Question

The impact of innovative economic development on rising of the export potential in china

Answer 1

China's economic transformation to an ambitious, inclusive and sustainable path of development provides the Asia-Pacific region with many opportunities, especially through increasing trade and investment in value-added areas. Rebalancing China from external to domestic demand means that, while remaining a hub for regional production networks, China is becoming an increasingly important source of final demand. Achieving export opportunities will rely on the ability of trading partners to successfully extend their access to Chinese consumers and adapt to their preferences, as well as further market liberalization in China, especially in services.

Over the past decade, China's growing outbound investment in the region has increased steadily, including in recent years through the Belt and Road Initiative (BRI). The emphasis seems to have shifted from securing raw materials to co-operatingwith productivity and developing infrastructure. In addition, allowing the economic growth and industrial development of China's geographic neighbors and potential trading partners will establish a wider market for upgraded industrial products from China. Meanwhile, Chinese investments that require adjustments for the economies and societies of the recipient countries, particularly if accompanied by Chinese labor and capital inputs.

Gradual easing of restrictions on capital accounts in China could have a significant impact on the financial environment of the region, potentially providing more investment and both forms of trade.
This is closely linked to Chinese renminbi (RMB) internationalization, including bilateral swap agreements that promote bilateral trade with China. At the same time, with increased financial linkages, financial spillovers from China to global equity and currency markets are expected to continue to grow. Uncertainty about China's outlook has the potential to affect global confidence, sparking uncertainty on the financial market.

Increasing China's value chain would increase competition with global exporters of technology and could lead to market share loss. This was most evident in the domestic market in China, where it is reflected in re-establishing the production of parts and components previously imported. But China has also begun to increase exports of such goods to other countries.