China to boost competitiveness of services exports: CCTV

China to boost competitiveness of services exports: CCTV

China is poised to enhance the competitiveness of its services exports, according to a recent statement from the state-run China Central Television (CCTV). The initiative aims to position China as a global leader in the services sector, leveraging its strengths in artificial intelligence (AI) and digital infrastructure.

The move comes amidst a broader national push for computing power and a unified data market, as highlighted by the China Computing Power Conference held in Datong, Shanxi province [2]. The conference saw 10 provinces and municipalities join a unified platform designed to match business demand with underused resources across regions. This platform has already attracted over 100 service providers, 1,000 industry users, and nearly 100 AI models, indicating a significant commitment to digital transformation.

China's investment in AI and computing power is expected to contribute substantially to its GDP. According to an AI-computing-power assessment report published by the International Data Corporation and Inspur Information, AI could add more than 11 trillion yuan to China’s GDP by 2035 [2]. Furthermore, smart computing power is projected to grow by 43% this year, compared to a 18.8% growth rate for general-purpose computing power.

The announcement from CCTV underscores China's strategic focus on services exports, which aligns with its broader economic strategy. This move is also seen as part of an effort to normalize relations with South Korea, which has been strained since the deployment of the Terminal High Altitude Area Defense (THAAD) system by the U.S. Forces Korea in 2016 [3]. During a recent call between President Lee Jae-myung of South Korea and President Xi Jinping of China, both leaders expressed a commitment to developing a "strategic cooperative partnership" and promoting active economic exchanges and cooperation.

This initiative is likely to be well-received by investors and financial professionals, as it signals a concerted effort by China to diversify its economic growth drivers and enhance its global competitiveness. The focus on AI and digital infrastructure is particularly noteworthy, as it positions China as a leader in cutting-edge technologies that are increasingly crucial for global economic growth.

References:
[1] https://www.facebook.com/shanghaieyeSMG/posts/china-has-ranked-among-the-top-three-trading-partners-for-157-countries-and-regi/1208759367951364/
[2] https://www.scmp.com/economy/china-economy/article/3323046/china-bets-ai-pump-trillions-economy-amid-national-computing-push
[3] https://www.mk.co.kr/en/politics/11339266