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What is the current political environment of China? The political environment entails governmental structures, parties, and organizations. It also captures the decisions of the government agencies, institutions, laws, and regulations which affect the economy of a nation. Regarding China's political environment, generally, the situation has been stable since the Chinese Communist Party ( CPP) took over power. Th current leader, Xi Jinping, is the head of state ( president), CCP general secretary, and Central Military Commission chairman. He was elected into office in 2012/13 and reappointed in 2018, and he expected to continue in the position until he chooses to reassign or retire since the term limits were abolished. As of 2022, China has measures to reinforce its political rhetoric and control domestically and internationally. The main political challenge in China is addressing post- COVID-19 challenges related to economic, social, and public health. The main political agenda of the ruling party is to reshape the country around the principle of self-reliance. What is the current economic environment of China? China is the second largest global economy ( after the U.S.). It is also the largest exporter and has the most significant exchange reserves in the world. Nonetheless, despite having a fast- growing GDP of 2.3 percent in 2020, this was slowed by the effects of Covid-19. The government has been putting structures and policies to help the nation move from an investment- led growth model and lower risks associated with financial exposure and vulnerability. The GDP grew by 5.5 percent year-over-year (YoY) in 2023 H1. Also, the economy rose 6.3 percent in Q2, up from 4.5 percent in Q1 (KPMG,2023). This growth was due to consumption recovery, export resilience, and an upgrade in the property market. The country has been recovering from the COVID-19 effects, having removed pandemic-related restrictions and re-opened the market. The growth is in the early stages and varies in different sectors. If the nation works on further

improving household and corporate confidence, it has excellent potential to unlock faster economic growth. According to KPMG ( 2023), the projected growth of the GDP in 2023 is 5.5 percent, with expected economic growth of 5.2 percent in 2024. Despite the economic growth, there are still high unemployment rates among China's youth, and consumer expenditure is still low. The government might need more resources to help the economy rebound further. Besides the COVID-19-related effects, China still has challenges, such as an aging population, a shrinking workforce, and a lack of political goodwill and openness. There is still a significant inequality between the living standards of the urban towns and the remote ( rural ) areas, as well as the middle class and the lower class, which remains an excellent concern for the government and private investors. The main sectors of industry are manufacturing and agriculture. The country remains the most populated country in the world with the largest producer and consumer of agricultural products. The country is the leading global producer of cereals, rice, cotton, and tea. With livestock keeping, it dominates in sheep, pig, and fish production. Besides, it also leads to the production of ores such as tin, iron, gold, and zinc. It also has significant reserves of coal, oil, and natural gas, which makes China the fifth-largest oil producer globally (Santander,2013). According to World Ank (2023), the industry sector contributes to around 35 percent of China's GDP and has employed around 27 percent of China's population as of 2022. Firms make more than 50 percent of China's exports with foreign capital. The service industry contributes around 58 percent of the GDP and has employed over 48 percent of the workforce as of 2022. The service industry has not grown recently since the government has shifted its focus to manufactured exports (Santander, 2023).

Source: IMF – World Economic Outlook Database , Latest data available. Note : (E) Estimated data What is the current Technological and economic environment of China? China's sector has been at the forefront of embracing automation and digitization as the nation transitions to the post-COVID times. Tech forms have been one of the significant contributors to China's economy and social progress. During the COVID-19 pandemic, they used several technologies to address public health-related emergencies. For instance, China utilized AI in its pandemic response ( Weinstein, 2020). An instance is when JD.com ( a Chinese e- commerce) deployed a self-driving robot in Wuhan, which helped deliver supplies to hospitals dealing with COVID-19 patients.

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Also, there are new trends that have been emerging in Chinese tech companies. To start with, there is digitization of traditional sectors, especially in the labor-intensive sectors, which has helped in optimizing their outputs and performances. Some Tech giants in the country have started empowering partners in the construction, agriculture, and machinery sectors. For instance, Tencent Games and Tencent Cloud worked with Baoshan Iron & Steel Co., Ltd to create an immersive Convergence Digital Factory using real-time cloud rendering, virtual realities, and other game technologies. This helped the steel firm to boost its remote maintenance and product risk control. Another instance is in agriculture, where firms such as Iflytek can quickly diagnose crop disease and forecast farming space using technologies like speech and image recognition and extensive data analysis. Such created a platform for intelligent agriculture, which allows farmers to utilize digital planting and breeding on a fine scale (Chen, 2023). Another trend in technology is that Chinese tech giants are leveraging digital prowess to upgrade industries in the sectors of the real economy. For instance, the financial sector ( which is an essential component in the real economy) has deployed IT-based technologies such as cloud computing, which has enabled firms to buy, sell, or distribute a wide variety of software and digital resources online. Another instance is the manufacturing sector, where technological advancement has helped firms to create data-driven intelligent factories that have transformed manufacturing production and operations. Consequently, the decision-making process and operations have become more efficient. Chinese technological environment is taking a unique shape and will affect not only China's domestic space but the rest of the world. Domestically, technological advancement will lead to economic growth, while globally, several nations will borrow lessons from China on digital transformation (Chen, 2023).

References Chen, D. ( 2023, January 05). Will China’s Technology Be a Game-Changer in the Post- Pandemic Era? THE DIPLOMAT. Retrieved on November 6, 2023, from https://thediplomat.com/2023/01/will-chinas-technology-be-a-game-changer-in-the-post- pandemic-era/ KPMG (2023, August 9). China Economic Monitor: Q2 2023 . Retrieved on November 6, 2023, from https://kpmg.com/cn/en/home/insights/2023/08/china-economic-monitor-q3- 2023.html Santander ( 2013). China: Economic and political outline . Retrieved on November 6, 2023, from https://santandertrade.com/en/portal/analyse-markets/china/economic-political-outline Weinstein, E.S. ( 2020, August). China’s Use of AI in its COVID-19 Response. CSET. Retrieved on November 6, 2023, from https://cset.georgetown.edu/publication/chinas-use-of-ai-in- its-covid-19-response/

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