Automation and Advanced Manufacturing in China (Photo : Getty Images)
China's rise and transformation from a stagnant economy to a growing market economy in 20 years may be considered an "economic miracle", considering the size and complexity of the country, according to an article on Forbes.
China's economic growth, which rose more than 10 percent annually, continues as its GDP reached $108 trillion last year.
After the annual sessions of the National People's Congress and the National Committee of the Chinese People's Political Consultative Conference, China is focused on "seeking progress while maintaining stability."
The country is now entering the second phase of transformation as its shifts away from manufacturing and export reliance to more productive efforts.
The Chinese economy may achieve its goals if improvements in the following sectors are made:
- Focus on Consumers
As consumer demands determine new models for e-commerce, retail and technology, the country must focus and develop new ways to cater to "super consumers" by creating new demand and access to products through innovation.
It is expected that in the next decade, Chinese consumers, one of the largest in the world, will drive the growth of China and the global economy.
- Technology and Innovation
In the next 25 years, China's growth would depend on its ability to create and make use of technology products, which is currently being done by the country.
Shanghai is now ranked second in the world, next to New York, as one of the fastest growing technology hubs.
In terms of e-commerce technology, services and knowledge, China has surpassed the U.S. and other countries. Alibaba is now leading the world in online marketplace services through TMall and Taobao. The e-commerce giant is, in fact, already using cloud computing, virtual and augmented reality and O2O (online to offline) technology in retail selling.
The country is also more advanced than the West in mobile payments and has invested in tech R&D to become a major player in the manufacture of high-tech products to be sold worldwide.
- Advanced Manufacturing
While the West is working to bring manufacturing back to their home countries, China has advanced to automation and robotics for more than 20 years now, as it shifts to advanced and tech-driven production.
- Services
As the fourth foundation of its future growth, China is shifting from exports and infrastructure to services to create wealth.
The country is now advancing the four key pillars--the so-called FIRE + H industries (Finance, Insurance, Real Estate + Healthcare)--to drive growth.
According to the article, China's "miracle" growth may continue if it focuses on the four key elements of growth, which include consumption, technology, advanced manufacturing and services.
