China's innovation-based industrial strategy, led by Xi Jinping, aims to propel the country to the forefront of technological progress. However, concerns persist over systemic weaknesses such as youth unemployment, financial frailties, and weak consumer demand, which could hinder the strategy's success. Experts warn that while China demonstrates innovation, the outcomes are mixed, with pockets of tech brilliance amidst broader macroeconomic challenges. Analysts emphasize that innovation and industrial policy are distinct concepts, and China's rigid governance may impede creativity and disruptive change.
“Xi believes that by focusing on industrial policy and innovation, he can rescue China’s beleaguered economy and seize opportunities to lead the twenty-first century’s new industrial revolution. But this strategy is unlikely to work as Xi intends.” https://t.co/qsWBlDwyFC
Yep. China's industrial policy *on paper* is far larger than anyone else's, but *in reality* it's far larger than it is on paper. The world has never seen anything like China's industrial policy. https://t.co/hHor7THvyn
I regret the framing of this tweet. What I meant to say was this report provides the best estimate by far of the scale of China’s industrial policy efforts grounded in data. But there’s also much more that’s difficult to quantify but could be counted as industrial policy. https://t.co/00Q2VMC3BY
Xi Jinping’s new economic strategy aims to place China at the vanguard of technological and scientific progress in the coming years—but the country’s rigid politics and governance will likely stifle creativity and disruptive change, writes @georgemagnus1. https://t.co/hI7HVbOFEy
Unless Beijing also addresses the systemic weaknesses plaguing China’s economy, Xi Jinping’s new innovation-focused industrial strategy is unlikely to provide new growth momentum and prosperity at home, writes @georgemagnus1. https://t.co/XuWcrvyKja
“China’s innovation-based industrial strategy may not be transformative if the government is unable to address basic systemic weaknesses such as youth unemployment, frailties in China’s banking and financial systems, and weak consumer demand.” https://t.co/gGRpyF3So5
My FA piece argues that China conflates innovation w/ industrial policy. Not same thing, and different outcomes. Not that China doesn’t innovate which it clearly does, but a) with v mixed results and b) islands of tech brilliance offer no protection in a sea of macro trouble. https://t.co/VSuMjVyOAU