RESEARCH ON THE DEVELOPMENT PATHS OF CHINA’S SPORTS INDUSTRY FROM THE PERSPECTIVE OF GEO-ECONOMY: TAKING THE BELY AND ROAD INITIATIVE AS AN EXAMPLE - Наукові конференції
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RESEARCH ON THE DEVELOPMENT PATHS OF CHINA’S SPORTS INDUSTRY FROM THE PERSPECTIVE OF GEO-ECONOMY: TAKING THE BELY AND ROAD INITIATIVE AS AN EXAMPLE

27.10.2021 21:28

[Секція 10. Світова економіка та міжнародні економічні відносини]

Автор: Zhijiang Yu, Faculty of Economics and Management, Sumy National Agrarian University; Viktoriia Medvid, Faculty of Economics and Management, Sumy National Agrarian University


Abstract: In recent years, China's sports industry has developed rapidly, but it is also facing a series of problems such as extensive growth, export suppression, and structural imbalance. It is necessary for China to effectively integrate the sports industry into its own geo-economic strategy. This article focuses on the integration paths of China's sports industry from the Perspective of Geo-economy. The paper analyzes several typical sub-fields of China's sports industry, such as investment of sports infrastructure and construction, sports goods manufacturing industry transfer, embedded development of sports tourism industry, joint development of sports event industry, and "Internet +" emerging Industrial. This paper believes that the integration of these sub-fields and Chinese Geoeconomic strategy has far-reaching significance.

Keywords: Geo-economic strategy, One Belt One Road intervention, sports industry, the development path

1. Introduction

On November 8, 2014, at the "Strengthening Connectivity Partnership Dialogue", Xi Jinping clearly proposed to promote the Belt and Road Initiative (BRI) pragmatic cooperation and jointly build a community with a shared future for development. On March 28, 2015, the National Development and Reform Commission, the Ministry of Foreign Affairs, and the Ministry of Commerce jointly issued the "Visions and Actions for Promoting the Joint Construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road" (hereinafter referred to as "Visions and Actions"). The BRI has officially become a national development strategy [1]. 

Sports industry can help to meet diverse needs of people, protect and improve people's livelihood, expand domestic demand, increase employment, cultivate new economic growth points. More importantly, it can promote national spirit, enhance national cohesion and cultural competitiveness. Therefore, the best integration between China's sports industry and geo-economic strategy has far-reaching significance. However, China's sports industry has long faced a series of problems such as unbalanced regional development, extensive growth, and suppressed exports, so accelerating the realization of the best integration between China's sports industry and geo-economic strategy is helpful to fully release the vitality of sports industry. At the same time, this is also in line with the needs of China's national interests.

2. Key docking areas for the integration of China's sports industry and geo-economics

The State Council's "Regarding Acceleration "Several Opinions on the Development of Sports Industry to Promote Sports Consumption" document was formally put forward. The document puts forward specific development goals. By 2025, a system for sports industry with reasonable layout, complete functions and complete categories will be basically established. There is no doubt that the major development opportunities contained in the geo-economic strategy of "Belt and Road" are of great significance for the realization of the above goals. According to the actual conditions the geo-economic strategy of China, this paper believes that China's sports industry will focus on the following areas in the future:

2.1 Investment and construction of sports infrastructure

In recent years, China has accumulated a wealth of experience in the construction of complex stadiums such as Nest-type Beijing Olympic Stadium and other super-large Olympic Center. On the whole, China's sports infrastructure construction and development capabilities have reached a high level, with the advantages and conditions for going global. Statistics showed that China's sports construction industry created an added value of 15.90 billion yuan, an increase of 20.00% year-on-year which nearly 3% higher than the national construction industry in 2018. Labor productivity also reached 91854.78 yuan/person, 46.41% higher than the national construction industry labor productivity.

Interestingly, some scholars even proposed a term, that is "China's Stadium diplomacy". Take Africa as an example, according to incomplete statistics, in recent years, China has assisted in the construction of stadiums in Africa in more than 40 countries in Africa, with more than 80 large-scale stadiums and a total of 3 million seats. Among them, the construction of venues for African Football Championship has received Chinese stadium assistance or construction assistance, including Egypt in 2008, Angola in 2010, Gabon & Equatorial Guinea in 2012 (co-organized), Equatorial Guinea in 2015, Gabon in 2017 [2].

In the sense of architecture, sports stadiums, as a kind of architecture, must be imprinted with Chinese cultural symbols, they are also sculptures of Chinese spirit and the materialization of Chinese consciousness. the iconicity, heritage and influence of sports stadium are unmatched by other projects. More importantly, China's "stadium diplomacy" can strengthen bilateral trade exchanges and promote the smooth implementation of China's geo-economic strategy [3]. Therefore, with the growing demand for public facilities of sports service in various countries, China's sports industry can fully rely on its own comparative advantages in the field of sports infrastructure accumulated over a long period of time to increase cooperation, docking and linkage with countries along the BRI to achieve mutual benefit, win-win situation and sustainable development.

2.2 Sporting goods manufacturing industry

After years of accumulation and development, China's sporting goods manufacturing has developed into a world base and become an important force in the manufacturing industry. However, China's sporting goods manufacturing industry has to face the pressure of overcapacity and unreasonable industrial structure.

China's current geo-economic strategy is conducive to optimizing the division of labor in the chain of sports industry, promoting the coordinated development of the upstream and downstream industry chains and related industries, and realizing the sustainable upgrading of the sports industry, especially the sports goods manufacturing industry. On the one hand, China's geo-economic strategy meets the demands of countries along the Belt and Road. By virtue of their advantages of low labor cost, countries like Thailand, Indonesia, Vietnam and other Southeast Asian countries have laid a foundation for the transfer of China's sports goods industry. On the other hand, under the background of the current volatility of international commodity prices, the Fed's interest rate hike, trade protectionism and the increasingly complex geopolitical environment. China's current geo-economic strategy is particularly important for finding new export destinations for sporting goods.

2.3 The embedded development of sports tourism industry

On July 6, 2017, China National Tourism Administration and General Administration of Sport jointly signed and issued the Action Plan of "One Belt and One Road" Sports Tourism Development (2017-2020). The document guides the implement of sports tourism industry under the background of the BRI. This document designed a series of projects to attract sports tourist together with countries or regions along the routes, popularizing Chinese martial arts to countries along the routes, and establishing sports tourism trading platform of the BRI [4].

Up to now, various regions in China have created a series of sports tourism activities according to their own resources and cultural characteristics, including Guizhou International Kite Tourism Festival, Hebei International Ski Festival, Hainan Rounding Island Bicycle Race, Huangshan International Mountain Bike Festival, Hainan Rounding Island Bicycle Race, Hunan Dragon Boat Race, Gansu Horse Racing, Henan Shaolin International Martial Arts Festival, China-Mongolia International Equestrian Festival and so on. At the international level, the number of overseas tournaments organized by Chinese Sports Competition Company, China International Sports Travel Company and China Travel Sports Travel Agency is gradually increasing. The sports tourism market shows a development trend, the scale of tourism continues to expand, and the demand for tourism tends to be strong, which has laid a good condition for joint development and win-win cooperation with "One Belt And One Road" countries.

2.3 The development of the sports event industry

In the implementation of the "One Belt And One Road" geo-economic strategy, the Chinese government always believes that culture should be the first principle. Among them, sports events belong to the category of sports industry and sports culture, and are also the most active factor in sports activities [5]. The holding of sports events can not only promote the development of other industries such as clothing, construction, catering and transportation, but also provide platforms and opportunities for economic and trade cooperation between countries and regions along the Belt and Road. Furthermore, the "Vision Action" mentioned in the "Connecting People" that sports should be used as a bridge of communication and support countries and regions along the "One Belt And One Road" to host major international events. Therefore, sports events can expand the connotation and extension of the "One Belt And One Road" strategy effectively. In recent years, China has held a series of events themed on the Belt and Road, including marathon, cycling, sailing, martial arts, and ice-snow events, attracting athletes from countries along the route.

2.5 Cooperation and development in emerging fields of "Internet + sports"

With the efforts of Chinese Internet giants such as Alibaba and Tencent, the strong support of the industry, and the pursuit of Chinese consumers, "Internet +" and sports has achieved a perfect integration.

At present, China is working on the construction of cross-border communication trunk network and satellite information channel of countries along the One Belt And One Road. This will not only improve the level of international communication connectivity, but also greatly enhance the development level of "Internet + sports" emerging industries in countries along the Belt and Road.In addition, the pilot practice of "Internet + sports" industry in China and Europe has not only accumulated rich experience, but also laid a solid foundation for the popularization and integration of the emerging industries in the countries along the "One Belt And One Road". Therefore, "Internet + sports", as an emerging industry, has had a full range of internal strength and extroverted market.

3 Conclusion and suggestions

To sum up, under the guidance of China's geo-economic strategy, the embedding development of China's sports industry should be connected from a strategic height, and the appropriate points, lines and planes should be explored to achieve a development pattern of multi-point flowering, multi-line integration and integration. Suggestions are as follows:

Fields of China's sports industry should accelerate the pace of embedding into China's geo-economic strategy by making full use of existing multilateral cooperation mechanisms, such as Shanghai Cooperation Organization (SCO), China-ASEAN "10 + 1", Asia-Pacific Economic Cooperation (APEC), and emerging Strategic Platforms such as the Asian Infrastructure Investment Bank.

To speed up the transformation of sports enterprises from low-end processing field to technological transformation and sports product innovation through industrial transfer. Promoting scientific and technological cooperation with developed countries actively and China's high-end sports technology products to gradually occupy the high-end areas of the global industrial chain. Moreover, to build more powerful Chinese sports enterprises through overseas mergers and acquisitions or factory establishment with sports enterprises which famous in sports marketing, media and intermediary, or capital injection and co-ownership of world-renowned club.

References:

1. LI JH, Wei YJ.On the Impact and Development Opportunities of the “Belt and Road” Initiative to China's Sports Industry, Physical Education Revivew.2020,39(8):48-50.

2. Africa Cup of Nations = China's "sports diplomacy" 185 million USD to build 3 stadiums!, https://www.163.com/sports/article/CCO13IL400058781.html

3. Xue CQ, Ding LG, Chang W and Wan Y.“Architecture of‘Stadium Diplomacy’–China-aid Sport Buildings in Africa.”Habitat International, 2019, l90:1–11. doi:10.1016/j.habitatint.2019.05.004

4. Zhang XC, Wang YW, Zhou GL and Li CJ.Interpretation of Sports Tourism Development Plan under Belt and Road Initiative (2017-2020), Journal of Sports Adult Education. 2019,35(1):39-43.

5. Wang ZP and Zhu YC. Value，Dilemma and Strategy of Development of Sports Event Under the Background of the Belt and Road, Journal of Beijing Sport University.2017,40(1):1-6.doi:10.19582j.cnki.113785/g8.2017.07.001.



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