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COUNTRYPROFILE CHINA

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IMD World Competitiveness Yearbook, Talent & Digital 2020: summaries

WORLD COMPETITIVENESSRANKING 2020

All data are available from theWorld Competitiveness Online.

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BASIC FACTSCapital

Land area (square km '000) 9,5632019

Exchange Rate (per $) 6.9082019

Population - market size (millions) 1,400.052019 1

Gross Domestic Product (GDP) (US$ billions) 14,342.92019 2

GDP (PPP) per capita (US$) 19,5042019 52

Real GDP growth (%) 6.12019 1

Consumer price inflation (%) 2.902019 48

Unemployment rate (%) 3.602019 15

Labor force (millions) 805.252019 1

Current account balance (% of GDP) 0.992019 31

Direct investment stocks inward ($bn) 1,627.72018 5

Direct investment flows inward (% of GDP) 1.092019 50

PEER GROUPS RANKINGSASIA - PACIFIC (14 countries) POPULATIONS > 20 MILLION (29 countries)

COMPETITIVENESS TRENDS - OVERALL

CHINAOVERALL PERFORMANCE (63 countries) Rank

Beijing

CHALLENGES IN 2020Increase effective investment to stabilize socio-economic

development.

China Institute for Development Planning, Tsinghua University

COMPETITIVENESS LANDSCAPE

2518 13 14

20

2016 2017 2018 2019 2020

2

38

613

56

30

47

3641

3023

6

28

20

11

22

10 10

3629

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Empl

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Pric

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Publ

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Tax

Polic

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Inst

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Busi

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Leg

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Soci

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Fra

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Prod

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Effi

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Labo

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Man

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Prac

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Att

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Tech

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Educ

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Economic Performance Government Efficiency Business Efficiency Infrastructure

75

3 35

2016 2017 2018 2019 2020

85

3 37

2016 2017 2018 2019 2020

• Increase effective investment to stabilize socio-economic development.

• Expedite new infrastructure development to boost industrial and consumption upgrading.

• Support small and medium-sized enterprises (SMEs) to mitigate the impact of the Covid-19 pandemic.

• Address challenges posed by people's ever-growing needs for better life.

• Facilitate marketization reform to invigorate micro entities and stimulate companies' potential.

Provided by:China Institute for Development Planning, Tsinghua University

IMPROVEMENTSWCY 2019

WCY 2020 DECLINES

WCY 2019

1.2.02 Current account balance 0.36 0.99 3.2.14 Labor force long-term growth -0.79

4.4.23 Environment-related technologies 6.39 9.26 1.1.18 Gross fixed capital formation - real growth 10.93

4.4.26 Pollution problems 3.74 5.22 1.5.01 Consumer price inflation 2.10

4.2.16 High-tech exports (%) 23.81 30.89 3.2.01 Compensation levels 4.08

1.2.12 Exports of commercial services ($bn) 226.39 281.54 2.3.08 Exchange rate stability 0.014

2.3.02 Cost of capital 3.98 4.84 2.1.02 Government budget surplus/deficit (%) -4.74

4.3.18 Number of patents in force 109.1 129.9 1.4.04 Employment - long-term growth -1.55

2.4.16 Labor regulations 5.41 6.20 4.1.07 Population - growth 0.38

3.3.10 Stock market capitalization (%) 31.44 35.88 2.1.04 Total general government debt (%) 49.72

2.4.11 Parallel economy 4.06 4.63 1.1.14 Real GDP growth 6.6

4.5.10 Student mobility inbound 0.11 0.13 1.1.15 Real GDP growth per capita 6.20

4.3.22 Knowledge transfer 5.27 5.95 3.2.20 Attracting and retaining talents 7.34

2.3.13 Bribery and corruption 3.84 4.31 3.4.06 Auditing and accounting practices 7.54

2.1.10 Tax evasion 5.07 5.68 3.2.22 Foreign highly-skilled personnel 5.79

3.2.18 Skilled labor 5.91 6.60 2.4.04 Foreign investors 5.27

COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

CHINACOMPETITIVENESS EVOLUTION

-1.28

0.018

-5.87

-1.79

0.33

53.55

6.1

5.45

The criteria below highlight the 15 biggest Improvements and the 15 biggest Declines in the overall performance of the economy. They are

determined by the largest percentage changes in the value of each criterion from one yearbook to the next.

WCY 2020

4.99

KEY ATTRACTIVENESS INDICATORSFrom a list of 15 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key

attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses

to the lowest.

5.12

2.90

5.56

5.75

6.86

7.08

7.7%13.8%19.2%20.0%21.5%23.1%24.6%26.2%33.1%39.2%39.2%42.3%46.2%55.4%60.8%

0% 10% 20% 30% 40% 50% 60% 70%

Competitive tax regimeStrong R&D culture

Effective legal environmentHigh educational level

Access to financingBusiness-friendly environment

Quality of corporate governanceEffective labor relations

Competency of governmentPolicy stability & predictability

Cost competitivenessOpen and positive attitudes

Reliable infrastructureSkilled workforce

Dynamism of the economy

WORLD COMPETITIVENESSDIGITAL RANKING 2020

All data are available from theWorld Competitiveness Online.

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Alpha AlphaLabelBeta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

6.5 4 4 2 28.5 4 4 2 211 4 4 2 2

2016 2017 2018 2019 2020

35 31 30 22 16

24 23 30 18 8

39 36 34 26 27

38 34 28 21 18

OVERALL

Future readiness

PEER GROUPS RANKINGS

ASIA - PACIFIC (14 countries) POPULATIONS > 20 MILLION (29 countries)

COMPETITIVENESS & DIGITAL RANKINGS

Technology

DIGITAL TRENDS - OVERALL

CHINA

OVERALL PERFORMANCE (63 countries)

OVERALL & FACTORS - 5 years

Knowledge

3531 30

2216

2518

13 14

20

2016 2017 2018 2019 2020

Digital

Competitiveness

9 9 97 6

2016 2017 2018 2019 2020

13 12 118 7

2016 2017 2018 2019 2020

8 13 40 2

27 18 31 3216

18 17 4 35

Knowledge Talent Training & education Scientific concentration

Technology Regulatory framework Capital Technological framework

Future readiness Adaptive attitudes Business agility IT integrationThe direction of the triangle indicates the performance change from the last year: improved or stabledeclined

Overall Factors Sub-Factors

N.B. This graph provides only a comparison of the country’s performance in the two rankings.

u Overall top strengths

w Overall top weaknesses

Subfactors 2016 2017 2018 2019 202021 23 18 19 13

54 53 46 37 40

3 3 21 9 2

Talent Rank Rank Rank

u Educational assessment PISA - Math 1 19 15w International experience 44 w 51 36 Foreign highly-skilled personnel 32 19 - Management of cities 11 38 u 1 Digital/Technological skills 12 - u 2w Net flow of international students 46 - 9 u 1

Subfactors 2016 2017 2018 2019 202038 32 26 20 18

27 22 30 32 31

46 47 40 32 32

Regulatory framework Rank Rank Rank

Starting a business 16 22 16 Enforcing contracts 5 20 36 Immigration laws 33 43 24 Development & application of tech. 23 27 w 56 Scientific research legislation 21 38 25 Intellectual property rights 42 36 7

Subfactors 2016 2017 2018 2019 202036 32 23 24 17

32 24 19 1 4

50 44 41 41 35

Adaptive attitudes Rank Rank Rank

E-Participation 9 11 40 Internet retailing 19 u 1 11 Tablet possession 31 29 15 Smartphone possession 17 8 w 56 Attitudes toward globalization 8 24 35

Training & education Scientific concentration

Talent

Robots in Education and R&D

IT integration

Business agility IT integration

Scientific concentration

Capital Technological framework

FACTORS BREAKDOWN - STRENGTHS AND WEAKNESSES

CHINA

FUTURE READINESS

TECHNOLOGY

Opportunities and threats E-GovernmentWorld robots distribution Public-private partnerships

IT & media stock market capitalization Communications technology

Regulatory framework

Capital

KNOWLEDGE

Technological framework

Entrepreneurial fear of failure

Agility of companies Cyber securityUse of big data and analytics Software piracyKnowledge transfer

Adaptive attitudes

Business agility

Venture capital Internet bandwidth speedInvestment in Telecommunications High-tech exports (%)

Funding for technological development Mobile Broadband subscribersBanking and financial services Wireless broadbandCountry credit rating Internet users

Training & education

Employee training Total expenditure on R&D (%)Total public expenditure on education Total R&D personnel per capitaHigher education achievement Female researchersPupil-teacher ratio (tertiary education) R&D productivity by publicationGraduates in Sciences Scientific and technical employmentWomen with degrees High-tech patent grants

WORLD TALENTRANKING 2020

All data are available from theWorld Competitiveness Online.

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Alpha AlphaLabel Beta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

Value

w 3.5 % 49w 1,755 US$ 50 16.43 ratio 38 13.26 ratio 44 5.51 Survey [0..10] 27u 6.64 Survey [0..10] 19 - % - 6.43 Survey [0..10] 31

Value

w 108.60 index 55 6.86 Survey [0..10] 29u 6.97 Survey [0..10] 16 4.94 Survey [0..10] 33 6.54 Survey [0..10] 36 5.45 Survey [0..10] 32 11,684 US$ 48 155,675 US$ 34 20.14 % 38 5.83 Survey [0..10] 32w 53.45 micrograms 59

Value

-0.05 % 48u 6.60 Survey [0..10] 14 6.46 Survey [0..10] 31 5.22 Survey [0..10] 44 5.76 Survey [0..10] 35u 7.56 Survey [0..10] 18 - % - 7.05 Survey [0..10] 24 6.72 Survey [0..10] 29 5.85 Survey [0..10] 42w 0.13 number 55u 579 Average 1

Investment & Development 2020 Rank

Health infrastructure meets the needs of society

2020 Rank

Total public expenditure on education Percentage of GDP

ApprenticeshipsEmployee training is a high priority in companies

Readiness 2020 Rank

Educational assessment - PISA PISA survey of 15-year olds

Appeal

Exposure to particle pollution Mean population exposure to PM2.5, Micrograms per cubic metre

Labor force growth Percentage change

Index of a basket of goods & services in the main city, including housing (New York City = 100)

Skilled labor is readily available

Cost-of-living index

Female labor force Percentage of total labor force

Pupil-teacher ratio (secondary education) Ratio of students to teaching staff

are sufficiently implemented

Total public exp. on education per student Spending per enrolled pupil/student, all levels

Pupil-teacher ratio (primary education) Ratio of students to teaching staff

Management education meets the needs of the business community

Language skills are meeting the needs of enterprises

Student mobility inbound Foreign tertiary-level students per 1000 inhabitants

Primary and secondary education meets the needs of a competitive economy

Graduates in Sciences % of graduates in ICT, Engineering, Math & Natural Sciences

University education meets the needs of a competitive economy

Finance skills are readily available

International experience of senior managers is generally significant

Competent senior managers are readily available

Justice is fairly administered

Gross annual income including supplements such as bonuses, US$

Remuneration of management Total base salary plus bonuses and long-term incentives, US$

Effective personal income tax rate Percentage of an income equal to GDP per capita

Attracting and retaining talents is a priority in companies

Worker motivation in companies is high

Brain drain (well-educated and skilled people) does not hinder competitiveness in your economy

Quality of life is high

Foreign highly-skilled personnel are attracted to your country's business environment

Remuneration in services professions

OVERALL PERFORMANCE (63 countries)

IMD World Talent Ranking 2020

CHINA

4240

39

4240

45

4240

42 42

5554

51

5556

36

3032

31

26

2016 2017 2018 2019 2020

Overall

Investment &Development

Appeal

Readiness

42

5640

26

Investment & Development

Appeal

Readiness

The direction of the triangle indicates the performance change from the last year: improved or stabledeclined

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IMD WORLDTALENTRANKING 2020

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2020

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