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Experts say China key to global recovery

By ANDREW MOODY | CHINA DAILY | Updated: 2020-08-05 07:15
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Investment plan

Workers are seen at an assembly line at the Fuyang branch of JAC Motors in Anhui province. LU QIJIAN/FOR CHINA DAILY

Many analysts believe China will turn the crisis arising from the pandemic into an opportunity to redouble its efforts to become a leader in the industries of the future.

The National People's Congress, the country's top legislature, approved a plan in May to invest $1.4 trillion over the next six years in technology, ranging from 5G to artificial intelligence, with local governments set to work with the country's private high-tech giants.

With national champions such as Huawei, China is already way ahead of rivals in 5G mobile communications, an enabler of vital new technologies such as the internet of things and driverless cars.

China also wants to be a leader in the green revolution, with major investment being sunk into clean energy technology.

Many entrepreneurs at the symposium addressed by Xi were from the technology sector, and they will be at the forefront of China's efforts. The country has already set itself a deadline of becoming a global technology leader within 15 years.

Sheng believes China will seize the opportunity presented by the pandemic. He said that unlike after the global financial crisis of 2008, which saw China respond with unprecedented levels of infrastructure investment, the focus now will be on the tech sector.

"This time round, smart investing in people and software, especially green products and services that are less carbon-and resource-intensive, will pay off better than huge increases in hard infrastructure, which happened a decade ago," he said.

Koh, from the Centre for New Inclusive Asia, said China is already trying to build a new economy, and the current crisis will further act as a catalyst for change.

He believes the scale of investment in "new infrastructure" such as big data centers and 5G, new energy vehicle charging stations, high-speed railways and long-distance power transmission to bring renewable energy to cities, is ahead of anything taking place in the West.

"Such investments are in line with China's aim to transition from a polluting, export-led manufacturing economy toward one that is high-tech and service-driven. China's economic transformation ambition is well supported by its existing leading edge in 5G and other technologies," he said.

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