global culture and economy increasingly stem from what three regions and what three cities

This will require significant investment. Second, to reach its climate goals, China will need to transition faster to carbon neutrality than today’s advanced economies, and at lower levels of per capita income and emissions. Stronger institutions to manage insolvency, enterprise restructuring, and bankruptcy could facilitate more dynamic companies, enabling market entry and exit, and the reallocation of resources toward more productive enterprises. This will require deepening reforms to increase the role of markets, the private sector and competition. This means China still has much to gain from catching up through adoption and diffusion of advanced technologies across the country.Īnother source of productivity growth is more efficient resource allocation. Yet China’s average productivity level is still about half of the OECD average. China’s innovation capacity has improved steadily in recent years, and the country is a global leader in e-commerce, financial technology, high-speed trains, electric cars, and other sectors. To revive productivity growth, policymakers have focused on fostering innovation. Together with a shrinking workforce, this is weighing on China’s medium-term growth potential. China’s productivity growth has slowed from an average of more than 3 percent in the decade before the 2008 global financial crisis to about 1 percent in the decade after. There are several key structural reforms that could support China’s transition from high-speed to high-quality development.įirst, reviving productivity growth remains a central priority.

to spread wealth gains more equally among the Chinese people.

to peak carbon emissions before 2030 and to achieve carbon neutrality before 2060 and.to become a high-income country by 2035 through productivity-led and environmentally sustainable growth.These improved near-term prospects offer an important opportunity for policymakers to refocus their efforts on achieving the country’s three long-term development objectives: This year China’s economy is expected to recover, fueled primarily by a rebound in domestic demand.

Global culture and economy increasingly stem from what three regions and what three cities