From the Readers

Time to move up the value chain

(China Daily)
Updated: 2010-07-12 07:53

China has become the manufacturing center and economic powerhouse of the world, which is definitely a source of pride, given its industrial backwardness before the reform and opening up that started three decades ago. But it has picked the low-lying fruit in terms of economic development.

China has been labeled the center of cheap goods as opposed to hi-tech products. It is time it moved up the value chain and recast itself as a technological and innovation-driven economy supported by robust domestic consumption.

The revaluation of the yuan is an attempt by the government to try to reduce the country's dependence on exports and a signal that it attaches greater importance to the restructuring of its economic development model. The government has realized that low-end manufacturing and assembly lines are of little or no value to the supply chain. Value, instead, lies in knowledge and technology.

Low-lying fruits are easy to pick. What the government should aim at is sustainability. So it is good to see it has realized the importance of changing its economic growth model.

Lin Hu, via e-mail

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(China Daily 07/12/2010 page9)