As China's economy evolves, the necessity for strategic intelligence analysis becomes paramount. China showcases a GDP growth rate of 6.1% in 2019, which is impressive given the global slowdown, highlighting how strategic policies have bolstered economic performance. Renowned economist Li Daokui has stated, "China's economic strategy focuses on innovation and sustainable growth." With the Belt and Road Initiative, China enhances geopolitical influence, investing billions of dollars in infrastructure across 70 countries. The Silk Road Economic Belt and the 21st Century Maritime Silk Road are two major facets of this initiative, indicating China's ambitions to bolster trade routes, promoting regional cooperation.
Technological advancements remain a cornerstone in China's strategic plans. Huawei's development of 5G technology, with an estimated global market value of $1.5 trillion by 2025, exemplifies China's ambition to lead in innovative domains. According to Armstrong & Associates, China handles over 25% of global e-commerce transactions, thanks to giants like Alibaba and JD.com. The State Council's "Internet Plus" initiative integrates internet with traditional industries, fostering new growth in sectors such as agriculture, finance, and logistics. This policy targets a 20% increase in industrial production efficiency.
Military modernization also plays a critical role. The Chinese military aims to upgrade its power projection capabilities with a defense budget of $261 billion in 2020, which accounts for 1.9% of its GDP. President Xi Jinping emphasizes the need for a "world-class military" by 2049, the centennial of the People's Republic of China. The construction of the Type 055 destroyer, with a displacement of 12,000 tonnes and advanced stealth features, showcases China's advancing naval capabilities. Additionally, the development of the Chengdu J-20, a fifth-generation stealth fighter, is a testament to domestic advancements in aerospace technology.
Beijing's commitment to renewable energy highlights another strategic focus. China's National Energy Administration set a goal to increase the share of non-fossil fuels to 20% by 2030. With over 1,000 gigawatts of installed renewable capacity, including the world's largest solar farm, China stands as a global leader in green energy. The Qinghai-Tibet Plateau's Three Gorges Dam, generating 22.5 gigawatts, symbolizes China's dedication to harnessing renewable resources.
Economic corridors like the Yangtze River Economic Belt, spanning 11 provinces and municipalities, aim to develop regional economies and reduce poverty. These regions generate over 40% of the GDP, emphasizing local industries and eco-friendly practices. The Yangtze River Delta Integration Plan allocates a budget of ¥1 trillion for infrastructure and technological innovation, fostering regional synergy.
State-owned enterprises (SOEs) such as China National Petroleum Corporation (CNPC) and China Southern Power Grid play pivotal roles. CNPC's revenues surpassed $320 billion in 2019, driving energy security through domestic and international projects. Meanwhile, China Southern Power Grid's electrification project aims to upgrade and modernize the national grid, anticipating a 15% reduction in transmission losses by 2030.
China's social policies also contribute to strategic interests. The "Healthy China 2030" initiative, aimed at improving public health standards, encapsulates a comprehensive plan targeting increased life expectancy to 79 years by 2030. Reuters reported that in 2020, China eradicated extreme poverty, lifting 100 million people out of poverty in a span of decades.
The surveillance and data collection methods, such as the Social Credit System, evaluate citizens and companies based on their behavior. This system, expected to cover all citizens by 2025, highlights the government's focus on social governance and order. Critics argue about privacy concerns, but the system reportedly improved local law enforcement and compliance rates by 20%.
The education sector also witnesses significant investment, with the government allocating 4% of GDP annually to improve quality and access. Initiatives like the "Double First Class" aim to establish world-class universities, fostering talent in science, technology, engineering, and mathematics (STEM). Beijing University and Tsinghua University already rank among the top in global academic standings.
The automotive industry moves towards electric vehicles (EVs), with the government aiming for 25% EV penetration by 2025. Companies like BYD and NIO are at the forefront, showcasing advanced models that compete internationally. The subsidies allocated for research and development in EV technology amounted to $1 billion in 2019, spurring rapid advancements in battery efficiency and charging infrastructure.
China's strategic alignment with international organizations plays a crucial role in its global positioning. Participation in the World Trade Organization, the United Nations, and the Shanghai Cooperation Organization enhances diplomatic clout and collaboration. By engaging in multilateral agreements, China aims to foster a favorable international environment conducive to its long-term objectives.
Economic policies such as the "Made in China 2025" plan emphasize the upgrade of manufacturing capabilities, focusing on high-tech industries. Targets include reaching 70% self-sufficiency in core components and materials by 2025, decreasing reliance on foreign imports. In industries like robotics, the goal is a robotic density of 150 units per 10,000 employees by 2030, reflecting significant automation advancements.
Furthermore, regional trade agreements like the Regional Comprehensive Economic Partnership (RCEP) create vast economic zones, facilitating trade among 15 countries. The RCEP covers 30% of the global population and accounts for 29% of global GDP, positioning China as a central player in regional economic integration. Tariffs removal and standardized regulations enhance market access, driving trade and investment flows. For more in-depth information and continual updates, please refer to the China Strategic Intelligence Analysis.