Direction of China Reform
Efficiency Revolution is the key to understanding the Direction of China Reform. We have discussed China’s economic history in 1949-2009 and 2009-2019 in two previous episodes. With knowledge from history, we can better understand where China’s economic reform is heading and how you can position yourself to profit from it.
In the short term, the source of China’s economic growth depends on industrial upgrading and structural efficiency improvement, as well as the removal of factor efficiency black holes, wealth distribution efficiency black holes, and capital efficiency black holes that reduce the public purchase power. In the longer run, the future of China's economy depends on the revolution of science and technology.
The industrial upgrading of China’s economy has not yet been completed. Through the import substitution strategy of mid- to high-end products, industrial upgrading will catalyze technological innovation, and technological innovation will lead to a new generation of technological revolution.
There are only three ways to do business between countries: rely on physical labour, using brain power and using financial power. China's economy has shifted from relying on physical labour to relying on the brain, but it has not yet reached the true level of prosperity. The next and final stage is financial power, that is the internationalization of the Chinese currency.
China Explained will show you that because of China’s continued success in industrial upgrading, technological innovation and realizing its huge potential, it is an unstoppable process. The inevitable rise of China may feel intimidating and some simply reject it. Don’t be. More importantly, we will answer the million-dollar question: how can you, as an individual or a small business owner, also profit from the rise of China ?
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