China is the second largest economy and one of the fastest growing countries on the planet. But what does the future of China look like?
In 1978, after years of state control of all productive assets, the government of China embarked on a major economic reform. Since then their economy has grown at an average of 9.91%, which is roughly 7-8% higher than the average.
China is not only focusing on rapid development but it’s also attempting to improve the quality of life for their citizens and countering issues such as wealth gap and pollution. The massive outrage against rising pollution has opened an opportunity for electric carmakers such as Tesla and Anhui Zotye Automobile Co. to push for business expansion. This would massively improve not only their environment but improve the quality of life for their citizens.
The rapid growth in China has allowed them to become a massive player in the technology industry. Nine of the world’s twenty biggest tech companies are Chinese, with Alibaba and Tencent the two largest.
Alibaba is a multinational conglomerate specialising in e-commerce, retail, internet, AI and technology. Alibaba is heavily reinvesting revenue into growth and looking for global expansion. As a result of this it has made Alibaba even more profitable than Amazon, although that does not mean much now as the the main priority for both of these companies would be future growth.
Tencent is a multinational investment holdings conglomerate, whose subsidiaries specialise in various Internet-related services and products, entertainment, artificial intelligence and technology both in China and globally. Belonging to the technology sector means the company will be affected directly and indirectly by a number of disruptive opportunities and challenges over the coming decades. Internet penetration will grow from 50 percent in 2015 to over 80 percent by the late-2020s, allowing regions across Africa, South America, the Middle East and parts of Asia to experience their first Internet revolution. This will be a massive opportunity for Tencent as they own so many technology companies that will most definitely profit from this growth.
So what does China’s future look like? The Chinese government has announced “Made in China 2025” which is a bold plan to revolutionise the country’s image. Their new policies are aimed at enhancing innovation and production efficiency. China’s goal for 2015 was to become the world’s largest manufacturer of goods, which they achieved. Their goal for 2035 is to be competitive with developed manufacturing economies. By 2049 their goal is to become the world’s top manufacturer. The ultimate goal for China is to change China from a mass-producer to a quality-master and they are on track.