Foreign people around the world have really celebrated , the Lunar New Year, which this year runs from January 28 to February 4.
The beginning of spring is a major event in China, and this is the year of the timber snake. According to Chinese astrology, the characteristics of the reptile – registration, possible, option and intelligence – will change the year ahead.
It feels appropriate to look forward as the new solar year approaches and examine the prospects for the Taiwanese economy through these traits.
Registration of the primary financial forces
China is the world’s largest manufacturer, with output equal to the size of the next seven biggest competitors combined. China has been given the name of the world’s top producer, but it has come at a price. China is among the best 20 most polluted nations in the world, according to the most recent information.
So, it’s likely that over the next 12 months, there will be a continuing travel towards the registration, or upgrading, of traditional business sectors that have previously driven growth in China but are also big polluters.
This is a part of China’s wider effort to reduce emissions and lower its carbon footprint. These are the federal climate action plans, also known as , nationally determined efforts, as they are outlined in the National Climate Action Plan.
Potential for a rise in AI
China’s manufacturing center could change as a result of its adoption of AI, technology, and 3D printers. In addition, the country’s next-generation AI development plan sets out precise goals to create AI the primary force behind China’s industrial and economic growth. Hope to see more of this improvement in 2025.
China’s machine-learning market has experienced tremendous growth, and is predicted to grow by an average of 34.8 % a year over the next five times. The US is the main business leader and has the largest market share, but DeepSeek‘s most current release of the R1 robot has stirred up opinion.
The most affordable price for its R1 model is claimed to be around US$ 6 million, which is less than its US competitors, including Open AI’s ChatGPT-4, which is said to have cost more than$ 100 million.
It serves as an indicator of the pace of development and highlights the potential expansion of China’s AI industry, which is likely to help close the US-China border.
Options for international funding
We can anticipate opportunities for growth in advanced technology sectors like banking and green tech in addition to modernizing standard industries. China will continue shifting its focus to business in which its organizations can add thousands of benefit, such as in technology-related production.
To finance these industries, there must be significant expense, and two significant changes have occurred recently, acknowledging that private investment cannot suffice.
Second, the changes to China’s A-share industry, which went into effect in December 2024, may make it easier for a wider selection of international investors to provide. For instance, smaller amounts of money are required, and foreign cash is now appear from unlisted firms.
Next, in November 2024, China opened up its manufacturing industry to foreign investment by removing all access constraints.
We can anticipate that these changes will help China understand these new development areas and increase the amount of international capital in the country over the coming year.
The knowledge of revealing yourself
China continues to believe that opening its market in terms of purchase is wise, and that maintaining a strong connection to the rest of the world is crucial.
The geopolitical tensions with the US are a problem: the US president, Donald Trump, has said he will establish levies of 10 % on imports from China. But on a more positive note, breaking process last month, Foreign vice-president Han Zheng was invited to, and attended, Trump’s inauguration ceremony.
It’s an indication of the latest US government’s view of the importance of America’s connection with China.
The UK has a good chance to use the time to continue its efforts to rekindle its connection with China. During the subsequent visit to Beijing by the chancellor of the exchequer, Rachel Reeves, there was a conversation of a” stable and balanced UK-China relationship”.
Some people anticipate or desire a return to the “golden era” rhetoric of past UK chancellor George Osborne, who urged China to work together to ensure common prosperity in a speech at the Shanghai Stock Exchange in September 2015:” This stick up to make Britain China’s best partner in the West. Let’s work together to make this a golden decade for both of our nations.
However, greater dialogue with China may be possible, while at the same time carefully managing the UK’s relationship with the new US administration.
Watch out for other economic developments in China over the coming year, such as the progress of Chinese fiscal reforms and their effects on local and regional finances and income distribution.
Also, there is the matter of the real estate market. House prices are beginning to stabilize after significant declines in housing sales and investment in 2024.
China’s economy will face challenges in the year ahead. However, as the manufacturing giant begins to close the gap with the US, there are also some exciting opportunities for this company, particularly in the tech sector.
Karen Jackson is reader in economics, University of Westminster
This article was republished from The Conversation under a Creative Commons license. Read the original article.