Newsletter By 2024-03-22
“New quality productive force” is now a buzzword in China, particularly associated with the nation's car exports, including new energy vehicles (NEVs), which have indeed grown significantly, to the point where the U.S. is considering imposing policy restrictions on the country. This is mainly due to the combined effects of three factors: the entry of emerging market economies into the era of automobiles, unprecedented demand growth in the Russian market, and rapid technological progress in NEVs, jointly written by
ANBOUND’s founder Kung Chan and researcher Xia Ri.
>>Unlike the proactive "going global" in the context of globalization, many enterprises in this new wave have various necessary reasons for venturing into overseas markets. Some do so because of insufficient domestic market space, while others must relocate overseas due to global supply chain adjustments or to avoid various U.S. sanctions on China. Some Chinese enterprises are advantaged in the industry; hence they actively expand overseas markets for their global industrial layout. Offshore migration of industrial chains is a path to survival. How to actively adjust China’s own industries under this overarching trend, enhance the value of domestic industrial chains, create more domestic employment opportunities, and simultaneously mitigate overseas geopolitical risks is a major challenge facing Chinese companies, think tanks, and governments, in the opinion of
He Jun, Director of Macro-Economy Research Center and Senior Researcher at ANBOUND.
>>In a recent interview with business journalist Arthur Sullivan in
Deutsche Welle, a German public broadcast service,
ANBOUND's founder Kung Chan shared his views on the current economic situation in China. The biggest engine for the growth of consumption is real estate, and after this engine stalled, the country fell into a sluggish state. He also noted that state-owned enterprises receive more resources, but not so much for private businesses. Under the current state, China’s economic growth, vitality, and momentum are inhibited, making unexpectedly transformative prosperity and development less likely to happen.
Whether the technological cooperation between China and the U.S., or with other nations would be renewal, it is crucial to acknowledge cultural and legal differences. China is indeed tackling numerous challenges and shortcomings, including issues related to intellectual property awareness and legal compliance, which require time to address or improve. If all parties can efficiently utilize resources, foster mutual understanding through various means, and prioritize partnerships and communication, it will generate more innovation vitality, discussed
Yi Wang, Head of Global Development Program and Senior Researcher at ANBOUND in an article published by the
Diplomat Magazine in the Kingdom of the Netherlands.