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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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A lithium battery production line operates at Tianneng Co in Huzhou, Zhejiang province. TAN YUNFENG/FOR CHINA DAILY

Tse, from Gao Feng Advisory, the author of China's Disruptors: How Alibaba, Xiaomi, Tencent and Other Companies are Changing the Rules of Business, said that despite the pandemic, China is entering a new era of innovation.

"China has a lead in so many of the disruptive technologies that are going to shape the industries of the future. What you have got in China is this ecosystem with national government, local government and the private sector all working together in a national technological effort. It is completely unique," he said.

"What you have also got is this entrepreneurial culture and this huge market where companies can try out new ideas. Whatever the rest of the world decides to do in terms of its relationship with China, this domestic market will accelerate innovation, and we have seen that happen already."

Some observers believe that not only the pandemic, but trade tensions with the US have also spurred China's technological effort.

The country's biggest semiconductor maker, Semiconductor Manufacturing International Corp, was floated on the Shanghai Stock Exchange on July 16, with its shares surging by 245 percent.

With Washington attempting to block Chinese technology companies from using US chips, the focus now is on producing them in China instead.

Khanna, the global strategist, said, "The US-China trade war has already served to accelerate China's efforts to upgrade its semiconductor and other industries."

He said that whatever the pressure, China has a long-term commitment to technology, and is unlikely to be diverted from this path.

"China's focus for 20 years, and each successive five-year technology plan, includes a wide swath of investment priorities, from solar power to medical devices," he said.

It is difficult to predict the winners in the post-coronavirus world, as cases continue to rise amid the prospect of second and third waves.

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