China grew by +5.2% in 2023, three points more than the previous year’s boom (+2.2% per year), and estimates it will reach a similar percentage in 2024: +5% approximately.
This means that Its level of expansion among the world’s large economies is the highest: The United States grew by +2.5% in 2023, while Germany – the fourth largest economy in the global system -, and with it Europe as a whole, recorded a contraction of -0.5% in that period.
But the main challenge of the People’s Republic is not the immediate resolution of the post-pandemic crisis, which it would have essentially achieved, but rather the comparison with the North American level in the reconversion of its economy, which is the second in the world (17.9 billion US dollars/19% of global GDP), in an essentially digitalized system, while now it is only at 40%, while the remaining 60% still corresponds to the industrial phase; and this happens when the North American economy is 100% digital, and for this reason it is the first in the world (23.4 billion dollars, 25% of global GDP). It should be added that China estimates it has 10 years to catch up with the United States (2025/2035).
The great historical/structural changes are brought about by China driven by the great development of infrastructures, both in physical terms and in terms of “human capital”, typical of every historical era.
In this case, when it comes to competing with the United States, the world’s leading superpower, The strategically priority infrastructure consists in the creation of an integrated national network of computing power, which would be substantially completed by the end of 2025.
At that point, the structure of high-computing networks centered on very high-intensity nodes typical of the 5th generation (5-G) would cover more than 60% of the country’s total surface area, or 9.4 million km2; and at the same time the share of energy not coming from fossil sources (“green electricity”) driven by new information processing centers (“Big Data”) will exceed 80%; and for this project that is underway, it is expected an investment of 180,000 million dollars over the next two years.
It is also estimated that once new infrastructure development is completed, the cost of computing power will cumulatively decrease, dramatically reducing the headline cost of capital, which will – it is assumed – facilitate a notable investment boom.
The premise of this strategic decision is thisThis is the fundamental resource to enable the full deployment of the digital economyand therefore the axis of competition with the United States.
All decisions related to infrastructure in China have a strategic character, which distinguishes between what is essential and what is incidental and orders them carefully. a long-term vision.
This is why China intends to establish itself 8 national computer centers and 10 “Big Data” clusters. in the country’s western provinces, which are comparatively the least developed, with the aim of attracting and processing IT resources from the eastern and southern regions, which are already capable of competing with the United States. advanced terms of the 21st century.
The construction of a 100% digital economy that the People’s Republic will fully realize starting from 2025 is the work of a strategy called “Digital China”, and which outlines the meaning, direction and deadlines of this central objective of the next decade.
The logic of the system is the following: the use of resources, and above all of capital, is decided by the market, applying the criterion of the widest competition guided by the cost/benefit ratio, while the State defines the national objectives, and has all the the resources necessary to achieve it, the execution of which depends exclusively on the private economy. That’s what it’s called “socialist system of the People’s Republic”, founded by Mao Tse Tung on October 1, 1949, and then dedicated to capitalism and globalization by Deng Xiaoping in 1978.
It should also be underlined that all this is based on the full development of the 5th Generation/5-G mobile Internet, consisting today of 887,000 new 5G stations built in the last 2 years, which total 2.3 million units, representing over 60% of the global total. To this we must add that fifth generation/5-G mobile Internet users already amount to 880 million, and before 2030 they will be 1.1 billion, which is the total number of users in the country.
In this way, China seeks to compete with the United States with an economy that would be fully digitalized by 2035 due to the dominance of the advanced technologies of the Fourth Industrial Revolution, driven by artificial intelligence, which is the most transformative of technological technologies. The weather.
On this level the People’s Republic acts on the basis of a double assumption: firstly, This is the core of power in the 21st century, which no longer resides in the military dimension, nor in the economic one, nor in the size of the territory and the population; and then in the awareness that 21st century technology necessarily has a cooperative, and therefore global, character.
Source: Clarin
