AI Drives a New Economic Cycle, Digital Trade Leads Global Trade's New Pattern

AI Drives a New Economic Cycle, Digital Trade Leads Global Trade's New PatternOn the afternoon of November 12th, the 2024 Global Digital Trade Expo, themed "Connecting the World, Goods Flowing Worldwide," grandly opened in Wuhan. Hundreds of guests, including leaders from relevant national ministries and industry associations, provincial and municipal leaders, diplomatic envoys, experts and scholars in the field of digital trade, domestic and foreign industry associations (chambers of commerce), and entrepreneurs, gathered in the Wuhan Living Room to discuss hot topics such as the digital economy and digital trade

AI Drives a New Economic Cycle, Digital Trade Leads Global Trade's New Pattern

On the afternoon of November 12th, the 2024 Global Digital Trade Expo, themed "Connecting the World, Goods Flowing Worldwide," grandly opened in Wuhan. Hundreds of guests, including leaders from relevant national ministries and industry associations, provincial and municipal leaders, diplomatic envoys, experts and scholars in the field of digital trade, domestic and foreign industry associations (chambers of commerce), and entrepreneurs, gathered in the Wuhan Living Room to discuss hot topics such as the digital economy and digital trade.

Mr. Xiang Songzuo, a renowned economist and president of the Greater Bay Area Financial Research Institute, delivered an inspiring speech titled "The Artificial Intelligence Era and New Trends in Digital Trade," sharing his latest thoughts and research findings on the development of artificial intelligence technology and the future trends of digital trade.

The Advent of the AI Era Will Usher in a New Economic Cycle

Mr. Xiang Songzuo believes that according to the long-cycle theory in economics, humanity has experienced approximately three economic cycles in the past 140 years, with short cycles lasting about 45 years and long cycles lasting about 60-65 years. Currently, various signs indicate that the next economic cycle is about to begin, expected to arrive around 2028.

He pointed out that disruptive technological innovation is the primary driver of long-cycle changes in the economy. The advent of the AI era will be the key factor in ushering in the next economic cycle. AI brings more than just technological advancements; it signifies a profound technological revolution that will reshape humanity's lifestyles, production methods, and even our understanding of ourselves and the world.

Mr. Xiang Songzuo used his experience of leading entrepreneurs on a visit to Silicon Valley to see AI companies like NVIDIA, Microsoft, and Google to illustrate the vast potential of artificial intelligence. He believes AI is not merely a simple technological revolution but the most profound one to date; it is not confined to a single industry or field but a complete transformation of lifestyles and production methods; it goes beyond simple calculations and playing games to encompass comprehensive and integrated intelligence.

He emphasized that the core of AI lies in the convergence of computing power, algorithms, data, and innovation. These factors interact and drive AI development at an exponential rate. Currently, AI has already impacted at least 25 industries, covering almost all familiar sectors, including internet platforms, social media, transportation, e-commerce, news, film and television, scientific research, intelligent risk control in banks, autonomous driving, smart cars, drones, military, smart sports, education, intelligent logistics, and more.

Digital Trade Emerges as a New Highlight in Global Trade

Mr. Xiang Songzuo used objective figures to showcase the booming growth of digital trade as a new highlight in global trade. He pointed out that digital trade grew by 8.8% from 2021 to last year, a rate significantly higher than the growth of global trade. Digital delivery reached 1.42 trillion yuan, while cross-border e-commerce reached 1.22 trillion yuan, with growth rates far exceeding those of overall trade.

China plays a significant role in global digital trade. He hopes entrepreneurs and industry policymakers seize this crucial trend and actively participate in the development of digital trade.

Six Major Trends in Digital Trade

Mr. Xiang Songzuo believes that six trends in digital trade deserve attention and research:

1. Innovative technologies like AI, big data, cloud computing, blockchain, and digital currencies are becoming the most powerful driving force behind digital trade. AI is profoundly transforming every aspect of the production supply chain, a trend that is unstoppable.

2. Global efforts to govern digital trade and the digital economy are intensifying. Understanding data presents a significant challenge. Data, as a new factor of production, possesses infinite growth potential, fundamentally different from traditional factors like land, resources, labor, and machinery.

3. Driving the development of technical and industry standards for digital trade. To promote the healthy development of digital trade, it is necessary to quickly develop and improve domestic and international standards to regulate digital trade activities.

4. Facilitating data transactions, data sharing, and cross-border data flows. Cross-border data sharing is crucial for future trade development. Only through data sharing can cross-border trade flourish.

5. Digitalization of the entire trade chain and industrial chain. The "five key articles on finance" proposed by the Central Committee of the Communist Party of China and the State Council include digital finance and technology finance as crucial elements. Driving the digitalization of the entire trade and industrial chain is the trend of future development.

6. Promoting the comprehensive application of digital currencies in digital trade and cross-border financial transactions. Digital currencies will become essential payment tools for future digital trade and cross-border financial transactions. Promoting the adoption of digital currencies will further stimulate the development of digital trade.

The Significance of the Wuhan Global Digital Trade Expo

Mr. Xiang Songzuo, with a special connection to Wuhan, having been born in Yichang and studied at university in Wuhan, said with passion, "This 'Hanzhou Expo,' the Global Digital Trade Expo, will become a crucial milestone in driving the rapid development of digital trade in China."

He believes the conference will inject new vitality into the development of China's digital trade, propel it to a new level, and offer new opportunities for global digital trade collaboration.

This grand event will bring together experts, scholars, entrepreneurs, and industry leaders from around the world to discuss trends in digital trade, share cutting-edge technological achievements, and promote digital trade cooperation. It is expected to make significant contributions to accelerating the development of China's digital trade and fostering global digital trade collaboration.