What is the 'Achilles heel' of the Chinese economy?
(Baonghean.vn) - Chinese media reported on May 16 that President Xi Jinping warned that the lack of innovation is China's "Achilles heel", and expressed concern that the country's economy is large but not strong.
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| Chinese President Xi Jinping. Photo: Getty |
The above comment by Chinese President Xi Jinping was made in a speech in January 2016, and was originally published in 2017 in a series of speeches by the Chinese leader.
The comment was later republished in a recent article in Qiu Shi, an influential bi-monthly journal of the Chinese Communist Party, amid economic strains due to a protracted trade war with the United States.
In the article, Xi Jinping gives a candid look at the problems facing China.
"Although our economy has soared to the second position in the world, it is only large but not strong, and 'bloating' and 'weakness' are quite prominent. This is mainly reflected in the lack of strength in innovation capacity, which is the 'Achilles' heel' of our economy," Xi Jinping stressed.
President Xi pointed out that China's technological capabilities are still at the low end of the global value chain, and the country's "reserves" in science and technology are far from sufficient.
"Overall, the atmosphere we have created and developed today is more favorable than ever before. However, at the same time, the disagreements, risks and struggles we face are unprecedented. If we are not careful, we may fall into the traps set by other countries," Xi said.
In an explanatory article accompanying the reprint of the speech, Qiu Shi also directly alluded to the trade war with the US, asserting: "China's economy is strong and resilient enough. The long-term positive trend is unchanged and will not change. We can certainly cope with various risks and challenges, including the Sino-US trade and economic disagreements"./.