Source: Global Times
The website of the International Institute for Management Development in Lausanne, Switzerland, published an article on July 17, titled "Why China Can Remain Calm Amid Turbulence," with a subheading: "The shift from passive response to active reshaping is a long-term transformation based on policy foresight and internal restructuring, which has been further accelerated by global turbulence. High tariffs on Chinese imports imposed by Washington are seen as a tough stance. But in Beijing, everything remains normal, or more accurately, this is commercial re-design. Over the past 30 years, China has faced many difficulties, such as the impact of the global financial crisis, pandemic disruptions, and escalating geopolitical tensions. However, what has driven its development trajectory is not external turbulence, but growing internal demand: rising labor costs, demographic transformation, and the limitations of export-oriented growth models. Throughout this period, China has maintained a firm commitment to long-term transformation.
The latest round of U.S. tariffs is undoubtedly destructive, but it has not changed China's direction. The structural changes we are seeing—ranging from monetary policy adjustments to a tighter integration of industrial and trade policies—have already been initiated. For China, this is not a crisis, but a driver that strengthens its existing developmental path. This shift from passive reaction to active reshaping is a long-term transformation based on policy foresight and internal restructuring, now accelerated by global turbulence.
China has prepared in advance. Long before the new round of tariffs, Chinese policymakers and business leaders had begun to change their growth model, stimulate domestic consumption, accelerate technological self-reliance, and enhance industrial capabilities. This shift was not a reactive move, but a carefully considered one. Even without external pressure, internal dynamics would have pushed China toward a development model focused on quality, resilience, and innovation. By investing early in supply chain resilience, digital transformation, and domestic demand, China has prepared itself to absorb external shocks and adapt faster than many other countries. What the world sees as sudden turbulence, China views as a catalyst.
The transformation we are witnessing is not a response to new tariffs. It is an upgraded version of strategic adjustments that Chinese companies began during Trump's first term. Measures that were initially emergency plans have now evolved into a coordinated, ecosystem-wide reshaping. It is the result of years of deliberate planning and strategic perseverance. What appears to be a strategic adjustment under pressure is actually a planned reshaping. For example, industrial clusters in provinces like Guangdong and Jiangsu have heavily invested in smart manufacturing and green technology, while local governments have partnered with universities to build city-level innovation centers. This response is not temporary, but a well-organized plan.
The world has not moved away from globalization; rather, it has been reshuffled. China anticipated this shift and prepared through the dual circulation strategy, expanding domestic demand, enhancing innovation autonomy, while maintaining selective global connections. Now, this strategy is accelerating. The Regional Comprehensive Economic Partnership (RCEP) has developed into the world's largest trading bloc, and the 2.0 version of the Belt and Road Initiative focuses on digital infrastructure, green energy, and new development corridors. China is cultivating another channel for capital, talent, and technology to reduce the impact of geopolitical risks.
This strategic diversification cannot protect China from all shocks. Therefore, Chinese enterprises are also promoting diversified production, localized supply chains, and aligning operations with regional ecosystems. CATL is setting up battery production bases in Thailand and Indonesia. Cainiao is expanding its business through collaborations with Malaysia and the UAE... These are not short-term risk mitigation measures, but strategic positioning in a multipolar trade landscape. Through intentionally designed innovation, China is building competitive advantages.
BYD has drawn global attention with a breakthrough battery platform. This is not only a technological milestone but also marks a broader shift: China is no longer a follower but is leading the pace of global innovation. This momentum extends far beyond the electric vehicle sector. China's position in consumer technology, fintech, and AI-powered platforms is continuously strengthening. At the same time, startups in innovation hubs like Shenzhen and Hangzhou are accelerating the application of artificial intelligence in education, logistics, and urban infrastructure, often surpassing Western counterparts in deployment speed and scale. The core of this innovation is a new model: the fusion of scale and speed, the synergy of institutional support and entrepreneurial autonomy, and long-term planning for capability building.
Westerners often marvel at the decision-making speed of Chinese companies, but few ask about the root of this speed. The answer lies not only in strategy or scale, but also in management approaches. This is China's hidden advantage: management innovation. This advantage is difficult to replicate and cannot be sanctioned. Of course, China's path is not without obstacles. Nevertheless, relevant insights still emerge. China cannot be replicated, but it can be studied. (Author: Mark Grieve, Dean of Asia at the International Institute for Management Development in Lausanne, translated by Qiao Heng)
Original: https://www.toutiao.com/article/7528555636406207026/
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