China's new policies aim at supporting manufacturing, innovation and society

CGTN Europe spoke to Xiaolin Chen, Head of International at KraneShares.

Transcript

00:00Thanks so much for your time. Let's start with that last part of the report, a second measure now

00:04to support young families with that reduced or even scrapped kindergarten fee for that last year.

00:11Significant investment from the government. What is the strategy behind this policy?

00:17Thank you again for having me on your show. This is a very key step, one of the most important steps

00:25strategically that China is planning to deal with a couple of issues of consumptions

00:31and supporting the young families, family like daily costs and also long run to deal with the demographic issues here.

00:40Clearly, they're trying to encourage the young family to have considered to have more children if possible

00:46in a way of offering them immediate financial help to the family by lowering the kindergarten costs

00:53and also, like you mentioned earlier on, providing financial support on a yearly basis

01:00for the young children, young families to help them in the long term.

01:04This obviously is also part of the strategy, if you remember well, last year or the year before,

01:10they also introduced the cutting of the after-school tutoring costs for families.

01:15So in any ways they're trying to do is, one, reduce your family running costs,

01:20second, providing more subsidies for the families who can afford more children to have.

01:27In the long run, this is really helping continue to boost our deal with the issue that they didn't have.

01:33You know, the fertility rates was very low for a few years now.

01:37Hopefully, with this kind of policy, inch by inch, step by step,

01:40it would help the family to feel eased the pressure on cost front.

01:45Let's move on to these guidelines now to support advanced manufacturing.

01:49What is the motivation behind that move?

01:53Very clearly, China has continued to innovate, continue to lead in this technology innovation.

01:58This huge wave of AI, technology, innovation, China is can't and can't afford to be left behind.

02:05And China continues again and again to prove that they are in the competition, if not leading the competition.

02:13This is a structural shift that is happening in China in terms of advancing the innovation,

02:20advancing what they used to know as a manufacturer hub,

02:24but advance those industries for them to have more, you know, technology supported,

02:29more of less dependent on labor, to have more efficiency of supply chain as a whole,

02:37to help the global manufacturing supply chain to continue to develop and continue to get more market shares as one country.

02:45These measures will definitely help, you know, China to stay, one, innovative,

02:50and also financially to be supported by different measures and policies being put in place.

02:55That will please China well ahead, if not leading in many industries.

03:02Well, thank you so much for your insights.

03:04Much appreciated.

03:05That is Charlene Chen, Head of International at CraneShares.