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The Economic Landscape of China
Economist Robert Solow identified three key factors that drive a country’s growth: capital, labor, and technology. While building infrastructure and factories is essential, the real game changer is technology. This principle became evident as the team began their journey in Shenzhen.
Arrival in Shenzhen
Upon landing, the team was struck by the air quality, with an Air Quality Index (AQI) reading of just 31, a stark contrast to the pollution often reported in major cities worldwide. Their first encounter with Chinese technology came from a taxi driver using an app developed by Alibaba, which provided real-time traffic updates and speed camera locations. This level of technological integration was just the beginning.
Automation in Daily Life
At their hotel, the team encountered robots delivering food to rooms, a common sight in Chinese hospitality. They learned that Alibaba has been operating a fully automated hotel since 2018, showcasing the extent of automation in everyday life.
In China, cash transactions are becoming obsolete. The team discovered WeChat, an all-in-one app that combines messaging, video streaming, ride-hailing, and payment services, boasting 1.3 billion monthly active users. This app exemplifies how technology permeates daily life in China.
Electric Vehicles and Infrastructure
Shenzhen’s commitment to electric vehicles (EVs) was evident, with 99% of taxis being electric. The government has implemented a lottery system for gas vehicle number plates to combat traffic congestion and pollution, making EVs a more accessible option. The cost of running an electric vehicle is significantly lower than that of a gas vehicle, further incentivizing their use.
AI and Surveillance
The team observed the extensive use of AI in maintaining road discipline, with facial recognition cameras ensuring compliance with traffic laws. This level of surveillance contributed to a noticeable absence of traffic violations during their visit.
The Role of Technology in Industry
During their exploration of local factories, the team witnessed the impressive human-to-machine ratio, with one worker overseeing multiple machines. This highlighted the shift in labor dynamics, as factory wages have increased, dispelling the myth that labor in China is cheap. The competitive advantage of Chinese manufacturing lies in government support, infrastructure, and favorable credit conditions for foreign companies.
The Evolution of Shenzhen
Shenzhen’s transformation from a fishing village to a technological hub began in 1980 when it was designated as China’s first Special Economic Zone. This status attracted foreign investment and fostered rapid urban development. Today, Shenzhen is home to major tech companies like Huawei and DJI, reflecting its evolution into a center of innovation.
Cultural Insights and Cost of Living
The team gathered data on the cost of living in Shenzhen, revealing that renting a one-bedroom apartment outside the city center costs between 40,000 to 57,500 rupees. Public transport is affordable, and dining out offers a variety of options, albeit at a higher price point.
Contrary to common perceptions, the Chinese people were found to be hospitable and friendly. Many expressed admiration for Indian films, particularly those featuring Aamir Khan, indicating a cultural connection.
Lessons for Other Nations
The trip to Shenzhen provided valuable insights into the factors contributing to China’s success:
- Investment in Infrastructure and Education: China’s focus on developing infrastructure and education has created a conducive environment for innovation.
- Upskilling the Workforce: Emphasizing skill development has resulted in a highly competent workforce ready to adapt to changing demands.
- Embracing Technology: Integrating technology into daily life and industries can significantly enhance efficiency and innovation.
- Bold Ambition and Strategy: China’s journey underscores the importance of having a clear vision and actionable strategies to achieve economic growth.
Conclusion
The question is not whether India can become the next China, but rather how it can learn from China’s journey while forging its own path. By focusing on infrastructure, education, and technology, India can harness its vast human resources to drive economic growth. The experience in Shenzhen serves as a reminder of the potential that lies in embracing change and innovation.