would be its ‘highlight era’ when the country’s tech prowess led the world in such fields as AI, automation, and new energy vehicles. He based his argument on the fact that many Chinese companies had become ‘invisible champions’ in various sectors over the last decade, which formed the innovative advantage for China to ignite a new growth cycle.

 

Meanwhile, in light of the dramatic adjustments that had been undertaken to the economic structure, Prof. Yao called for more stable policies and more solid industries. In terms of the former, he cautioned against policy adjustments that were too rapid-fired or dramatic and caused negative shifts in expectation. Examples of such negative consequences might be decreasing investment in manufacturing in the second half of 2021 and the poor performance of the real estate sector. As of the latter, Prof. Yao highlighted the need for private firms and local governments to learn from painful deleveraging experience and prioritize sufficient cash flow.

 

Prof. Yao also pointed out the critical importance of maintaining an open, peaceful and win-win international environment, which had been instrumental for China’s development over the last forty years. He commended the video meeting between President Xi Jinping and US President Joe Biden, which at the very least re-started bilateral efforts in trade. In his keynote speech for the opening ceremony of The Fourth China International Import Expo (CIIE), President Xi stressed China’s determination to push for high-level opening up and economic globalization. Prof. Yao believed that in the next 10-30 years, China would remain the best investment destination in the world.

 

Tech Will Power New Growth Cycle

Jan 28-2022   



Starting from 2022, the Chinese economy would see a new decade-long growth cycle propelled by innovations and technological advancement, in lieu of the usual driving forces of export, real estate, and investment, said Prof. Yao Yang, Dean of the NSD, in a media commentary.

 

He believed that China had been heavily underrated in its technological development and the next 10-30 years would be its ‘highlight era’ when the country’s tech prowess led the world in such fields as AI, automation, and new energy vehicles. He based his argument on the fact that many Chinese companies had become ‘invisible champions’ in various sectors over the last decade, which formed the innovative advantage for China to ignite a new growth cycle.

 

Meanwhile, in light of the dramatic adjustments that had been undertaken to the economic structure, Prof. Yao called for more stable policies and more solid industries. In terms of the former, he cautioned against policy adjustments that were too rapid-fired or dramatic and caused negative shifts in expectation. Examples of such negative consequences might be decreasing investment in manufacturing in the second half of 2021 and the poor performance of the real estate sector. As of the latter, Prof. Yao highlighted the need for private firms and local governments to learn from painful deleveraging experience and prioritize sufficient cash flow.

 

Prof. Yao also pointed out the critical importance of maintaining an open, peaceful and win-win international environment, which had been instrumental for China’s development over the last forty years. He commended the video meeting between President Xi Jinping and US President Joe Biden, which at the very least re-started bilateral efforts in trade. In his keynote speech for the opening ceremony of The Fourth China International Import Expo (CIIE), President Xi stressed China’s determination to push for high-level opening up and economic globalization. Prof. Yao believed that in the next 10-30 years, China would remain the best investment destination in the world.