BRICS member, China, said its economy is in transition. Leaders says it model of growth is shifting from traditional to innovative, with service industries displacing manufacturing.
CGTN’s Hu Nan has more.
The Chinese economy is at a turning point. The traditional manufacturing economy is giving way to an innovative, service-oriented economy. New models like the sharing economy, e-commerce platforms, and the internet-related service industry, are gaining wider attention.
E-commerce platforms in particular are becoming the driving force behind economic growth.
With over 440 million active users, Alibaba collects large amounts of data that provides insight into the Chinese consumer. This is allowing the company to expand beyond its original online marketplace past.
“We seldom label us as only an e-commerce platform now,” according to Alibaba Group Vice President Jing Jie. “We support our clients’ growth through our robust data and commerce technology infrastructure, which will help to elevate their overall business from product development, to brand-building, to rural penetration for this massive market.”
Tens of thousands of small commodity manufacturers are finding ways to survive due to e-commerce platforms like Alibaba.
“I was among the first batch of companies to post our products on e-commerce platforms, when they were considered a waste of money,” Shuangtong Plastic Supplies Company president Lou Zhongping explained. “Now, 70-80 percent of my products are sold online. I don’t have to do the supplier sourcing and client maintenance works, and that saves me much trouble and cost.”
Manufacturing and physical retail has seemingly suffered in the transition to the new economy, but behind the closed doors is the bustling digital highway.