Xinhua Headlines: 75 years on, China’s economy emerges stronger with new growth momentum.
Exactly, growth motion and momentum.
China has done well investing in manufacturing. China will do as well and better investing more in technology. Chinese international investment in technology can rise, without neglect to investment in domestic technology. Of course, international investment in technology has to be cautious, wise to bring the real desired results. China is not short of such virtues and skills. The available legal forms and formats are plenty, from collaborations and joint ventures to direct investments and other structures and transaction schemes.
Foreign technology investment by manufacturing exporters, carries three soothing remedies for trade (im)balances. The first is, that it invigorates innovation and invention in technology, where the markets of export, are good at. The second is, that China retains fair or good part of manufacturing, where Chinese industries are also good at. The third and no less important, is the added value in the cycle of technology and production, which preserves economic stability and augments the business and commerce motion, momentum and dynamics. After manufacturing, technology is second stage development, which China is already in.
For example and for historic comparison, earlier on, Japan did the first manufacturing stage well. To deal with trade surplus, Japan then invested in foreign manufacturing and other business. The shortcoming was that Japan, for whatever reason, did not invest, sufficiently, in foreign technology. Then Japan was caught in the wrong financial market down spiralling trajectory and things went sideways for Japanese growth. The issue, was precisely, the investment in foreign technology, which in this case, arrived critically short.
Now, the case with China is similar but also different than the case with Japan. Also the times and places are different. This is the opportunity for China.
https://english.news.cn/20241003/2c973a393f7d49dcaab4d3b5c3b20bcd/c.html
https://english.news.cn/20241003/146635e9dae34cd594b0fc78d49aff40/c.html
https://english.news.cn/20241003/c664024ff4fd47aa8e65eb9f17637836/c.html
