Next Generation: Made in China 2025 | made in China 2025 explain
hello welcome to next generation we look
at how long-term trends shape our future
this time we're going to look at an
initiative launched by the Chinese
government quote made in China 2025
which should help China move its
industry up the valley chained alberto
peru kini my colleague from next
generation Research Analyst is here to
tell us why China's new initiative
presents an untapped investment
opportunity now about to welcome to the
show you just published recently a
next-generation study on made in China
2025 but the label made in China is so
common in the society today but why 2025
well they mean quite correctly made in
China is nothing new China has been the
new workshop of the world for the past
few decades what is new is this
government policy which was formulated
two years ago by the Chinese government
which is called made in China 2025 the
idea behind this policy is to put
innovation at the center of the Chinese
economy in order for China to overcome
the middle income trap and become an
advanced economy and it identifies
innovation as the key enabler of this
transformation the policy focuses on 10
strategic industry which range from
semiconductors to you know electric
vehicles you know it sounds very
ambitious but how likely can join us
succeed really we actually find it
increasingly likely that China will be
able to deliver innovation all the
preconditions are there there is ample
government support especially with
innovation friendly taxation ample
venture capital funding there is a large
cheap and educated workforce are in the
research and development and IP
intellectual property production are
both increasing and are elevated levels
so we believe the preconditions are
there
and to a large extent we see evidence of
that already coming through China leads
the world in some industries such as
digital Commerce or financial technology
FinTech and digital payments or
artificial intelligence AI and big data
analysis and we also see household
appliances manufacturers being extremely
globally competitive and innovative
additionally another piece of evidence
is that China has consisted consistently
moved up the global smartphone supply
chain and is now at the high end of the
production rather than at the low end
what should investors take away from all
these you know we believe that investors
should build exposure as I mentioned
before in the in the competitive areas
of Chinese innovations such as AI
digital commerce big data analysis this
is given for us additionally we think
that investors could monitor the
semiconductor space in particular in
China for catch-up potential with the
rest of the world and additionally we
also think investors should monitor the
new energy vehicle space as this
industry is particularly supported in
China and particularly so at the sensors
level thank you about to made in China
2025 as a blueprint for China to move up
the value chain and overcome the meter
in contract it is vast in the interest
of the Chinese government to continue
supporting innovation which will be a
major driver of future growth we
recommend that investors gain exposure
to a meet in China 2025 theme as some of
the winners and dominant firms
especially in digital commerce FinTech
and big data may have already emerged we
have now come to the end of this podcast
and we reached all our Chinese viewers
and everyone a very happy Lunar New Year
2018 cine Inquirer.....
you
Next Generation: Made in China 2025 | made in China 2025 explain
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