The Chinese Academy of Social Sciences (CASS) revealed on Tuesday that China is now ranked second in terms of global new economic development. The United States leads the pack but the Chinese sector is slowly catching up.
According to China Daily, the China Industrial Competitiveness Report 2019 delivered by CASS based its findings on six different factors that revolve around a new economy, which is the development of information technology in several industrial sectors.
47 countries in total were studied based on their progress in innovation, globalization, digitalization, intelligence development, networks progress, and adaptation of greener and more environmentally-friendly models.
CASS noted in its report that while the U.S. is "undoubtedly the superpower globally," China is doing well in performance levels and it is the leading competitor of the American new economy as well as the rest of the world.
Among the notable sectors in China that saw significant progress over the past years is the energy vehicle industry. The sector accounted for 54.6 percent of the global market's overall new energy vehicle production figures.
Digital technology is another sector that propelled China to the second top spot in the global new economy market. Platform enterprises, in particular, have risen to the international stage and exemplified notable growth.
Zhang Qizai, one of the report's authors, pointed out that a new economy will help countries achieve better cooperation in various segments while establishing a "strong technological basis" for developing trade agreements that will benefit the parties involved equally.
Aside from industrial technology developments, China has also been quick to adopt cashless transactions, which is one of the biggest breakthroughs in financial technology (fintech) environments.
Industry experts believe the Chinese fintech circle will rise above other countries, especially with the full-blown support of Beijing. This was apparent in recent reports suggesting the People's Bank of China (PBOC) is close to launching its very own digital Chinese Yuan.
Furthermore, multiple economy groups have projected that China will soon overtake the U.S. economy, probably within the next 10 years or so. The Chinese economy's growth is expected to be bolstered by the country's fast adoption of fintech and new economic models.
Chinese companies have also been quick to adapt to consumers' appetite for new technology in finance, payments, banking, and related sectors. AliPay and its competitors are among the top payment platforms that Chinese consumers patronize.
China may still be several years away from the U.S. in the new economy but in fintech adaptation, the country is leading the way. It remains to be seen whether the upcoming digital currency will allow the world's second-largest economy to topple its economic rival.
