Covid-19 made 2020 a tempestuous year. The pandemic accelerated trends that had already emerged before the coronavirus struck，most notably weaker global economic growth and intensifying friction between China and the United States. The world economy is still struggling with these unprecedented challenges.

Looking back in history，we can see those pre-Covid-19 trends. If we examine the last 40 years of reform and economic opening，it is evident that they can be divided into three stages. The first was the market-oriented period from 1978 to 1998. It was an era of greater reliance on market-oriented reforms，specifically in labor，capital and land. This released a new vitality and helped create the conditions for the emergence of two groups of successful entrepreneurs who started businesses in 1984 and 1992.

The second stage was the era of industrialization from 1999 to 2008，during which China became the major supplier of global labor and the largest beneficiary of globalization. The third stage stretched from 2009 to 2018，and it featured economic prosperity and increased leverage ratios. In the period following the global financial crisis，the leverage ratio of governments，enterprises and individuals rose significantly. However，China ushered in a new era in 2019，and it is vital for companies to understand the new economic circumstances and seize market opportunities.

In the coming decade，there will be three main trends. Firstly，the preliminary stage of marketization will be basically completed. Dividends from the creation of a market system for land，labor and capital will gradually fade. That means reform must be deepened in order to unlock further dividends. This will be a key driving force for the economy. Additionally，there will be more stability in the value of real estate. Over the next two decades we will see rigid demand as well as demand from buyers who are looking to trade up and find better homes. Housing prices will remain fairly stable as the emphasis turns to homes needed for actual residence rather than for speculation. Prices will not plummet as they did in Japan during that country's prolonged stagnation，nor will they climb dramatically as they did over the last decade. Lastly，local governments will face greater pressure in funding for infrastructure development. They will need to strengthen financial security. Over the past few years，there were large numbers of public-private partnerships，but in the future，PPP projects will not be as prevalent. That will be partially offset by more special purpose bond offers by the government.