China’s Development of New Productive Forces Sparks Concerns in U.S.
China’s rapid development of “new productive forces” has sparked concerns in the United States over the potential disruption of the international market. Chen Guangyan, a local scholar and honorary professor of economics at Nanyang Technological University, predicts that tensions in international trade relations will escalate in the coming year or two, leading to more protectionist measures from the U.S. and the European Union.
Speaking at the “Interpretation of China’s Two Sessions” forum, Chen analyzed the strategic significance of China’s push towards new productive forces and its impact on global trade patterns. He pointed out that China’s focus on high-tech industries, such as electric vehicles, advanced manufacturing, artificial intelligence, and quantum computing, is reshaping the global market landscape.
Recent warnings from U.S. Treasury Secretary Yellen and other officials urging China not to export excess production capacity have added fuel to the fire. Chen highlighted the indirect ways in which Chinese products are entering the U.S. and EU markets, prompting concerns over the potential imposition of tariffs on Chinese goods.
Despite the challenges, Chen remains optimistic about China’s ability to navigate these turbulent waters. He predicts a shift in China’s investment focus from real estate and infrastructure to advanced technologies, creating a pyramid division of labor in Asia. This shift, coupled with strategic partnerships with regions like BRICS, ASEAN, and the Middle East, could establish a Chinese “safety zone” in the global market.
The “Interpretation of the Two Sessions” forum, which aims to dissect key economic strategies outlined in the Chinese government work report, featured insights from industry experts and drew a crowd of around 200 attendees. As China continues to ascend the global economic ladder, the repercussions of its new productive forces strategy will reverberate across borders.
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