Jakub Jakóbowski warns against the simplified perception of the Chinese economy, which balances between technological avant -garde and structural problems.
Stereotypical thinking about the Chinese economy has undergone a radical metamorphosis in recent years. From the image of “Chinese” – products of poor quality produced in large assemblies – we went to the technological vision of the Empire, where drones, semiconductors and the latest innovations are everyday life.
“We associated China for a long time with this proverbial Chinese, poor quality, low work costs, a great assembly plant. It has long ceased to be true” – emphasizes Jakub Jakóbowski in an interview with Onet in the morning financially. However, the OSW expert warns against falling into the opposite extreme: “Suddenly China We begin to appear as a place where all the latest technologies are already implemented. Drones, semiconductors, cold fusion and so on. This is the full media space. I would warn you to go to the second extreme, “he says.
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Two faces of Chinese growth
As he indicates, The reality of the Chinese economy is much more complex than the popular narratives suggest. Jakóbowski describes the coexistence of two worlds: “Today in China there are these two things next to each other – we have old China, China factories, China of workers, and next to it in large cities indeed technological elements that we do not see today in Europe today, and maybe in the United States.”
According to OSW expert, Chinese achievements in the strategic sectors are particularly impressive: “Indeed, we are dealing with a number of sectors in which the Chinese begin to develop very intensively technologicallyand even go to the lead sometimes. We see it, for example, in green technologies, where the Chinese really give the tone to the whole world. “
Technological priority of XI Jinpinga
Technological development has observed Chinese leadership. “This is the eye in the head of the Communist Party of China, the leader of the 11th Jinping, who puts one hundred percent on this technological development. It is in all speeches as this main element, the main goal, the main priority” – explains Jakóbowski.
Especially electrical motoring enjoys special attention to the authorities in Beijing. Chinese electric cars not only change the domestic market, but also expansively enter international markets, constituting more and more serious competition for traditional producers from Europe and the United States.
China looks different in the provinces
The expert indicates that the wealth of Chinese society does not look as it may seem. “We are probably talking about several hundred million 400-500 million people already living in cities often cities of the so-called first row. Beijing Shanghai Shenzhen, Tiencin. These are the Chinese whom we see in Chinese films, and these are those Chinese, whom we see in Europe who come to us and they are really wealthy. wealthy ” – indicates Jakóbowski. He adds, however, that the majority of Chinese society is not so rich.
“It should be remembered that next to this almost a billion people who stay either in the countryside or in smaller cities, which, however, is the basis of this society and which, against the background of these developed cities, however, still stands out very much. These inequalities in China are very visible when you go to them, especially when you go beyond those huge cities, which actually shine in the eyes of skyscrapers, drone shows, modern cars. It will go down, it turns out that there is life that does not look like it is in China fully, “he admits.
“It is not such a poverty that was still in China a few dozen years ago. It must also be reflected that from the point of view of the authorities this struggle against extreme poverty was indeed a priority and a lot of investments were made here” – adds the expert.
Structural problems inhibit growth
Despite the technological successes, the Chinese development model struggles with fundamental problems. “This new, technologically advanced fragment of the Chinese economy must entail this huge economy built over the years, which generally fails” – diagnoses the OSW expert.
Jakóbowski points to specific weaknesses: “This great investment mechanism for building cities, real estate, infrastructure – this engine has already blurred, everyone can see it in China. Vacancies, overinvestment into infrastructure – there is awareness “
The weakness of internal consumption is equally problematic. “The Chinese do not have so much money, they do not stay in their pockets so that they can consume,” explains the analyst. This situation poses a huge challenge to balancing two different economic models.
The coexistence of avant -garde technologies with outdated economic structures is a key challenge for Chinese leadership. As Jakóbowski emphasizes: “Balancing these two things is very important to the authorities in China today.”
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