Is China on the path to become a knowledge society?

Since 1978, the start of the 改革开放 (Chinese economic reform), China has experienced a tremendous growth. Nowadays China is the second largest economy in the world, but it is facing new challenges. China Integrated has focused on these new challenges in there latest report. They quote a CEIBS study: For both foreign (70%) and Chinese (72%) companies 'Finding & retaining talent' is the biggest Challenge cited in the survey. China Integrated concludes, that finding, training and retaining the right human resources will be the key factor for the future. It is a strong indicator, that the demand for high skill labor must be high.

What are the greatest management challenges facing your company? (Source: Ceibs Business in China Sruvey 2013, p. 17)

What are the greatest management challenges facing your company? (Source: Ceibs Business in China Sruvey 2013, p. 17)

Another indicator pointing towards a knowledge society is the fact, that China has started to focus on "Seven Emerging Strategic Industries" (e.g. Biotechnology, New-Generation IT) in their latest 5-years plan in 2011. Big internet and telecommunication companies such as Huawei are already big players based on the numbers of internationally filled patents. Furthermore in the CEIBS survey IP Infringements are not being cited as a main challenge, even by foreign companies. 

China Integrated also quotes a study of McKinsey that focuses on the demand and supply of labor in China. In the future years there is a considerable shortage of high-skill workers expected. China Integrated concludes, that China is on the path to quickly build a knowledge society, if it can overcome its biggest challenge - the reform of its education system.

Check on China Integrated for further information and more reports.