Bilateral competition between China and the United States intensifies, leading China to intensify its efforts towards business reform, according to experts.
By 2035, China targets a transformation of state-owned and privately held companies into forward-thinking, resilient, and globally competitive entities, equipped with modern corporate governance structures. This shift, outlined in recent guidelines, is aimed at bolstering competitiveness in an increasingly competitive global landscape – a tug-of-war between Chinese and American corporations, according to Fu Weigang, president of the Shanghai Institute of Finance and Law.
The blueprint for these changes is rooted in broader national strategies such as the Outline of the 14th Five-Year Plan and long-term objectives set for the same year. However, a comprehensive "2035 plan" centering on this focus was not explicitly outlined in available sources.
The national push strives for high-quality development across sectors, with innovation, advanced technology, and refined corporate governance as key areas of focus for both state-owned and private enterprises. China seeks to excel globally in cutting-edge technologies by investing in research, fostering innovation hubs, and supporting core sectors such as technology and renewable energy.
Reforms aimed at modernizing corporate governance structures involve improvements in transparency, accountability, and efficiency across the business landscape. The emphasis on China Inc. versus US Inc. in the tech race highlights the competitive nature of the relationship between the two economic giants, with China forging ahead in areas such as renewable energy, advanced manufacturing, and data technology.
China's tech race with the US is fueled by a desire for global technological leadership, marked by significant investments in AI, semiconductor manufacturing, and other strategic sectors. The country also endeavors to reduce dependence on foreign technologies and promote self-sufficiency through increased domestic innovations and research and development.
As part of China's broader ambitious strategies, its national security initiatives are interconnected with its development goals. The country aims to protect its technological advancements and secure its strategic assets at home and abroad. Meanwhile, China's international engagement involves balancing domestic growth with global influence, forging strategic partnerships, and facilitating economic engagements worldwide.
- To support China's global competitiveness in business and trade, a modernized finance sector is essential, particularly in investing in research, fostering innovation hubs, and supporting core sectors like technology and renewable energy.
- Embracing advancements in technology is crucial for both state-owned and privately held companies in China, as they strive for transparency, accountability, and efficiency in their corporate governance structures.
- As China's tech race with the US escalates, there is a focus on reducing dependence on foreign technologies and promoting self-sufficiency through increased domestic innovations, research, and development across strategic sectors like AI, semiconductor manufacturing, and data technology.
