1. China's new quality productive forces
At 14th National People's Congress (NPC), President Xi Jinping stressed developing “new quality productive forces” (『新质生产力』). [1]
What do new quality productive forces mean?
New quality productive forces mean more advanced competitive productive industries and better lives for the people. China is a country of “People First”.
New quality productive forces will apply AI, 5G/6G and Big Data to every industry including manufacturing industry, services industry and financial industry.
As a result, new quality productive forces will provide better, more convenient and less expensive products to the people.
In this sense, new quality productive forces will contribute to and advance China's "People First" principle.
Therefore, new quality productive forces are a dream of the people. But, new quality productive forces could be a nightmare for Western capitalists. Let me explain.
2. China's "EV Tsunami" could wipe out the car industries of the US, EU and Japan
China's BYD, the top EV manufacturer in the world, announced that it would launch less than $10,000 EVs. The BYD Seagull EV Honor Edition starts at $9,700 (69,800 yuan), 5% cheaper than the previous model. [2]
[BYD Seagull EV Honor Edition, which starts at $9,700]
In an interview, Donald Trump reportedly says, if he would be elected as US president, he would impose 60% customs duty over Chinese products. But, even if he does so, BYD's EVs will be still less expensive than US EVs. [3]
BYD can sell less expensive EVs not because of China's cheaper labor cost. Chinese workers wages are not cheap anymore. BYD can sell less expensive EVs because of smart manufacturing, applying AI, 5G/6G and Big Data, which the Western car manufacturers can not do.
Chinese manufacturing industry applies AI, 5G/6G and Big Data in the areas ranging from marketing, product design and product development to procurement, manufacturing process, inventory control, customer management and after-sales service etc. Every process is connected by 5G/6G and controlled by AI in a unified, systematic and intelligent way. In addition, automation and robots are used as much as possible. As a result, Chinese manufacturing industry can produce more excellent and less expensive products than the Western manufacturing industries.
Facing China's EV Tsunami, Apple decided to cancel development of EV, running away even before starting competition. Ford announced that it would rethink its EV strategy as losses pile up, competing with Chinese EVs. Mercedes-Benz is backing off its plan to sell only electric vehicles after 2030. [4][5][6]
Scared by China's EV Tsunami, Luca de Meo, CEO of Renault, has floated the idea of combining European EV manufacturing, inspired by Airbus. [7]
However, even if European EV manufacturers are merged, they can not be as competitive as Chinese EV manufacturers because Chinese EV manufacturers' strength comes not from their scale merit but from smart manufacturing, i.e., application of AI, 5G/6G and Big Data.
Also, China's speed of EV development and export is very fast. While European EV manufacturers are discussing the merger, China would dominate Europe's EV market.
Just like tsunami waves, China's "EV Tsunami" would wipe out car industries of the US, EU and Japan.
To make the West's nightmare worse, it is not only BYD, but Xiaomi is another big wave of China's EV Tsunami. Xiaomi, the second-largest manufacturer of smartphones in the world, launched EVs. Xiaomi announced that it would apply its AI and 5G network technologies to its vehicles, which means Xiaomi's EVs would learn to be more and more comfortable as drivers use them. [8]
[Xiaomi's first EV, Xiaomi SU7]
Consequently, Tesla too would be ousted from the market because it doesn't have AI and 5G technologies. Elon Musk wanted to take over OpenAi but failed. [9]
3. China's Tsunami will extend to other industries
Furthermore, China's Tsunami is not only in the field of EVs, but China's Tsunami will be generated in other industries as well. China's smart manufacturing, i.e. application of AI, 5G/6G and Big Data, will be extended to other industries too.
For example, China will apply AI to development of new drugs. AI is a very powerful tool to design new innovative drugs. Lots of new innovative drugs will be developed in China's pharmaceutical industry and exported to overseas markets.
In addition, by applying AI, 5G/6G and Big Data to a pharmaceutical industry, China would produce conventional drugs at less expensive cost. The Western pharmaceutical companies that enjoyed huge profits by selling vaccines for COVID-19 such as Pfizer and AstraZeneca would find their income rapidly shrinking in the near future.
Also, China would provide remote medical services such as remote diagnosis and remote surgery domestically and internationally by applying AI, 5G/6G and Big Data. Most excellent medical doctors and surgeons will gather in China's medical service companies and provide remote medical services for Asian and African patients.
In the field of IT industries, the US government has imposed ban and restriction over semiconductor export to China, believing export ban and restriction will damage Chinese IT companies such as Huawei.
However, Huawei has revived and countered not by producing conventional chips but by developing much more advanced AI chips.
AI chip equipped smartphones are the next generation of smartphones, which are much more intelligent and faster than conventional existing smartphones. Huawei has leapt forward to a more advanced and superior stage, surpassing the Western IT companies. [10]
China will also advance in the field of civil engineering, applying AI to planning and designing bridges, free ways, railways and other civil engineering projects, which will enable China to construct infrastructures in Global South even more efficiently, ousting the Western civil engineering companies.
In the field of aviation, China has successfully developed and started mass-production of C919, medium-range passenger jet. Replacing such aircraft as Boeing 737 Max and Airbus A320neo family, C919 will be used not only domestically but will be exported to South East Asian countries etc., where the demand for medium-range passenger aircraft is to increase very much.
In contrast, having problematic software and a lazy sloppy production line, Boeing 737 Max would be cancelled one after another by the world airline companies. Then, Boeing might be forced to spin off Boeing Commercial Airplanes Division. Boeing Commercial Airplanes Division might go bankrupted before long. [11]
In the area of education, China will apply AI widely and effectively. China's AI applied education from a basic primary level to a higher advanced level would become popular and be accepted and used all over the world. On the other hand, obsolete and out of date educational institutions such as the Oxford University will decline and perish.
4. BRICS digital currency and China's AI banking will undermine the Western financial industries
BRICS countries are planning to introduce common digital currency that they can use to settle international payments. [12]
Since the US government froze Russian assets of US dollars, the danger of using US dollars has been recognized by the world countries. Instead of US dollars, BRICS digital currency will be used more and more for the purpose of settling international payments, which will undermine US financial industry.
Also, Chinese banking firms will apply AI, 5G/6G and Big Data to various banking transactions and reduce transaction costs dramatically. Thanks to reducing transaction costs, Chinese banking firms will be able to provide loans at substantially lower interest rates than the Western banking firms. [13]
As a result, Chinese banking firms will increase their share in lending transactions especially consumer loans in Asian, African, South American and Pacific Island countries. The Western banking firms will decline and diminish in the coming decades.
5. The US, UK and EU would counter with every dirty, unfair and violent measure conceivable
As long as peaceful conditions continue, China's Industrial Tsunami will wipe out or cripple most of the Western industries. The Western countries would be filled with huge number of unemployed people.
Watching their money steadily losing, rich people of the US, UK and EU will become mad and resort to every dirty, unfair and violent measure conceivable to counter China's Industrial Tsunami.
For example, the US might make Taiwan to declare independence so that China-Taiwan War would break out.
However, even if the US stands on the side of Taiwan, China would be victorious in China-Taiwan War. China's naval blockade would make Taiwan surrender. The US, having a logistics problem, would not be able to fight effectively.
So, instead, the US might try to draw Iran into a military conflict so that the Strait of Hormuz would be shut off, hoping the stoppage of oil export from the Middle East would cause a serious economic blow to China.
However, if the US starts a war against Iran, the US will have to fight against China and Russia too. In March, China, Iran and Russia conducted a joint naval drill in the Gulf of Oman, which was a very effective deterrence against the US.
[A joint naval drill by China, Iran and Russia in the Gulf of Oman, March 2024]
Besides, the US, UK and EU might attempt to carry out secret clandestine biochemical warfare against China. The US used biological weapons against Chinese military during the Korean War. [13]
For example, the US, UK and EU might secretly spread biochemical toxic substances over Chinese rice fields and wheat fields so that Chinese crops would be damaged. US, UK and EU fertilizer companies operating in China might be used for that purpose. China needs to be vigilant against the possibility of the US, UK and EU’s clandestine biochemical warfare against China.
Meanwhile, the US, UK and EU will try to arm India and let it wage a war against China. Being obedient to the West historically, India might follow the US, UK and EU's malicious suggestion.
However, rather than a state, India is a combination of different races, religions and languages. If India embarked on rapid and extensive militarization, heavy social pressures of militarization and sharp confrontation between war-mongers and peace-seekers might cause India virtually broken apart.
Above all, India is a member of BRICS. Russia, South Africa and Brazil will persuade India not to be antagonistic against China.
6. G7 would surrender and beg China to impose self-restriction on EV export
The war generation of the US such as Joe Biden (age 81) and baby boomers such as Donald Trump (age 77) are vicious and self-centered, being obsessed by the notion that the US must be No.1.
But, younger generations of the US such as California Governor Gavin Newsom (age 56) are more conscience and objective. US younger generations can accept a fact that it is already the multi-polar world. When the war generation and baby boomers are forced to retire, the US would become less offensive and less aggressive. [14]
[California Governor Gavin Newsom visited China and met with President Xi Jinping, Beijing China, October 2023]
Eventually, having exhausted every dirty and unfair mean to counter China, hopeless G7 might issue a joint statement asking and begging China to impose self-restriction on EV export to their countries.
Being magnanimous and generous, China would kindly accept G7's begging, on condition that G7, especially the US, would accept and support the peaceful reunification of China and Taiwan.
After all, the American people don't really care, whatever would happen to Taiwan. A large number of the American people even don't know where Taiwan is. The US and other G7 countries would accept China's condition. A grand deal of the century would be made.
Thank you.
References:
(1) "Xi stresses developing new quality productive forces according to local conditions", March 5th 2024, Xinhua
(2) "BYD launches cheaper Seagull electric car with starting price under $10,000 to fuel price war", March 6th 2024, electrek
(3) "Trump floats ‘more than’ 60% tariffs on Chinese imports", February 4th 2024, CNBC
(4) "Apple cancels decade-long electric car project, source says", February 28th 2024, Reuters
(5) "Ford pulls the plug on EV strategy as losses pile up", February 7th 2024, The Register
(6) "Mercedes-Benz backs off plan to only sell EVs by 2030", February 23rd 2024, The Verge
(7) "At Geneva Auto Show, Renault Renews ‘Airbus’ EV Solution To Thwart China Plea", February 26th 2024, Forbes
(8) "AI makes a truly ‘smart’ car", February 27th 2024, CGTN Europe
(9) "Elon's crush on OpenAI", March 10th 2024, AP
(10) "Nvidia identifies Huawei as top competitor for the first time in filing", February 23rd 2024, Reuters
(11) "Boeing’s Pain Spreads to Travelers as Airlines Cut Back on Plans", March 27th 2024, BNN Bloomberg
(12) "BRICS Will Create Payment System Based on Digital Currencies and Blockchain: Report", March 5th 2024, CoinDesk
(13) "How Chinese banks are going about AI integration despite challenges", November 8th 2023, ET BFSI
(14) "Newsom argues consequences of Trump reelection would be 'profound and pronounced' ", January 29th 2024, ABC News
Disclaimer: The views and opinions expressed in this article are those of the author and do not reflect nor represent the policy or position of any government, party, or organization.
At 14th National People's Congress (NPC), President Xi Jinping stressed developing “new quality productive forces” (『新质生产力』). [1]
What do new quality productive forces mean?
New quality productive forces mean more advanced competitive productive industries and better lives for the people. China is a country of “People First”.
New quality productive forces will apply AI, 5G/6G and Big Data to every industry including manufacturing industry, services industry and financial industry.
As a result, new quality productive forces will provide better, more convenient and less expensive products to the people.
In this sense, new quality productive forces will contribute to and advance China's "People First" principle.
Therefore, new quality productive forces are a dream of the people. But, new quality productive forces could be a nightmare for Western capitalists. Let me explain.
2. China's "EV Tsunami" could wipe out the car industries of the US, EU and Japan
China's BYD, the top EV manufacturer in the world, announced that it would launch less than $10,000 EVs. The BYD Seagull EV Honor Edition starts at $9,700 (69,800 yuan), 5% cheaper than the previous model. [2]
[BYD Seagull EV Honor Edition, which starts at $9,700]
In an interview, Donald Trump reportedly says, if he would be elected as US president, he would impose 60% customs duty over Chinese products. But, even if he does so, BYD's EVs will be still less expensive than US EVs. [3]
BYD can sell less expensive EVs not because of China's cheaper labor cost. Chinese workers wages are not cheap anymore. BYD can sell less expensive EVs because of smart manufacturing, applying AI, 5G/6G and Big Data, which the Western car manufacturers can not do.
Chinese manufacturing industry applies AI, 5G/6G and Big Data in the areas ranging from marketing, product design and product development to procurement, manufacturing process, inventory control, customer management and after-sales service etc. Every process is connected by 5G/6G and controlled by AI in a unified, systematic and intelligent way. In addition, automation and robots are used as much as possible. As a result, Chinese manufacturing industry can produce more excellent and less expensive products than the Western manufacturing industries.
Facing China's EV Tsunami, Apple decided to cancel development of EV, running away even before starting competition. Ford announced that it would rethink its EV strategy as losses pile up, competing with Chinese EVs. Mercedes-Benz is backing off its plan to sell only electric vehicles after 2030. [4][5][6]
Scared by China's EV Tsunami, Luca de Meo, CEO of Renault, has floated the idea of combining European EV manufacturing, inspired by Airbus. [7]
However, even if European EV manufacturers are merged, they can not be as competitive as Chinese EV manufacturers because Chinese EV manufacturers' strength comes not from their scale merit but from smart manufacturing, i.e., application of AI, 5G/6G and Big Data.
Also, China's speed of EV development and export is very fast. While European EV manufacturers are discussing the merger, China would dominate Europe's EV market.
Just like tsunami waves, China's "EV Tsunami" would wipe out car industries of the US, EU and Japan.
To make the West's nightmare worse, it is not only BYD, but Xiaomi is another big wave of China's EV Tsunami. Xiaomi, the second-largest manufacturer of smartphones in the world, launched EVs. Xiaomi announced that it would apply its AI and 5G network technologies to its vehicles, which means Xiaomi's EVs would learn to be more and more comfortable as drivers use them. [8]
[Xiaomi's first EV, Xiaomi SU7]
Consequently, Tesla too would be ousted from the market because it doesn't have AI and 5G technologies. Elon Musk wanted to take over OpenAi but failed. [9]
3. China's Tsunami will extend to other industries
Furthermore, China's Tsunami is not only in the field of EVs, but China's Tsunami will be generated in other industries as well. China's smart manufacturing, i.e. application of AI, 5G/6G and Big Data, will be extended to other industries too.
For example, China will apply AI to development of new drugs. AI is a very powerful tool to design new innovative drugs. Lots of new innovative drugs will be developed in China's pharmaceutical industry and exported to overseas markets.
In addition, by applying AI, 5G/6G and Big Data to a pharmaceutical industry, China would produce conventional drugs at less expensive cost. The Western pharmaceutical companies that enjoyed huge profits by selling vaccines for COVID-19 such as Pfizer and AstraZeneca would find their income rapidly shrinking in the near future.
Also, China would provide remote medical services such as remote diagnosis and remote surgery domestically and internationally by applying AI, 5G/6G and Big Data. Most excellent medical doctors and surgeons will gather in China's medical service companies and provide remote medical services for Asian and African patients.
In the field of IT industries, the US government has imposed ban and restriction over semiconductor export to China, believing export ban and restriction will damage Chinese IT companies such as Huawei.
However, Huawei has revived and countered not by producing conventional chips but by developing much more advanced AI chips.
AI chip equipped smartphones are the next generation of smartphones, which are much more intelligent and faster than conventional existing smartphones. Huawei has leapt forward to a more advanced and superior stage, surpassing the Western IT companies. [10]
China will also advance in the field of civil engineering, applying AI to planning and designing bridges, free ways, railways and other civil engineering projects, which will enable China to construct infrastructures in Global South even more efficiently, ousting the Western civil engineering companies.
In the field of aviation, China has successfully developed and started mass-production of C919, medium-range passenger jet. Replacing such aircraft as Boeing 737 Max and Airbus A320neo family, C919 will be used not only domestically but will be exported to South East Asian countries etc., where the demand for medium-range passenger aircraft is to increase very much.
In contrast, having problematic software and a lazy sloppy production line, Boeing 737 Max would be cancelled one after another by the world airline companies. Then, Boeing might be forced to spin off Boeing Commercial Airplanes Division. Boeing Commercial Airplanes Division might go bankrupted before long. [11]
In the area of education, China will apply AI widely and effectively. China's AI applied education from a basic primary level to a higher advanced level would become popular and be accepted and used all over the world. On the other hand, obsolete and out of date educational institutions such as the Oxford University will decline and perish.
4. BRICS digital currency and China's AI banking will undermine the Western financial industries
BRICS countries are planning to introduce common digital currency that they can use to settle international payments. [12]
Since the US government froze Russian assets of US dollars, the danger of using US dollars has been recognized by the world countries. Instead of US dollars, BRICS digital currency will be used more and more for the purpose of settling international payments, which will undermine US financial industry.
Also, Chinese banking firms will apply AI, 5G/6G and Big Data to various banking transactions and reduce transaction costs dramatically. Thanks to reducing transaction costs, Chinese banking firms will be able to provide loans at substantially lower interest rates than the Western banking firms. [13]
As a result, Chinese banking firms will increase their share in lending transactions especially consumer loans in Asian, African, South American and Pacific Island countries. The Western banking firms will decline and diminish in the coming decades.
5. The US, UK and EU would counter with every dirty, unfair and violent measure conceivable
As long as peaceful conditions continue, China's Industrial Tsunami will wipe out or cripple most of the Western industries. The Western countries would be filled with huge number of unemployed people.
Watching their money steadily losing, rich people of the US, UK and EU will become mad and resort to every dirty, unfair and violent measure conceivable to counter China's Industrial Tsunami.
For example, the US might make Taiwan to declare independence so that China-Taiwan War would break out.
However, even if the US stands on the side of Taiwan, China would be victorious in China-Taiwan War. China's naval blockade would make Taiwan surrender. The US, having a logistics problem, would not be able to fight effectively.
So, instead, the US might try to draw Iran into a military conflict so that the Strait of Hormuz would be shut off, hoping the stoppage of oil export from the Middle East would cause a serious economic blow to China.
However, if the US starts a war against Iran, the US will have to fight against China and Russia too. In March, China, Iran and Russia conducted a joint naval drill in the Gulf of Oman, which was a very effective deterrence against the US.
[A joint naval drill by China, Iran and Russia in the Gulf of Oman, March 2024]
Besides, the US, UK and EU might attempt to carry out secret clandestine biochemical warfare against China. The US used biological weapons against Chinese military during the Korean War. [13]
For example, the US, UK and EU might secretly spread biochemical toxic substances over Chinese rice fields and wheat fields so that Chinese crops would be damaged. US, UK and EU fertilizer companies operating in China might be used for that purpose. China needs to be vigilant against the possibility of the US, UK and EU’s clandestine biochemical warfare against China.
Meanwhile, the US, UK and EU will try to arm India and let it wage a war against China. Being obedient to the West historically, India might follow the US, UK and EU's malicious suggestion.
However, rather than a state, India is a combination of different races, religions and languages. If India embarked on rapid and extensive militarization, heavy social pressures of militarization and sharp confrontation between war-mongers and peace-seekers might cause India virtually broken apart.
Above all, India is a member of BRICS. Russia, South Africa and Brazil will persuade India not to be antagonistic against China.
6. G7 would surrender and beg China to impose self-restriction on EV export
The war generation of the US such as Joe Biden (age 81) and baby boomers such as Donald Trump (age 77) are vicious and self-centered, being obsessed by the notion that the US must be No.1.
But, younger generations of the US such as California Governor Gavin Newsom (age 56) are more conscience and objective. US younger generations can accept a fact that it is already the multi-polar world. When the war generation and baby boomers are forced to retire, the US would become less offensive and less aggressive. [14]
[California Governor Gavin Newsom visited China and met with President Xi Jinping, Beijing China, October 2023]
Eventually, having exhausted every dirty and unfair mean to counter China, hopeless G7 might issue a joint statement asking and begging China to impose self-restriction on EV export to their countries.
Being magnanimous and generous, China would kindly accept G7's begging, on condition that G7, especially the US, would accept and support the peaceful reunification of China and Taiwan.
After all, the American people don't really care, whatever would happen to Taiwan. A large number of the American people even don't know where Taiwan is. The US and other G7 countries would accept China's condition. A grand deal of the century would be made.
Thank you.
References:
(1) "Xi stresses developing new quality productive forces according to local conditions", March 5th 2024, Xinhua
(2) "BYD launches cheaper Seagull electric car with starting price under $10,000 to fuel price war", March 6th 2024, electrek
(3) "Trump floats ‘more than’ 60% tariffs on Chinese imports", February 4th 2024, CNBC
(4) "Apple cancels decade-long electric car project, source says", February 28th 2024, Reuters
(5) "Ford pulls the plug on EV strategy as losses pile up", February 7th 2024, The Register
(6) "Mercedes-Benz backs off plan to only sell EVs by 2030", February 23rd 2024, The Verge
(7) "At Geneva Auto Show, Renault Renews ‘Airbus’ EV Solution To Thwart China Plea", February 26th 2024, Forbes
(8) "AI makes a truly ‘smart’ car", February 27th 2024, CGTN Europe
(9) "Elon's crush on OpenAI", March 10th 2024, AP
(10) "Nvidia identifies Huawei as top competitor for the first time in filing", February 23rd 2024, Reuters
(11) "Boeing’s Pain Spreads to Travelers as Airlines Cut Back on Plans", March 27th 2024, BNN Bloomberg
(12) "BRICS Will Create Payment System Based on Digital Currencies and Blockchain: Report", March 5th 2024, CoinDesk
(13) "How Chinese banks are going about AI integration despite challenges", November 8th 2023, ET BFSI
(14) "Newsom argues consequences of Trump reelection would be 'profound and pronounced' ", January 29th 2024, ABC News
Disclaimer: The views and opinions expressed in this article are those of the author and do not reflect nor represent the policy or position of any government, party, or organization.