Reference News Network, December 4 report: The World Journalism Syndicate website published an article titled "The Future of China's 'Electrified Nation' " on December 1. The author is Ludovic Subran, Chief Investment Officer and Chief Economist at Allianz Group. The following is a compilation and translation of the article:
China is undergoing another major transformation. This "world factory" is rapidly transforming into the first electrified nation, with its economy increasingly relying on clean energy, artificial intelligence, advanced manufacturing, and control over key strategic materials.
China has become an undisputed leader in global clean technology manufacturing. Currently, China controls about 60% of the global solar, wind, and battery equipment manufacturing capacity, as well as over 80% of the world's solar component production. Mass production has significantly reduced costs; for example, the price of solar components has fallen by about 80% over the past decade.
At the same time, the resources China is investing in enhancing innovation (especially in the field of artificial intelligence) are yielding fruitful results. China currently has more than half of the world's artificial intelligence researchers and about 70% of artificial intelligence patents, and it ranks among the top ten in the Global Innovation Index published by institutions such as the World Intellectual Property Organization.
All of this constitutes a remarkable long-term strategic approach. Every aspect of the global economic transition, from the supply of key inputs to the manufacturing of high-tech products, and from the design and financing of new industrial and energy systems, is highly dependent on China.
Although China's strength as a major exporter of critical minerals and technology is formidable, its own position means that it continues to rely on external demand, which is a situation China has always tried to escape. In the current context of rising protectionism and growing concerns over national security, this could become a vulnerability.
Therefore, China has reached a turning point. It has established a mechanism for an innovative low-carbon industrial economy, a mechanism capable of leading the global transition to net zero emissions and the artificial intelligence revolution. However, if this electrified nation is to achieve sustainable development, it must make progress in three key areas.
First, productivity must be improved—not by increasing the number of robots or factories—but through continuous innovation, skill development, effective management, and upgrading the service sector. The intensity of R&D investment is crucial here.
Second, China must find ways to accelerate the transition of its economic structure toward domestic demand. To this end, efforts must be made to increase household income and wealth, boost consumer confidence, and create employment opportunities.
Finally, China must manage its dependence on the outside wisely. Enhancing self-reliance is essential, but so are strategic partnerships, predictable trade relations, and transparent cooperation frameworks.
No matter what happens next, it will have profound implications for the world. For the entire Asia-Pacific region, the message is clear: artificial intelligence, green infrastructure, and digital hardware are the new frontiers of economic growth and prosperity. As China positions itself as a supplier, designer, and driving force of this new economic model, countries in Asia and beyond must adapt, cooperate with China, avoid bottlenecks, and reshape their industrial models. (Translation / Zhao Feifei)
Original: toutiao.com/article/7579968900150903306/
Statement: The article represents the views of the author alone.