This is the golden time for China’s hard tech innovation

As China reopens and eases Covid restrictions, we dived into interpreting China’s latest economic goals and objectives and putting them into the broader context of China’s relationship with the global economy.

One of the metrics we looked at is China’s ranking in the global value chain (GVC). GVCs are part of today’s finished product and are powerful drivers of increased productivity, job creation and improved living standards.

The size of the bubble represents the amount of domestic value added absorbed by foreign countries relative to total exports. Charts have been reconstructed from source for reference.Source: ADB MRIO database, CICC Institute

The GVC Position Index measures positions upstream or downstream in the value chain. Russia mainly exports minerals. It’s oil or gas, so it’s upstream. Japan and the United States are upstream as they export R&D, intellectual property, and semi-finished products. China is downstream because it often exports products in a highly complete state.

More interesting is the bubble size. It represents the percentage of domestic value added to the total export value. China and the US are he two biggest bubbles, but China’s export to GDP ratio is ~20% compared to ~10% for the US. In addition, the United States mainly exports her IP and high-value components, while China exports more low-value-added assemblies.

For China to grow its bubble, it needs to add more value to the final product through innovation and manufacturing of higher value commodities. Otherwise, China has no raw material advantage, so it can’t do much better. We also see that the US can expand the bubble by bringing manufacturing back home and shipping more finished goods.

The GVC Position Index is closely related to the latest policy directions unveiled at the 20th National Congress of China, the most important political conference to be held in October 2022. this country for the next five years.

The gist of his speech was unmistakably focused on the pursuit of innovation. It was declared that China should use technology as its primary productive force and innovation as its primary engine.

(1) Concentrate national resources on strategic areas, (2) Build a globally competitive open innovation ecosystem, and (3) Develop original cutting-edge innovations. Supported.

Other highlights drawn from the week-long political conference include the goal of China achieving modern socialism by 2035. This is done through demographic modernization and achieving common prosperity through narrowing wealth inequality. Prosperity is defined as including material and spiritual wealth. His two points also stand out: harmony with nature through green development, and peaceful development.

The Chinese economy attaches great importance to quality development through:Strong manufacturing sector (strength as well as size) High quality output, innovation driven productivity growth Strong environmental/climate considerations

The important message about environmental responsibility is interesting. Xi Jinping’s speech hinted to Xian li hou po the meaning of rising above and breaking through, but omitted mention of specific years for carbon peak and carbon neutral targets. China wants to establish sufficient clean energy sources before shutting down traditional energy sources. Achieving a carbon peak in 2030 and he is abandoning his previous stringent commitment to carbon neutrality in 2060 to take a more pragmatic and flexible path.

President Xi also set three major themes to support China’s goals for the next five years.

Three main themes underpinning China’s growth:

Theme 1: The state-owned economy will be the central theme of the economy. Theme 2: Earning a fair share of wealth through labor, not just capitalist wealth creation. Theme 3: Focus on domestic distribution to provide high-quality, reliable goods and services for the domestic population.

An unusual keyword that stood out in his speech was dou zheng, which means struggle for foreign influence. This hints at how China must face its opponents with confidence, and shows China’s readiness to face confrontation with the West over its core interests and values.

Overall, I think the 20th Congress of the Communist Party of China has made clear what is important for China’s leaders. Never before has there been such clear, strong and solid policy support for China’s hard tech, innovation and manufacturing upgrades, and the golden age is right here.

Related

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: cgurgu@internetmarketingcompany.BizWebsite: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos