A key strategy in China’s long term development plan has been to move away from labour intensive, low value added manufacturing (such as textiles, clothing and footwear) and encourage the growth of capital intensive, high value production, including high technology electronics. However China’s emergence as a major player in this field has generated tensions with a range of countries (including the United States in the lead up to the trade war), reflecting concerns around forced intellectual property transfer and corporate espionage, data security and government intervention. Actively addressing these concerns could reshape global technology markets.

For further details, please see the China Economic Update March 2021