External pressures and China’s aging population are two key economic hurdles facing the country over the medium to longer term, according to a top mainland policymaker.

China needs to respond to the “joint suppression from the external world” by turning adversity into motivation, said Han Wenxiu, executive deputy director of the General Office of the Central Financial and Economic Affairs Commission. This can be done by making breakthroughs in technology and innovation, he told the China Development Forum in Beijing on Saturday (March 25).

Han gave an example of China’s booming renewable energy and electric vehicle sectors, initiated as a response to global climate change and carbon neutral goals.

“The new external pressure will force us to adapt to the changes,” Han said. “China will accelerate the push for high-quality science and technology self-reliance and independence while expanding international innovation cooperation.”

Technology is also at the core of dealing with a shrinking and aging population, according to Han. Solutions include better education of workers to ensure training matches the needs of an upgrade to its industries. China will also seek further growth impetus from innovation, reform and opening up. 

China earlier rolled out a “dual circulation” strategy, under President Xi Jinping, with an emphasis on tapping into domestic markets and a reduced reliance on the global supply chain amid geopolitical uncertainties and US technology restrictions

China maintains that it’s open for businesses and stresses the importance of foreign firms playing an important role in its development.

“China welcomes companies from all countries to come and invest and expect foreign firms to hold a long-term view and develop extensively in the market,” Han said.

  - Bloomberg