Reconstructing the Future Requires New Attractors
The global economy is in a period of turbulence. The old structure of globalization is collapsing, and a new structure has yet to take shape. "Rapid economic development has made government agencies seem capable of anything," but this has masked deeper social problems. China needs to find new drivers to reconstruct its economic system.
The Dollar Remains the Basis of Global Economic Liquidity
The dominant position of the US dollar is hard to shake. The United States sustains its financial authority through a well-developed commercial services system. Washington's authority rests on its grip over the manufacturing ecosystem, with its industry associations exerting exceptionally deep control over global supply chains.
Internationalization Will Be the New Trend in Chinese Manufacturing's Continued Development
Going global has become a settled choice for Chinese enterprises. The joint-factory model helps SMEs lower their investment thresholds and achieve scale. Chinese manufacturing is no longer simple product export — it requires laying out across global markets.
The Innovation Ecosystem Is Another Source of Certainty for Chinese Manufacturing
China possesses a vast reserve of engineering talent and a complete industrial chain. Cost reduction through R&D and design can resolve most of the issues in manufacturing cost reduction, and cross-industry knowledge transfer creates room for enterprises to optimize costs.
Digitalization Reshapes Enterprises and Industries
Digital platforms eliminate information silos and enable end-to-end process management. Leading enterprises empowering SMEs digitally create a "digital symbiosis" ecosystem, which holds the promise of producing more enterprises at the hundred-billion-yuan scale.
The Large Consumer Market Is the Greatest Source of Certainty for China's Economic Development
The Central Economic Work Conference emphasized expanding domestic demand. China's consumption potential is immense. If per-capita consumption reached one-sixth the level of the United States, the market could expand by 300%. The prerequisite, however, is advancing economic and institutional reform and building a unified national market.
Originally published: Economic Observer · Microscope · 2025-01-04 · Read original →
Originally published in the "Economic Observer · The Walker’s View" column. The author is Executive President of the Guangdong SME Development Promotion Association. For reprints or citations, please contact the author or the Association Secretariat.