China’s growing economy offers huge opportunities for businesses and budding entrepreneurs to enter a growing market.
The originally export-orientated powerhouse, has become more internally focused in recent decades as its developments shift towards delivering sustainable, green growth and innovative business models.
China, the largest country in the world by population, accounts for roughly 20 per cent of the world’s population, making it the second-highest purchasing power parity globally.
For companies with overseas aspirations in Asia, China seems like the perfect destination for expansion. But its lengthy procedures make it difficult for many startups to enter the complex market.
Benefits of Doing Business in the Far East
1. An essential part of the global trade system
Whether it is buying or selling, China is one of the most important trading nations – it is the world’s largest exporter and the second-largest importer of merchandise.
2. One of the world’s largest digital economies
From artificial intelligence to cloud computing, China is now a leader in innovation. In 2018, for example, the Chinese spent USD41.51 trillion through mobile payment platforms – more than 28 times the amount spent five years ago.
2. An enormous market for consumer goods
There are 400 million young consumers in China. Not only is their spending power growing, they are increasingly interested in foreign brands.
4. Most attractive for inbound investment
China is one of the most attractive inbound investment destinations globally. If your strategy is aligned with China’s economic development, then the potential is incredible.
5. An economy in transition
The country is transitioning – from high-speed to high-quality growth, exports to consumption, heavy industry to services and high-tech – as it aims to add value and become a high-income country by 2030.
China is a Powerhouse
Ray Dalio believes global markets are at a “very special moment,” with China on the rise and the relative power battles in the U.S., Bloomberg reported.
The billionaire founder and chairman of Bridgewater Associates said in a recent summit that this is because of “rapid development of the Chinese capital markets, the opening up of the markets to foreign investors, the relative attractiveness of them, and the underwightedness of global investors in them.”
”Just over the past four decades its economic changes have been remarkable.
China’s economy and development is gaining momentum and has made the country more competitive as businesses look to diversify and enter the Chinese market – rebounding at a faster rate than the U.S. following impacts of the COVID-19 outbreaks.
Dalio’s perspective comes from an analysis of history and in-depth experience of working in the Chinese market. In his latest edition of the series ‘The Changing World Order’, the investor reviews the rises and declines of the Dutch, British, and American empires and the rise of the Chinese empire to bring us up to the present.
Does Moving to China Appeal to You?
If a move to the far east is desirable to you view our guide to working in China.