As is known to all, China and India are the two largest consumers of gold. With the substantial economic growth, the demand for gold in the two countries is expected to increase significantly in the future. According to estimates by senior mining commentator Williams, China has consumed approximately 2,000 tons of gold in 2016, accounting for approximately 60% of the new gold produced last year.

According to the PwC model, China and India will be the world's two largest economies by 2050, based on parity purchasing power. In fact, China is already the first in GDP according to this standard, and India will catch up with developed countries according to the current growth rate.

In the 118-page report of Morgan Stanley (MS), China will undergo tremendous changes in the future, most notably from middle-income countries to high-income countries, with a time of 2024-2027. Morgan Stanley pointed out that China can escape the financial crisis caused by debt because the Chinese government has provided sufficient policy buffers.

Other transformations include shifting from a high-investment economic model to a high-consumption model and implementing tangible state-owned enterprise reforms. Although China is currently trying to shift from manufacturing to consumption and services, it emphasizes that high value-added manufacturing is also indispensable.

After Trump announced his withdrawal from the TPP, China may take the opportunity to dominate global trade and pursue its own cross-border trade agreement.

India implemented a demolition order last year, showing the government's determination to combat tax avoidance and cut cash transactions; in addition, it has carried out the largest tax reform since independence, after local taxation is self-determined, local protectionism and corruption. The phenomenon is not uncommon.

(Editor: Li Xingwang HF015)