From open market to future-oriented economic system
EY report Megatrends shaping 2018 and beyond: the upside of disruption introduces an analytic framework on understanding future trends, suggesting technological development, demographics and globalization as primary driving forces of future trends and disruptive changes. Interactions among all these forces will impact the future of economics, society and international politics and define what they will look like by shaping the future and driving disruptive changes with emerging technologies, demographics and globalization trends.
Human augmentation, aging population and globalization 4.0 act as the most recent dominant drivers. Given China’s industrial structure, development goals and demographics as well as its integration into the global system these three drivers are variables to China’s future development.
The above three variables constitute a great part of China’s internal and external development environment and direction in the future. The following three key opportunities will be vital to the development direction of China’s future-oriented economic system:
- Clean energy and new materials
- Intelligent transportation and infrastructure
- Health care
- Education and training
Energized innovation ecosystem
- Next-generation information technology
- High-end equipment
- New materials
- New energy
- Energy conservation and environmental protection
Personalized consumption era
- Digital infrastructure
- Information technology
Adaptive regulation for a future-oriented economic system
Disruptive technologies and new business models have an impact on the relevant regulatory systems in many ways. As one of the most active innovation markets in the world, China faces particular challenges in this regard. It is vital to consider how to implement reasonable and appropriate regulation without damaging the innovation power and market vitality, taking into account the interests of various market entities, especially the interests of consumers, laborers and SMEs, promoting high-quality development for China in the future and building a future-oriented economy.
Amid rising external uncertainties, China’s large domestic market underpins sustained growth. As the country continues to promote structural adjustment and financial reform, increase domestic demand and create a new landscape for opening up, a strong domestic market will bolster China’s economic growth and create great opportunities for other countries and foreign companies.
China is entering a crucial stage of continued reform and development. As such, decision-makers need to thoroughly consider economic, social and technological trends for the years ahead. In addition, they need to formulate industrial development plans, continue the development of the regulatory regimes, cultivate and retain talent, support innovation with more inclusiveness and high transparency, and manage risks and uncertainties.
Meanwhile, companies need to gain deeper understanding of China’s economic and social structure and opportunities in future, enhance communication with decision-makers on industrial planning and regulations. In addition, companies need to expedite adoption of new technologies and foster value-added products and services that increase customers’ confidence and tap into their potential needs.
Deepening reform, expanding opening up and building a future-oriented economic system will mark the start of a new journey of China in the new era.