THE Chinese economythe second in the world (18.6 billion dollars/19% of global GDP) it grew 5.2% annually in 2023and would expand this year by a similar percentage, with a potential growth rate of 5.5%.
The fundamental thing is that this happens when for the second consecutive year the objective of the People’s Republic does not consist in the nominal expansion of the product, but in the creation of “new productive forces”, synonymous with “digital economy”, that is, the complete digitalization of production and services, and which is currently driven by the full deployment of artificial intelligence (AI).
This happens when the conflict with the United States escalates to the extreme the attempt to dominate high technology, and shows that Washington is systematically betting on preventing or frustrating China’s pre-eminence in the advanced technologies of the fourth industrial revolution.
The total “digital economy” of the People’s Republic has been achieved $6.97 billion in 2022which represents 40% of GDP and which grows by 11.5% per year.
In short, what China is doing is fundamentally changing the structure of its economic growth with the aim of transforming it second economy in the world in a 100% digitalized system.; and for this a period of 10 years is imposed.
For this reason the starting point is to have a fifth generation/5-G mobile Internet system composed of 887,000 5G stations on which 2.3 million units dependwhich represents over 60% of the world total.
In this way, the People’s Republic starts from the assumption that real competition with the United States will take place starting from 2035, when, like the North American economy today, its they would be completely digitized.
A fundamental characteristic of Artificial Intelligence is that of being linked to the multiplicity of objects that make up the Internet of Things (IoT), so that its content always has a specific and determined character.
China has today 2.3 billion Internet of Things devices, which represents a 30% increase compared to 2022; And around the world, IoT has as its priority task the transformation of 20 major industries, which are, among others, transportation, infrastructure, autonomous vehicles, finance, education and healthcare.
The Internet of Things driven and guided by Artificial Intelligence transforms each of these “objects” into sources of new businesses that become “clusters” increasingly structured also spatially on a global scale.
In all these cases the People’s Republic is destined to occupy the territory first place for the size of its economy, the second in the world, and by workforce: it has 827 million workers, and among them 240 million with university or tertiary qualifications.
This is why China dominates the decisive aspect of demand, because in it the quantitative tends to transform into qualitative, which constitutes the true historical language.
China competes in the world in its dual role as a gigantic economy and an enormous internal market absolutely integrated with the global system; and in this double system the greatest process of “modernization” that the world has ever known takes place, it is currently the fourth industrial revolution.
The People’s Republic therefore – as President Xi Jinping reiterated in San Francisco – intends to import $40 trillion in goods and services over the next 15 yearsin a ratio of 3 to 1 compared to exports.
China’s fundamental strategy in this historical period consists of systematic opening of its economy and its society to the global system, and above all to the most advanced capitalism, archetypically identified with the United States.
This opening strategy is an invitation to participate in the extraordinary process of the fourth industrial revolution carried out by the People’s Republic.
The Chinese market, in short, is driven by some 500 million members of the middle class With an income comparable to that of North America (35,000 dollars / 45,000 dollars per year) it is a sort of world market.
Something similar to what happened with the United States after the triumph of the North over the South in the Civil War of 1861/1865 happens when The North American market was comparable to the rest of the world combined.
It is to this spectacular historical process that Xi Jinping In San Francisco he invited foreign capital to participate on a large scale, and in particular large American multinationals.
The priority for China is to focus these large transnational capital investments on new high-tech industries with the aim of 100% digitalizing its economy in the next 10 years; to then compete and integrate definitively with the North American economy, the most advanced in the world.
Hegel warned that the truth is always in sightand it doesn’t hide in the mediocre crevices of gossip and conspiracies.
This is what is at stake today in the People’s Republic; and the only inconvenience that historical truth offers is the need to understand it and above all to act.
Source: Clarin
