New Delhi: China’s economic model, which catapulted the communist nation into becoming a factory for the world, is no longer “politically tenable” as it has resulted in hurting industries in other countries, which has led to a loss of jobs and slowed down growth, according to an article.
The article on the Time news website highlights that the United States has imposed hefty tariffs and export controls on Chinese goods, while multinational companies have adopted “China plus one” strategies with an emphasis on supply chain resilience.
“China’s manufacturing dominance is generating resistance. And not only in America. Europe worries about the erosion of its industrial base. Developing countries welcome Chinese investment and admire aspects of China’s development experience, but still ask a reasonable question: where, in this model, is our development?” the article by Chinese economist Keyu Jin contends.
It points out that for years, Western companies complained that access to China’s huge market came with demands for technology transfers. Now, China finds itself on the other side of the table, being asked to share its own expertise.
The article sees a new model of Chinese globalisation emerging, which is not simply exporting the products of China’s industrial ecosystem, but giving other countries access to the knowledge embedded within it.
The article observes that such a shift is already under way. In Brazil, BYD is moving from importing cars to manufacturing them locally and developing local suppliers. In Hungary, it is pairing its first European passenger-car factory with a research and development centre that will work with Hungarian universities and companies.
In Indonesia, Chinese investment is helping to build an integrated battery industry stretching from nickel processing to battery production and recycling. These early examples point to a different relationship with the world: one based less on exporting what China makes than on exporting the capability to make it.
Most countries do not simply want to buy Chinese electric vehicles, batteries, solar panels, machinery, and robots. They want factories of their own. They want their workers to acquire new skills and their suppliers to move up the value chain. They want technology and know-how, the article contends.
(IANS)
