Although it’s only been a few weeks since I arrived in China for my extended research trip, I’m already impressed by the level of innovation that is visible throughout everyday life in urban centres.
From a consumer perspective, exciting technological innovations are happening in areas such as mobile payments, Internet-based micro-lending and e-commerce.
These innovations offer consumers convenience and lower prices, improve efficiency, expand markets for businesses and enable new services and business models to crop up on a regular basis. All this adds up to a huge, and growing, domestic market for consumption and services and handsome rewards for creative and entrepreneurial people.
These opportunities, combined with a large, well-educated and ambitious talent pool, give China an enviable advantage over many other countries, which will surely drive continued economic growth.
I believe that in the not-so-distant future Chinese companies will compete with international rivals less by leveraging cost advantage, as has been the case in the past, and more on strong innovation. This, in my mind, is a game changer.
It’s also worth noting that transportation in China’s urban centres is much, much more convenient than my experience at home. Thanks to extensive subway networks and a world-class, high-speed railway system (built in the last decade), getting around is less painful and traveling between major cities can even be enjoyable – something I bet Toronto’s frustrated transit users might find hard to believe.
If you have any questions about the work I’m doing in China or anything else related to the Funds, please feel free to leave a comment below.
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