Story perspectives

China Transitions to High-Quality Production, Innovates Ahead?

2/2/2026

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Summary

Story summary

Lawrence J. Lau, a Hong Kong economist, says China is moving from output growth to high-quality production.
Since the 1978 economic reforms, China has shifted from increasing output to improving quality through smarter production methods.
Lau notes China excels at large-scale production.
Lau notes China adapts foreign technology.
He questions whether China can move from incremental improvements to groundbreaking innovations, citing Alipay and high-speed trains.

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Story summary

Lawrence J. Lau, a Hong Kong economist, says China is moving from output growth to high-quality production.
Since the 1978 economic reforms, China has shifted from increasing output to improving quality through smarter production methods.
Lau notes China excels at large-scale production.
Lau notes China adapts foreign technology.
He questions whether China can move from incremental improvements to groundbreaking innovations, citing Alipay and high-speed trains.