What Year of the Snake holds for China’s economy
Chinese people around the world have just celebrated the Lunar New Year, which this year runs from January 28 to February 4.
It is the biggest festival of the year in China, signaling the start of spring, and this is the year of the wood snake. According to Chinese astrology, the characteristics of the snake – renewal, potential, opportunity and wisdom – will affect the year ahead.
As we start the new lunar year, it feels like a good time to look ahead to look at the prospects for the Chinese economy through the prism of these characteristics.
Renewal of traditional economic drivers
China dominates global manufacturing – its manufacturing production is as large as the next seven largest competitors combined. This has earned China the title of the world’s manufacturing superpower – but it has come at a cost. The latest data shows that China is among the top 20 most polluted countries across the world.
Therefore, it’s likely that over the next 12 months, there will be a continued drive towards the renewal, or upgrading, of traditional industrial sectors that have historically driven growth in China but are also heavy polluters.
This is part of a broader push by China to improve its climate footprint and reduce emissions. These are goals outlined in the National Climate Action Plan, referred to by the Paris Climate Agreement as nationally determined contributions.
Potential for a surge into AI
China has identified the potential for adopting AI, robotics and 3D printing in transforming its manufacturing base. Meanwhile, the country’s next generation AI development plan sets out clear objectives to make AI the main driver of Chinese economic change and industrial development. Expect to see more progress towards this goal in