Meanwhile, other emerging economies - including Vietnam, India, Mexico, and Eastern European countries - are vying for China's position as the world's factory. These lower-cost alternatives are fast becoming the preferred destinations for developed country investors.
Although the enormous potential of China's consumer market can provide a new impetus for economic growth, the country's economic transformation cannot succeed unless it upgrades its manufacturing sector. China's leaders must begin by increasing investment in science and technology, focusing their efforts on parlaying key technological breakthroughs into higher value-added production. Only by combining growing Chinese consumption with enhanced Chinese manufacturing will the country be able to develop a new comparative advantage, which is the key to sustainable growth over the next decade.
The author is a fellow of the China Information Center and of the China Foundation for International Studies, and a researcher at the China Macroeconomic Research Platform. Project Syndicate
I love you, really : Love grows between a girl and her father
Feedback
RSS
