Experts say China's significant innovation potential can drive growth

At the 2024 Bund Summit, economists and business leaders reached a consensus that China's long-term pursuit of high-quality development and its innovative capacities have emerged as new engines for sustainable economic growth.

Via video link, Nobel Laureate in Economics Michael Spence addressed the three-day summit, stating that while China is currently experiencing a short-run aggregate demand issue, its future growth will hinge on its substantial capacity for innovation and productivity improvements. He emphasized the importance of ongoing structural transformation on the supply side, noting, "The growth potential is really quite substantial."

Liu Jun, president of the Industrial and Commercial Bank of China, expressed optimism about China's economic potential, asserting that the country can elevate its entire economy to a new high-quality standard. Liu pointed out that "Technologies like the Internet of Things, cloud computing and AI drive the new economic paradigm," highlighting the synergy of China's vast market and population with the people's eagerness to embrace innovation.

Standard Chartered's China CEO Jean Lu also contributed to the discussions, remarking that China's economy is undergoing significant transformation characterized by the emergence of new quality productive forces. She noted the rapid development of new technologies and high-tech enterprises, emphasizing that the acceleration of economic transformation and upgrades is a remarkable trend that will bolster China's economy in the long term.

Additionally, Thomas Fang, head of China global markets at UBS, spoke about the complexities and fluctuations in the international environment alongside profound economic structural adjustments, noting the emergence of new opportunities and trends within China. He identified the digital economy, high-end manufacturing, and new energy as key sectors that will drive the country's economic growth.

Tim Wannenmacher, co-head of Global Markets Asia Pacific at UBS, highlighted the significant opportunities associated with AI development in China, pointing out the nation's advantages stemming from an active engineering talent pool, vast data resources, and diverse application scenarios for large language models.

The event, themed "Navigating a Changing World," was held in Shanghai from September 5 to 7, 2024, and featured a diverse gathering of former central bank governors, leading economists, and business leaders from around the globe.

Jessica Kline contributed to this report for TROIB News