Attracting China’s relocating industries

The ongoing struggle of the world’s second-largest economy against multiple challenges, such as geopolitical tensions with the West, troubled property sector, overcapacity in the manufacturing industry, and local government indebtedness to sustain economic growth, would lead many to believe that it is fading rapidly, even if it is not over yet. However, the dragon country seems to be undertaking strategic economic planning to mark a new phase of transition by transforming its development model as it has done repetitively in the past five decades to stay on the growth trajectory. Delivering his maiden work report at the National People’s Congress, Chinese Premier Li Qiang has announced an ambitious 2024 economic growth target of five per cent, vowing a new leap forward through accelerated industry modernisation and “development of new quality productive forces”, which means a “systematic shift to high-end, smart and clean manufacturing industries” by diverting more resources for tech innovation as Beijing seeks to curb industrial overcapacity.