China has a declared goal to become the leading country in science and technology, and for a variety of reasons, they are definitely on the right track to achieving their goal. China’s high tech manufacturing industry has been booming, and as the size of the industry has expanded, the number of enterprises has grown steadily. Though inevitably, with the increasing industry comes a need for an increase in jobs as well. The number of people employed in the industry increased by approximately 40% as compared to the five years prior. About 15.1% of people who worked in the manufacturing enterprise worked in the high-tech manufacturing industry.
The economic efficiency also increased quickly. The total profits of the high tech manufacturing industries in China was 723.37B Yuan, this was an increase of 165.5% as compared to the profit taken 5 years prior. The increase of economic efficiency meant that the economic state of China became more stable, and they would be able to allocate their resources more properly. Due to this, they were then able to increase their investment and expenditure in research and development (R&D). They were also able to increase their innovation capacity. The importance of these is that they are essentially investing in technology and future capabilities which can then be transformed to products, processes, and services. These services include China’s social media platforms, which take after the more popular applications being used internationally. Sites and apps such as WeChat, Weibo, and Renren provide services that allow citizens to interact with one another online, as well as accomplish certain tasks with a push of a button. Aside from paying bills, checking popular restaurants, and microblogging, they also bring to light some news that could otherwise damage the reputation of a country (Japan’s denial of the Rape of Nanking). The importance behind these products, processes, and services led to an increased investment and expenditure in R&D, with the sales revenue of new products experiencing rapid growth. This is one of the important R&D achievements of the enterprise as the sales revenue totaled 12,800B Yuan, a 125.3% increase as compared to the one taken 5 years before.
China’s information technology sector and financial technology sector has also experienced rapid growth. The output of the country’s IT sector has increased by 10% due to the high rated performance of smartphones, routers, and LCD panels. The gross profit of the IT industry experienced a surge by 16.1%. Due to their booming IT industry, they will expand their focus and put more focus on artificial intelligence. Meanwhile, their financial technology (fintech) sector has been booming as they lead the world in market size and total number of users. Capital markets are going after the internet finance industry quite aggressively due to the market size and also because consumer behavior is changing dramatically. One of the main factors that contribute to the fintech boom, is that China has an open and supportive environment. The People’s Bank of China openly expressed their support for tech companies to promote internet finance. Also, China already has a developed e-commerce sector, which mean around 30% of the Chinese population already use internet payment methods. Lastly, traditional banks have a lot to profit from when it comes to fintech, and have been aggressively investing in digital services.
China may not be the leading country when it comes to their technological sector. But, looking at their track record and how much they’ve accomplished in this decade alone, it is clear to see that it won’t be too long until they get there.