With the global economy stuck in the doldrums, businesses across the world are accepting the New Normal as reality, but at the same time looking for ways to survive. At a recent forum held in Korea, economists and experts in business advised that governments must be ready to take more expansionary fiscal policies to encourage the private sector to stay innovative and attract quality talents, which will eventually help them find new ‘Blue Ocean’ markets.
Associate Dean Liu Jing gave a lecture about the current status and future of the
Chinese economy at the WeeklyBiz 10th Anniversary Global Conference
hosted by Korea’s largest media group Chosun Media Group last month
Associate Dean Liu Jing of CKGSB shared insights about the current status and future of the Chinese economy, and examined its status as a ‘Blue Ocean’ in Asia, at the WeeklyBiz 10th Anniversary Global Conference, held in Seoul on October 6 under the main theme of “The Era of Change, Ask Where Korean Businesses Should Head To”. The conference was hosted by WeeklyBiz, a Saturday business section of Chosun Ilbo, Korea’s largest and most influential newspaper.
Over 1,000 attendees joined the forum with audience members and speakers from industry, academia and political circles across the world, all of whom are highly interested in listening to insights delivered by Professor Liu, because the role of China is considered crucial as one of the few markets with huge growth potential amid the global economic downturn. Speakers at the forum included Paul Krugman, the 2008 Nobel Prize Laureate in Economics; Alan Krueger, Former Chairman of the White House Council of Economic Advisors; and Sydney Finkelstein, Professor of Dartmouth College.
Associate Dean Liu Jing also joined a panel discussion with (from L to R) Sunny Yi, Partner and Head of Bain & Company Korea (moderator); Associate Dean Liu Jing of CKGSB; Professor Suematsu Chihiro of Kyoto University; and Visal Leng, Regional GM for APAC at GE Oil & Gas.
Associate Dean Liu suggested that China still has tons of growth potential at his lecture on the current status and future forecast about the Chinese economy at the second session “Asia, the Blue Ocean of the New Normal.” Many attendees and the host Chosun Ilbo paid close attention to his optimistic views, due to worldwide woes about the recent trend of the slowing economy.
“The current status of the Chinese economy is not in the best shape, but I would cautiously say that it can be quite optimistic in the long term,” he said. “China is still poor, so it has a lot of growth potential. It can grow further when the government’s public-sector reform initiatives succeed in reducing risks in government debts.”
He suggested two main factors that will drive China’s continuous growth: urbanization and the development of the service industry. Roughly 50% of Chinese regions have been urbanized so far, leaving plenty of potential for growth in domestic consumption in the rural regions, he explained. He added that the Chinese government’s strong supply-side reform initiative is driving growth in the service industry, expediting the transition to be a domestic-driven economy from an export-driven one. It is essential to transform into a domestic-driven economy to ensure sustainable growth for the next two decades, Liu emphasized.
Despite some risky factors such as bubbles in property prices, high corporate debt and development model as a fast-follower, Associate Dean Liu said that China will be able to reinvigorate its growth momentum by promoting innovative culture throughout business circles and academia, at a separate interview he had with WeeklyBiz. To achieve the goal, some of the best ways he suggested was to absorb top-notch talents to China, just like the US, and encourage collaboration between industry and universities. He mentioned CKGSB’s Chuang Community as a prime example of such an initiative.
“Entrepreneurship among young people is one of the competitive edges that China holds now,” Liu said. “Many College students in China work on founding their own business, and schools like CKGSB support them with start-up accelerating programs. I think it is a sign that China is in a transition period from emulating from other countries to creating innovation internally.”
Source: Chosun Ilbo WeeklyBiz, Nov. 5 edition
To read more about CKGSB insights offered at the forum, please click here.