China’s drive for tech self-sufficiency is already paying off
Facing an uncertain future, China’s pivot towards self-reliance and technological innovation will cement its position on the world stage
https://www.scmp.com/opinion/china-...ufficiency-already-paying?utm_source=rss_feed
To redirect its economic trajectory and ensure long-term prosperity, Beijing has recognised it is essential to carve out new avenues of growth. To date, over 1 trillion yuan (US$128.68 billion) has been invested in emerging industries such as artificial intelligence and green technologies. Aligned with this strategy, universities are
revamping their courses to focus on hi-tech fields in response to the government’s
call for more talent in these sectors.
According to the Milken Institute’s latest report on the best-performing cities in China in 2023–2024, these new productive forces are emerging as potential silver bullets for the economy. Cities that have displayed significant economic resilience tend to share a common characteristic: properly established tech hubs and diversified sectors.
For instance, Hangzhou has shifted from a tourism-based economy to a flourishing e-commerce hub that hosts large tech conglomerates. Though the city remains a top tourist destination, tourism revenue plays an increasingly smaller part in the local economy.
In the meantime, Shenzhen, a crucial city included in the
Greater Bay Area development zone, is working to reinforce its distinction as “
China’s Silicon Valley”, to attract even more investors and private-sector engagement.
By fostering
home-grown innovations, the world’s second-largest economy seeks to enhance its competitive edge by
reducing its dependency on Western technologies. China is striving to achieve this by bolstering its domestic supply chains, strategically fostering tech hubs in the central regions, and strengthening its alliances with Southeast Asian markets such as Malaysia and Vietnam through the
Regional Comprehensive Economic Partnership.
China is also struggling with another pressing issue: its
shrinking industrial workforce coupled with
sluggish domestic demand. The trajectory of the once-revolutionary “
reform and opening up” policy that has brought immense social and economic benefits needs to be changed as China seeks to adapt to new economic realities.
Aside from upgrading traditional industries, China is concentrating its efforts on further developing inland regions and expanding its existing large production centres. Today, years of investment to stimulate growth in regional clusters across the country seems to be paying off.
Economic activities in big and smaller cities within zones such as the Yangtze River Delta has significantly increased over the past year. Such integrated development not only brings prosperity to the overall economy but also addresses regional disparities, creating a more equitable distribution of opportunities.
This approach underscores the importance of domestic market development in Beijing’s agenda. Strengthening domestic supply chains and boosting local demand while adjusting to shifting consumption patterns are meant to enhance the
country’s resilience to global disruptions and external shocks. In the long run, the initiatives are geared towards forming a healthier and more balanced economy.
