The Chinese economy is one of the world’s largest and most powerful economies despite the recent economic meltdown. The robust and growing manufacturing sector coupled with supply chain repositioning has fueled the growth of the Chinese economy. Traditionally, China has always focused heavily on the export of finished goods to accelerate growth. However, with the changing market scenario and competitive landscape, China’s leaders have started directing their efforts towards domestic consumption; thereby, moving from an export-driven economy to being more consumer-oriented. As a result, Chinese manufacturers must tweak their production systems, manufacturing process, and product features to meet the quality requirements and their citizen’s needs.
Chinese Economy Addresses Environmental Concerns
With a consumer-oriented approach, China must develop frameworks that meet consumers’ demands and comply with high safety and environmental standards. The country is endowed with limited natural resources, making it difficult for the Chinese economy to move away from their current production processes that make use of highly polluting, locally available, and cost-effective resources such as coal. But with the increase in the domestic pressure to devise environment-friendly processes that facilitate energy conservation, new challenges have cropped up for the chemical, manufacturing, and energy industries in the Chinese economy. The state authorities and decision-makers must keep the following in mind – ensure effective capital deployment and leverage green technology – to reduce carbon footprints.
Developing A Sustainable Economy
As the Chinese economy inches towards sustainability, the policymakers must address key issues such as opting for operational processes that fulfill their long-term objectives, enable supply chain optimization, support product innovation, and drive organizational efficiency. The Chinese economy is plagued with overcapacity in terms of structure and production, which can be solved by permitting M&A activities to optimize resources and facilitate asset scalability. The Chinese policymakers are constantly striving to strike a balance against the dynamic market forces to ensure the effective implementation of new structural policies. In order to build an environment-friendly and sustainable economy, China’s leaders and policymakers must understand that the transformation process is not a one-time thing; rather, it is a continuous and cumulative process.
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