China’s economy has passed through the initial wealth-building phase and is embarking on the next. The focus is now on the internal economy, with improvements in infrastructure, technology and quality of goods. But that’s not enough, so the current (thirteenth) five-year plan and the ones that follow are set to spread China’s remarkable economic formula throughout Asia. Export markets will still be developed, but the emphasis is shifting towards quality and technology, with Europe rather than America becoming the principal foreign market.
The redevelopment of the old trans-Asian trade route under the acronym OBOR (one belt one road) is central to this expansion. Not only is it a civilising route, bringing rapid industrialisation to Middle Asia, but it means Chinese production will get to European markets by rail in about ten days (goods are currently taking about fifteen days – but that time is expected to reduce significantly). Furthermore, European containerised quality goods and machinery can be shipped the other way with considerable cost savings.
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