Five years ago, few would have expected that China would produce four of the top ten global Internet companies (by number of visitors) – Alibaba, Baidu, Tencent, and Sohu – as well as innovative multinationals like Huawei and Xiaomi. Nor would most have anticipated China’s increasing provision of global public goods, including its “one belt, one road” strategy, which aims to provide the infrastructure needed to knit Eurasia into a single vast market.
More remarkable news has just emerged: despite slowing economic-growth rates, China, together with Hong Kong, has recorded $29 billion in initial public offerings so far this year – almost twice the funds raised in US markets.
By any measure, the pace and scope of innovation in China has begun to increase. How has this happened, and why is it happening now?
This article first appeared in Project Syndicate on June 16, 2015.
The views expressed in this article are the author’s own and do not necessarily reflect Fung Global Institute’s editorial policy.