Comments on Andrew Sheng and Xiao Geng "China’s challenges drive experiment-driven reforms", 15/07/2015
In the mist of gloom and concerns about the potentially excessive slowing of the Chinese economy, this piece presents some encouraging and more positive perspectives to be reassuring. Having said that, it is very important for the Chinese authorities to pay close attention to economic growth to ensure the world’s second largest economy not to fall off the rail.
I am particularly delighted to know “that China would produce four of the top ten global internet companies (by number of visitors) — Alibaba, Baidu, Tencent, and Sohu — as well as innovative multinationals like Huawei and Xiaomi.” Of course, they reflect also the fact of China’s large population (still the world largest one) as the users (market force) to be one of the key factors.
It is also very exciting to know “It was the combination of broad-based education, openness to science and innovation, investment in advanced telecommunications infrastructure, and knowhow in manufacturing smartphones that fuelled China’s rapid advancement in the e-tail and internet industries. This openness to innovation — along with what some say is lax regulation — also allowed platforms like Alibaba to integrate payments and logistics before many Western players did.”
The Alibaba story and the smartphone producers story are excellent examples which may point to the way ahead for the Chinese economy that is likely to overcome the so called middle income trap. Innovations will play an important role in that process.
I thank the authors for their work that made me a little happier today.