The size of the new economy stood at about 15.7% of China’s GDP in 2017, which encompasses strategic emerging industries such as new energy, new materials, biotechnology, high-end equipment manufacturing, new-energy vehicles, next-generation information technology, and energy-efficient and environment technology, explains the research team at Standard Chartered.
Key Quotes
“We argue that the opportunity in China is much larger than the new economy, and we believe this is important to highlight as the US-China trade conflict has clouded the outlook for some new-economy industries. In this report, we identify industries that will benefit from continued consumption growth and industrial upgrading.”
“Comparing consumer behaviour and industrial productivity across 56 industries in China and developed economies, we list the top 20 industries we think will benefit most from rising consumption and the top 20 likely to benefit most from industrial upgrading.”
“We estimate the total size of these industries at c.40% of China’s GDP and 2.5 times the size of the new economy. If China could lift the productivity of these industries to the level of developed economies, its economy would be 30% bigger than it is today, keeping everything else unchanged.”
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