Zhu Guangyao: Indeed, the current development of the digital economy is leading the overall trend of global development. This year, with the breakthroughs in artificial intelligence and other technologies, I think we have entered the fourth industrial revolution, or the fourth industrial revolution has begun.
In fact, China is different from the past three industrial revolutions. We are in the first team and the first echelon, or the United States and China are now leading the development of the digital economy. Of course, we must admit the gap between China and the United States, that is, in the aspect of 0 to 1, the United States is indeed still playing a leading role. However, China has the largest application scenario of the digital economy, and we have indeed accumulated a relatively strong foundation in some innovative fields, talent training, and technical experts.
As you can see, the EU's recent research report on the digital economy and productivity competition chaired by former European Central Bank President Draghi clearly stated that there is a gap between Europe and the United States and China. Therefore, Europe must increase huge investments to catch up, but I think that in this process, the overall development trend of the digital economy is now in the next ten years, and it should be said that the fourth industrial revolution is in full swing. Because when it comes to infrastructure, the front end is the mobile phone that each of us uses, which is our platform. These are the front end. However, the key infrastructure at the back end is the data center, which is to ensure the operation of the network.
This kind of optical cable. Intercontinental optical cables are crucial. In the context of globalization, more than 99% of intercontinental data now runs through submarine optical cables. But in this regard, the United States has 3 of the world's 20 largest supercomputing centers, the United States has 17, Europe has none, and Japan has none. So, we are now in the first echelon. It is true that under the new development concept and the innovative theory of "innovation, coordination, green, openness, and sharing", we have made great achievements since the 18th National Congress of the Communist Party of China. But the challenge we are facing now is that the United States passed the Clean Network Plan in 2020.
The United Nations has clear data that 49% of global data is exchanged in the United States, 24% in Europe, 22% in East Asia, and 9% in China. However, if you cut off the intercontinental network, that is, decouple the United States and China, then the loss to the United States will be reduced by 12%, which means that the United States and China will lose 12%.
It is 49% and it will go to 37%, while China will drop from 9% to 7%, which will be a huge loss for both sides. The most dangerous thing is that in the next ten years, the fourth industrial revolution driven by artificial intelligence will be affected by this decoupling, and two parallel markets, two parallel supply chains, and the international monetary base will be affected.
The IMF estimates that the loss is 7%-12% of the global economy, which is 7 trillion to 12 trillion. As I just reported, the global economy was 105 trillion last year. So, such a huge economic loss. So, no country can bear it alone. The risk is extremely high. So, we
We must return to this process of globalization, return to major economies, and closely communicate important economic policies.
Then, another aspect is what the digital economy brings. I just talked about infrastructure, and now there is a special asset in the digital economy - cryptocurrency. For the past decade or so, the United States has unanimously believed that:
1. It has a huge destructive effect on international anti-money laundering and international anti-terrorist financing.
2. It has a huge impact on the market, because the sharp fluctuations in its value have a huge impact on the international financial market.
However, this year, the US policy has undergone a major evolution. First, the Republican Party platform clearly listed the development of cryptocurrency as its campaign platform. At the same time, it also clearly stated that China must be excluded. Trump also publicly said during the campaign that we must embrace cryptocurrency and deny that China will replace us. His vice president candidate, Vance, is a venture capitalist himself and has a large cryptocurrency asset.
Trump, the executive branch of the Biden administration, said that he would fire the chairman of the SEC, which is currently restricting the development of digital currencies, on his first day in office. But it was him, the current chairman, who approved 11 Bitcoin ETFs in New York in January this year.
The New York Stock Exchange, the Nasdaq Stock Exchange, and the Chicago Mercantile Exchange were listed. This marked the US government's recognition of the legality of Bitcoin. In July, its second coin, Ethereum, was listed.
Therefore, even though the current Securities and Exchange Commission of the United States, which Trump has accused of implementing various policy restrictions on the development of Bitcoin, and the entire Biden administration, their attitudes have actually undergone a fundamental change. Then, in emerging market countries, in the BRICS countries, in September this year,
Russian President Putin officially approved cryptocurrency. In fact, South Africa, Brazil, and India have already been doing it before. So, if we talk about the development of digital currency now, cryptocurrency does have a negative impact. We must fully realize its risks and harm to the capital market. However, we must study the latest changes and policy adjustments in the international community, especially the impact of such policies of the Republican and Republican parties in the United States, because it is a crucial aspect for the development of the entire digital economy. Thank you!
Ju Jiandong: Thank you, Minister Zhu. We recall that before 2015, China's digital currency technology was leading the world, and it was called mining at that time. Now nine years have passed, how far do you think we are behind?
Zhu Guangyao: Now it is actually closely related to the development of chips, because if you don't use it, what are we worried about? One is what I just said, that was said by the Americans and us at the G20, he insisted on saying this many times, just now anti-terrorist financing, anti-money laundering has been severely impacted, especially capital
The market is volatile. Is it? Yes. But how can we solve it in terms of supervision? It should be solvable. The gap between us now is that you donât participate. But I said, even if you restrict it, there will be transactions through underground channels, but you will not be able to use production because you are illegal.
Therefore, we have to study the new problem, that is, the communiqué of the Central Political Bureau meeting, to face the problem directly, discuss it, and solve it.
