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Infographic: China's Icebergs
People x Technology: This sums up the underlying forces set to reshape China and the world. At its core, China has an increasingly affluent society – potentially the world's largest middle-class population – that is highly adaptive to new technology. Adding to this are rising global technological ambitions, particularly in artificial intelligence, that envisage a scenario of China as a formidable technology center. The immensity of change and opportunity becomes more visible the deeper we explore.
Iceberg #1: The Rise of New Growth Centers
In China, even small cities are big, with nearly 300 of them hosting populations of 1 million or more.
Half the population will reside in cities by 20501
Iceberg #2: Consumption at Scale
Liberalization in the private sector is shifting China from a state-backed to a consumption-led economy.
480 million Chinese will become upper middle and high income by 20304
Iceberg #3: Compounding Technological Advances
From mobile internet to artificial intelligence and flying cars, Chinese firms are innovating and going global.
China aims to be a global AI leader by 2030, as technology becomes key to shaping the global order
Sources
1 UN World Urbanization Prospects 2018;
2 Source: Economist Intelligence Unit 2018 estimates;
3 US Census Bureau, as of 1 July 2018;
4 Economist Intelligence Unit estimates;
5 Economist Intelligence Unit forecast as of 9 August 2019;
6 Boston Consulting Group x Tencent China Luxury Digital Playbook June 2019;
7 McKinsey "How the global supply landscape for meat protein will evolve," October 2018;
8 McKinsey, “The market for China autonomous vehicles,” January 2019;
9 IDC, as quoted in IDC, as quoted in China Daily 20 December 2018; http://www.chinadaily.com.cn/a/201812/20/WS5c1b3de2a3107d4c3a001eab.html;
10 2018 Hurun Greater China Unicorn Index;
11 Ernst & Young, “China is poised to win the 5G race,” 2018.
Any opinions, forecasts and forward-looking statements are valid as of the date indicated and are subject to change. For illustrative purposes only. We are not soliciting or recommending any action based on this material. Views are based on third-party data that has not been independently verified.
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