Country cannot rely old pillars to prop up economy

For several decades, China has built its economic strategy on four pillars: exports, foreign direct investment, fixed-asset investments and domestic consumption. Of these exports have played a vital role- they have drawn in FDI, underpinned investment in fixed assets and fueled domestic consumption.

Since the global financial crisis, China's export to its two largest customers - Europe and the United - have slowed down significantly, giving a new sense of urgency to the government's current plan to lift the nation's manufacturing base up the value chain.

Published in 2012, this article was listed as a 'must read' by the Wall Street Journal.
Sometimes it is good to reflect on the past, noting the progress we have already made, and considering what still lays ahead.

China's economic restructuring and industrial upgrading will be a gold mine for foreign investors in coming years.

As the United States grapples with persistent economic uncertainty, China finds itself at a difficult but anticipated turning point in its economic development model. Its dominant industrial base and market-share of global trade in basic, low-cost manufacturing is weakening.

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Attended by American Manufacturers, Mississippi Governor Haley Barbour and delegations from Dalian, Changzhou, Shanghai Foreign Economics & Trade Investment Group and Huachen Automotive Group Holdings Co., LTD.

An article published in 2006, predicting that “Many Chinese manufacturers will face financial distress in five to ten years. The effect will ripple through to the financial institutions which have lent relentlessly in favor of real estate speculation and capital expansion.”