"China's Sharing Economy to Continue Growing... Impact of Novel Coronavirus Is Short-Term"

Martial Arts, Report on 'Current Status and Implications of China's Sharing Economy Market' Released
China's Sharing Economy Market in 2018 Up 42% from Previous Year

[Asia Economy Reporter Hwang Yoon-joo] Amid concerns that the spread of the novel coronavirus infection (Wuhan pneumonia) will shrink China's sharing economy industry, there is a forecast that China will enhance industrial competitiveness and create new businesses through the sharing economy in the long term.

According to the 'Current Status and Implications of China's Sharing Economy Market' released on the 3rd by the Korea International Trade Association's International Trade and Commerce Research Institute, China's sharing economy market in 2018 grew by 41.6% compared to the previous year, reaching 2.942 trillion yuan (approximately 496 trillion KRW). The growth rates by sector were productivity and manufacturing (97.5%), office (87.3%), and knowledge and technology (70.3%), in that order.

As an example in the manufacturing sector, Shengyibang is a collaborative production platform that shares 15,000 small factories across 23 industries. Shengyibang analyzes customer orders by dividing them into the smallest production units and outsources them to small enterprises with comparative advantages. Its average monthly growth rate reached 70%. As a result, the company's value exceeded 100 million yuan in less than a year after its establishment.

The Korea International Trade Association cited the following as the reasons for Shengyibang's growth: ▲ segmentation of customer demand by industry ▲ sharing platforms for each manufacturing stage ▲ open innovation.

Jeong Gwi-il, a research fellow at the Strategic Market Research Office, said, "China recognizes the sharing economy, which has advantages such as utilizing idle resources and labor, enhancing service supply and added value, and solving social problems, as a pillar of innovative growth." He added, "Not only the central government but also local governments are establishing related norms and systems and strengthening policy support such as funding and talent development, so the already huge Chinese sharing economy market will continue to grow."

Research fellow Jeong explained, "It is difficult to raise growth rates by relying solely on traditional industries. Although China's sharing economy industry may be affected by the novel coronavirus, it will inevitably grow from a long-term perspective."

He continued, "The manufacturing sector sharing economy, which shares equipment, manpower, and systems, helps the efficient allocation of resources and can enhance competitiveness, making it suitable for Korea's manufacturing-centered economic structure." He emphasized, "Our government should also establish an institutional foundation, and companies must strive to discover sharing economy business models, pursue open innovation, and actively expand overseas."

This content was produced with the assistance of AI translation services.