Where Is China'S Economic Chariot Heading?

Over the past 20 years, China has become the world's leading factory in the world.

Transformation is urgent.

How big is the possibility of China's economic pformation? This is not a question to answer.

What the participants really care about is what drives or influences.

Yesterday afternoon, on the forum of "Rethinking China's competitive advantage" held in Davos in the summer of 2010, the pformation of China's economic structure has been set as an established proposition, not a hypothesis.

"The financial crisis has completely changed China's environment and business models. The speed of economic growth in developed countries has slowed down by 20%-30%. After the weakening of external demand, the economic mode of export driving the economy should be changed to"

In Zhu Min's view, China's economic structure has come to a time of pformation.

Zhu Min believes that first globalization is a big environment. Under such a tide, Chinese enterprises are facing all kinds of difficult problems in the world economy. Secondly, the labor cost of China is rising gradually, and the manufacturing industry will not be an advantage of Chinese industry in the future. The fluctuation of current exchange rate has also affected the market to a certain extent. In addition, China's per capita GDP reaches 4000 US dollars. On this basis, we must continuously improve the living standard of all people, and we need to radically change the economic mode.

Martin Sorrell, chief executive of WPP group, also said in her speech that China used to be mainly manufacturing, and there were many huge exports. Although the financial crisis had little impact on China, the Chinese government did a lot of wonderful measures to adjust the impact of the financial crisis.

However, this adjustment still brings "labor pains", which is bound to be faced in China's economic restructuring.

Innovation is the core

How can we change the image of "world factory"? How can we pform high energy consumption, high pollution, labor intensive enterprises and export-oriented structural models into more sustainable development models? In this regard, experts almost give the same answer: innovation.

Zhu Min believes that the key to the pformation of China's economic structure is innovation.

Based on China's resources, China's largest resource is population, which is the premise for China's development.

Historical experience shows that after the per capita GDP exceeds US $4000, the added value of the population must be increased. Only when we have certain wealth can we have demand.

The increase of population capital and the increase of innovation ability are the core of the pformation of China's economic mode.

Martin Sorrell also expressed the same view.

"From the historical development of all countries in the world, although the development and stages of each country are different, many countries are unable to continue to rely on the strength of their labor force after reaching a certain level of income.

With the increase of labor costs and the rise of the cost of the company, the accumulation of capital can only be innovating.

Martin Sorrell said.

Despite 20 years of development, China has become a leader in developing countries and has a bright future, but innovation is still the key. "

Jennifer Blanke, chief economist of the world economic forum, believes that China is at a stage of efficiency pulling and the direction of future development is very clear.

However, if China's competitiveness wants to go up, it will inevitably require innovation.

It is worth mentioning that innovation involves multiple meanings: improving the competitive system, improving the level of education and improving the use of technology.

At the same time, the government should also create an atmosphere conducive to innovation and introduce appropriate funds.

Who will lead?

Transformation is often accompanied by "labor pains" and hardships.

In the process of China's economic restructuring, what are the decisive factors? At present, elements such as government and talent are indispensable.

In his forum yesterday, Zhu Min repeatedly said that economic restructuring lies in innovation, and the key to innovation lies in people.

In the process of pformation, it is necessary to improve the quality of talents and increase the training of talents, which means increasing investment in education, especially higher education.

At the same time, a series of policy reforms should be carried out, and the emphasis of reform should also be placed on people and the cultivation of human resources.

In addition, Heizo Takenaka, director of the Global Security Institute of Keio University, Japan, mentioned that several factors should be taken into account in the process of pformation: first, the pformation of China's economy lies in planning.

Although China has achieved good results in past planning, China is still in the process of reform, and there will be more changes. This also means more changes. Secondly, there are still many challenges in China's economic structural pformation, such as the imperfect medical and health care system, high savings rate, service level, financial system, corporate governance and so on.

"China's state-owned enterprises must look at the international market and should not only be satisfied with the domestic market, so as to form influential multinational enterprises."

Heizo Takenaka said.

BCG's experts also believe that in the process of pformation, we can see that China's middle class is rising, and this group is expected to have 150 million people in the future. This trend is very important.

The government should have corresponding policies in this respect, and more importantly, these policies need to be implemented. State owned enterprises should introduce competition mechanism or privatization.

"China's pformation must be based on domestic consumption drivers. China has a huge population and has a wide market. Why not let domestic demand drive China to continue to push ahead in the process of structural pformation?" Martin Sorrell is a trend in the direction of China's pformation.