Page 34 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.75, # 1, 2018, pp. 32-41

technologies, renewable energy sources, electrical cars or robotics, not to talk of
creative arts cooperation, could open a “new landscape” of thousands of applications
to new and traditional sectors.

China is investing a lot in improving the level of quality of its production systems
and has unique scale economy opportunities. However, what are the main obstacles?
Geopolitics and the related cultural milieu differences. In order to cooperate as peers
and to establish real win-win cooperation, it is necessary to go beyond the logic of
political blocs and the universalization of peculiar historical experiences, accepting
China’s own way to development (Parenti 2018).

In spite of different national perspectives, the EU-China trade and investment
exchange has been improving since China entered the WTO. Therefore, the new
opening-up steps planned by Chinese authorities are particularly promising to
Europe and the rest of the world. The same is valid for the new potential
opportunities with respect to China’s relaxation of rules for foreign investment in its
financial sector. This opening up set for June 30 – also as an incentive to lessen tariff
disputes – is a sort of revolution.

According to Bloomberg, “much as World Trade Organization entry in 2001
revolutionized the manufacturing industry, opening the financial sector could
transform how capital is allocated and wealth managed across China” and, I would
add, across the world. In the last 10 years, China’s National Bureau of Statistics
reported that Chinese bank savings reached 60 trillion yuan ($9.4 trillion), just a part
of the overall $42 trillion of China’s financial sector. Only a little bit more co-
participation of foreign financial firms in managing a part of these resources is a
great opportunity for the other foreign countries’ firms. Because of the new opening
up, Bloomberg Intelligence estimated, for example, that bank profits and life
insurer’s premiums could increase 10 times in the next 12 years, and the foreign
firms’ security market share could move from 1 percent to 5.4 percent (Scott and
Dormido 2018). However, it is necessary to establish an open cultural and political
playfield, recognizing and respecting all Chinese systems’ diversity, without judging
them through our lens, our historical experience and our ideological prejudices, as is
often the case.

Goals and Values in Chinese Global Approach

China’s miracle is fixed within his political-cultural milieu and his own system of
macro-micro objectives. For example, the two centenary goals (2021 and 2049,
respectively, a hundred years from the foundation of the communist party and the
People’s Republic) imply the necessity to build a moderately prosperous socialist

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