China's Dual Circulation Strategy - Pascal's China Lens week 22

Title: China's Dual Circulation Strategy
Website: https://www.pascalcoppens.com/

CONTENT
This video explains more about the internal and external implications of the dual circulation strategy that will be part of China's next five year plan 2021-2025

TRANSCRIPT
We're going to talk about the dual circulation strategy that
is going to be part of the next five-year plan of China
What does it mean for China? How does it impact the rest of the world?
So, what is this dual circulation strategy all about?
we hear about it a lot, specifically in government context
talking about the 14th five-year plan next year from 2021to 2025
we will have this dual circulation strategy center piece
What it means is that the internal market, so the Chinese market,
needs to grow and become stable
and that needs to happen by getting support from integration
with external markets - the rest of the world.
So, China has an internal and external policy to make this happen.
It has to become a win-win. Now, these are all nice words.
and when you hear win-win from China you often think they win.
But do we win? Or do we lose ?
So, what is this about? If you hear about this the first thing that comes to mind
is first similar to the Made in China 2025 plan,
which is about China becoming leader in innovation by 2025
in 10 different sectors from Aerospace to electrical vehicles
to micro electronics, robotics and so on.
Trump was very much against it and Obama as well before that,
because they saw that China had the ambition
to become the leader of innovation.
They were going to subsidise industries, and they did,
They were stealing IP according to Trump.
There are going to force technology transfers
to get market share for American companies in China.
So, not very healthy.
The government has stopped using Made in China 2025 plans
since about 6 to 9 months, because they felt this really
is hurting themselves more than anything else.
So we have a new word and the word is duel circulation strategy
and is it any different?. That's what we want to find out.
When we look at the internal
there's some things that are very similar,
but there's two new things. The first thing is that they want to increase
domestic consumption.
They want to have the household income to double by 2035
today it's about 10,000 US dollars per person, on a yearly basis.
15 years ago it was only 2000 , it means times 5 in just 15 years time
They want to double in the next 15 years
That could bring China into an advanced economy level
and get out of the middle income gap that they are into right now.
They want their consumers to save a little bit less,
consume a little bit more.
They won't have the urban and the rural areas
that gap to close little bit more,
They wan't to have more healthcare and Social Security
and Pensions everything to improve.
That's that stability of the countries, so people to start consuming more.
So, that China can produce more for its own people
and not for the rest of the world like they have been doing so far.
The second things is very similar to Made in China 2025.
This is about innovation.
It's about industry 4.0.
But it's really ain't at manufacturer.
So, this is something that they will continue doing
They're getting a little bit more refined and how they do it because
they know the world is watching them very very closely.
A third thing is about supply chains and this is about rebalancing
and diversifying the whole supply chain which the whole world is doing
With covid-19 we've all learned that we don't want to be dependent on China.
For medical equipment, for masks .
China figured out they have the same problem
when it comes to oil or certain resources or microelectronics,
and so we want to diversify and china
want's to change it's supply chains with it's parters outside China
and inside China to have more opportunity to actually get
what they need when they need it and that's smart supply chains.
smart logistics.
It's actually going to lead China to become smarter
in manufacturing. So China here wants to become the factory
for China rather than the factory for the world.
I think that's the big change that will happen; that mindset could actually
completely change the way they put their priorities and instead
of giving loans to service Industries,
they're probably going to give more loans to high-advanced Industries
and less to state-owned enterprises or companies that are
not providing quality products.
This is all about the internal. If you look at the external,
how are they going to deal with the world? There's three things:
...

KEYWORDS

Pascal Coppens, China, innovation, trends, keynote, speaker, public speaker, Dual Circulation Strategy, RCEP, Made in China 2025
ABOUT PASCAL COPPENS:

Website: http://www.pascalcoppens.com
Linkedin: https://www.linkedin.com/in/pacovision/
Youtube channel: https://www.youtube.com/channel/UCTdWsl15oEt0nZZy9Z1fnhQ?

BOOK - CHINA's NEW NORMAL

http://www.pascalcoppens.com/shop

Видео China's Dual Circulation Strategy - Pascal's China Lens week 22 канала Pascal Coppens