Consumption and innovation will be the two major growth drivers in China in the years ahead as the economic giant moves into its next phase of expansion, a JPMorgan Chase expert said Thursday.
In the next three years, China's consumption will grow from the current $4 trillion to $6 trillion — an addition that is roughly equivalent to the size of Germany's consumer market, said Jing Ulrich, JPMorgan Chase's managing director and vice chairman of Asia Pacific.
On innovation, the Chinese government is not only encouraging technology companies to go abroad, but also urging old industries such as manufacturing to adopt new ways of doing business. That will lift the country's growth prospects, added Ulrich, who is a well-known expert on the world's second-largest economy.
Speaking from the sidelines of the Fortune Global Forum in Guangzhou, China, Ulrich highlighted China's newest inventions: "China's payments system is number one in the world in terms of size and sophistication, and also the sharing economy. So we're really seeing innovation taking hold in the whole economy."