Eco­nomic Com­pet­i­tive­ness of China and the US: Com­par­i­son, Dy­namic Change and Global Po­si­tion*

China Economist - - Articles - Ni Pengfei and Wang Haibo Na­tional Acad­emy of Eco­nomic Strat­egy, Chi­nese Acad­emy of So­cial Sciences

Re­search of com­pet­i­tive­ness of China and the United States is of great sig­nif­i­cance to en­hanc­ing Chi­nas eco­nomic com­pet­i­tive­ness and achiev­ing the ob­jec­tive of na­tional re­ju­ve­na­tion. By cre­at­ing a com­pet­i­tive­ness frame­work and a sys­tem of het­ero­ge­neous in­di­ca­tors, this pa­per in­ves­ti­gates the com­pet­i­tive­ness of China and the US in terms of cur­rent sta­tus, his­toric change and global en­vi­ron­ment. Our re­search led to the fol­low­ing find­ings: core fac­tors de­ter­mine the level of com­pet­i­tive­ness for China and the US; the na­tional com­pet­i­tive­ness of both coun­tries is evolv­ing to­wards struc­tural ho­mo­gene­ity; and China and the US lead most coun­tries in many com­mon ar­eas. China has the po­ten­tial to over­take the US in com­pet­i­tive­ness in the fo­ture. We sug­gest that China in­crease its com­pet­i­tive­ness by pro­mot­ing its ad­van­tages, ad­dress­ing its weak­nesses and fo­cus­ing on core ar­eas.

Key­words:

na­tional com­pet­i­tive­ness, com­par­i­son be­tween China and the US, fac­tor het­ero­gene­ity JEL clas­si­fi­ca­tion: N90; 051; 053

DOl: 10.19602/j.chi­nae­conomist.2017.04.01

1. In­tro­duc­tion

As coun­tries in­creas­ingly com­pete and co­op­er­ate with one an­other in to­day's world of glob­al­iza­tion, com­pet­i­tive­ness has be­come a key topic of re­search for academia and de­ci­sion makers. While an econ­omy must stay com­pet­i­tive to achieve last­ing pros­per­ity, com­pe­ti­tion is not a zero-sum game; in­stead, an econ­omy may de­rive its com­pet­i­tive­ness from co­op­er­a­tion with other economies for win- win re­sults. In for­mu­lat­ing a com­pet­i­tive­ness strat­egy to achieve last­ing pros­per­ity, it is im­por­tant to an­a­lyze and com­pare the com­pet­i­tive­ness, strengths and weak­nesses of dif­fer­ent coun­tries, as well as the op­por­tu­ni­ties and chal­lenges they face.

By launch­ing its re­form and open­ing- up pro­gram in its strate­gic pe­riod of op­por­tu­ni­ties over the past four decades, China has vastly en­hanced its eco­nomic com­pet­i­tive­ness and cre­ated a devel­op­ment mir­a­cle. In the face of a com­plex en­vi­ron­ment, China must keep abreast with the trends and pat­terns of world devel­op­ment, an­a­lyze the key fac­tors in the rise and fall of na­tions, and for­mu­late a com­pet­i­tive­ness strat­egy based on a proper un­der­stand­ing of its strengths and weak­nesses, a strat­egy that aims to achieve the goal of build­ing a mod­er­ately pros­per­ous so­ci­ety in all re­spects by 2020 and ba­si­cally achiev­ing mod­ern­iza­tion by 2050.

The rise of emerg­ing economies is trans­form­ing the world econ­omy. For the US as the largest ad­vanced econ­omy and China as the largest emerg­ing econ­omy, their rel­a­tive com­pet­i­tive­ness will greatly shape the pat­tern of global com­pet­i­tive­ness and their own

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