The expert said the end of the era of cheap labor in China

China can no longer build economic growth on cheap labor and is shifting to a technology- and service-based model. This was stated in the podcast by Alexander Sokolovsky, Doctor of Historical Sciences, Director of the Institute of Asian and African Countries of Moscow State University Alexey Maslov. The interview was read by Gazeta.Ru.

According to the Orientalist, the previous stage of development was completed in 2013-2015. The population is aging, living standards are rising, and workers are leaving factories earlier. The country compensates for the withdrawal of people from production by the rapid introduction of technology.

Now China is betting on operating systems, patents, microchips and services, Maslov said. He does not expect a return to the previous model.

“In this sense, China no longer relies on cheap labour. And it will never happen again, the expert said. Maslov believes that the emergence of generative artificial intelligence has returned US technological leadership. China, according to him, is still inferior to the Americans in microchips, but ahead of them in the practical implementation of AI.

The orientalist described the Chinese approach as AI+ – the application of models directly in medicine, telecommunications and unmanned taxis. The main criterion for such developments, he called the practical benefit and payback, rather than the demonstration effect.

At the same time, according to Maslov, China has maintained its development strategy since the reforms of Deng Xiaoping, changing tactical decisions. Many plans are designed until 2049, when China will celebrate the centenary.

The expert also considers the real estate crisis in the context of changing the economic model. According to him, while new areas of growth were not formed, construction provided a load of industry and incomes of the population. The created infrastructure, according to Maslov, can pay off for decades and even centuries.

After 2030, the Orientalist predicts a transition to a new high-tech China. According to him, algorithms will increasingly participate in decision-making, and Chinese technologies will influence the rules of the global market.

Maslov has been studying China and East Asia for over 40 years. In 2010, he created the School of Oriental Studies of HSE, and since 2021 he has headed the Institute of Asian and African States of Moscow State University.

Maniac Mirgorod convicted of 16 more murders after life sentence

Polish coal suppliers say they have blocked an important route ahead of winter

Moscow promised to respond harshly to new sanctions of Japan

The expert doubts that the Usoltsev family could disappear without a trace

Reliable news is always at hand - in the channel "MK" in MAX