At least raise to 2% of GDP from the current 1.3%.
Chinese Economics Thread
- Thread starter Norfolk
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At least raise to 2% of GDP from the current 1.3%.
this is very interesting for me at least. I watched several YouTube clips today where content creators are raving about the great trip they had to China where they get to experience the gaming studios and meet other gamers. This is a great soft touch by the gaming studios
The sensible path is to target investment & stimulus towards high margin industries that China doesn’t already have globally dominant players in, which is exactly what is happening. Disrupting existing Western, Japanese, and South Korean monopolies in spaces like software platforms, energy efficient automobiles, large OLED panels, etc is exactly what China should be & is doing.
The key to this disruption is increased R&D spending. Of course, you would also need to reorient academic institutions towards training people for the shift in focus. Fortunately all that’s already been happening.
Besides this, throwing some more money at the demographics challenges would also help address long term risks to the economy while unleashing some short term consumption benefits (marriage & children both result in a lot of spending). It won’t lead to near term gains in market share the way disrupting monopolies would, but it’s the same as infrastructure spending in being a long horizon investment.