China’s new plans for infrastructure development reflect this and is focused on 5G networks, AI, industrial Internet, inter-city transit systems, vehicle charging stations and data centres.
(Mar 27): Restore, Repair, Revive, Resuscitate or Remodel? These 5Rs define business investment decisions and are a precondition for the big R — Recovery. Examination of China’s economic and business response provides clues to how local businesses may survive, and to which businesses are better investments at current selldown prices.
Remodel is a major driver. The Chinese e-commerce site Taobao added 1 million new merchants during the China lockdown. They and other e-commerce platforms not surprisingly experienced more than 10% growth during this period. Ali-Health had a 7,000% growth rate so it is clear business will need to Remodel to embrace e-commerce and social media links in ways that are integral to their business model.
