BFA Asian Competitiveness 2014 Annual Report Released

BFA released the Boao Forum for Asia Asian Competitiveness 2014 Annual Report on March 26, 2014.

Through one year baptism in the international arena, the economies and enterprises in Asia show new characteristics in their competitiveness based on their inherited historical legacy.

The "Four Asian Tigers" maintains top competitiveness

Data of comprehensive competitiveness assessment show that the "Four Asian Tigers" continue ranking first in Asia in competitiveness. They rank from 1st to 4th.

Singapore again ranks first. For three consecutive years, its government efficiency has ranked first in Asia and its business service, transport infrastructure, and information highway have maintained internationally first-rate standard. In addition, Singapore performs excellently in controlling economic operation risks. Its unemployment rate remains as low as 2%. Its inflation rate drops and remains at 4.6%.

South Korea upgraded its comprehensive competitiveness to certain extent in 2013 and its ranking rose from 4th in the previous year to 2nd. With high-intensity public education expenditure and high-quality higher education and training system, South Korea ranks first in Asia in the number of per capita international patent authorizations, hence the rising of its competitiveness.

Although Hong Kong of China ranks lower than the previous two years, its comprehensive competitiveness remains at the 3rd place. Due to the decline of its export of creative products and high-tech products, its competitiveness in creativity has dropped.

Like the previous two years, Taiwan of China remains at the 4th place in comprehensive competitiveness in 2013. Although the proportion of its public education expenditure to GDP drops and the number of its per capita international patent authorizations relatively decreases, it remains a leading player in creativity.

China's competitiveness rises steadily

The mainland of China ranks 9th among the 37 economies, a position higher than that in 2012.

As the largest economy in Asia, China outshines others and keeps a steady economic growth at 7.7% under the active regulation and control by the Chinese government. It is barely affected by the financial turbulence in the emerging markets in 2013.

An important reason behind the rising comprehensive competitiveness of the mainland of China is the nonstop upgrading of its innovation capability and the continuous advance of its social sector. China has increased its investment in public education. Its higher education enrollment rate has risen to 30%. These measures have led to the increase in the number of its per capita international patent authorizations and in its export of creative products by a large margin. In social development, the Chinese government adopts a series of measures to strengthen disease control, solve environmental pollution, improve housing and medical care conditions, and step up the fight against corruption. However, it progresses slowly in information infrastructure and suffers a lack of pollution treatment facilities, which results in the drop of its competitiveness in infrastructure facilities. On the other hand, China's competition disadvantage is seen in its governmental efficiency in commercial administration. It needs further decentralization of administration.

Chinese enterprises play a more important role in Asia

First, among the top 300 Asian enterprises in comprehensive competitiveness, 41 are from the mainland of China, including two among the top 10; 40 are from Hong Kong of China, 21 more than those in 2012, including 1 among the top 10; and 9 are from Taiwan of China.

Second, in the banking industry, the Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China take the first four places among the top 10. In insurance industry, the top 3 are the China Life Insurance Company Limited, Australia SUNCORP GROUP, and China People's Insurance Group Inc. In addition, among the top 10 Asian banks, 5 are from the mainland of China and Taiwan of China and 3 from Japan. Among the top 10 Asian insurance enterprises, 5 are from the mainland of China, Hong Kong of China, and Taiwan of China, and 3 from Japan.

Source: boaoforum.org