1. Market size and growth potential

Although China’s economic process rate is slowing after years of breakneck expansion, the dimensions of its economy dwarfs the majority others, be they developed or developing. Simply put, foreign companies cannot afford to ignore the world’s second largest economy. In 2021, China’s GDP grew by 8.1 percent to achieve US$18 trillion. With this growth, China’s economy surpassed that of the complete 27-country EC, which stood at US$15.73 trillion. Already the world’s second largest economic system, China’s economy isn't done growing either. With a population of 1.4 billion, China’s GDP per capita was US$12,551 in 2021, about sixfold not up to that of the US. While China isn't absolute to eventually achieve GDP per capita on par with the US, the gap shows that there's still significant room for economic activity and household wealth to still grow before leveling off at a saturation. The British Consultancy Centre for Economics and Business Research (CEBR) projects China’s economy to continue growing at 5.7 percent each year through 2025 and so 4.7 percent to 2030, at which point it'll surpass the US to become the world’s largest economy. Although these growth rates are slower than within the past, they are available from the next base and reflect China’s transition towards becoming a high-income country.

2. Human resources and infrastructure

China continues to supply a novel and irreplaceable environment for manufacturing, with its vast proletariat, prime quality infrastructure, and other advantages. While much has been made from rising labor costs in China, these costs are often offset by factors like worker productivity, reliable logistics, and simple in-country sourcing. For example, in 2020, the common hourly cost for labor within the manufacturing sector was US$6.50 in China, compared to US$4.82 in Mexico and US$2.99 in Vietnam, two popular alternatives for manufacturing. However, while Vietnam’s labor costs in manufacturing are but 1/2 China’s, Vietnam’s productivity per worker is about one-third of productivity levels in China. Workers in China’s manufacturing sector tend to be more established, more educated, and better resourced than in competing countries, often making China a more cost-efficient option despite slightly higher wages. The breadth of China’s working class means the country’s human resources are highly adaptable to business needs, as companies are going to be ready to find workers and technical specialists experienced during a wide selection of fields. RELATED SERVICES KEEN TO EXPAND YOUR CHINA MARKET PRESENCE? OUR EXPERTS ON the bottom CAN HELP Further, China’s market is becoming an asset not only for its size and value efficiency, except for the standard of education. for example, the days instruction World University Rankings had 10 Chinese universities in its 2022 top 200 list – the foremost ever – including two within the top 20. Overall, China was the fourth most represented country within the complete rankings, with 97 universities, behind only the US, Japan, and the UK. The improving quality of China’s universities is reflective of the subsequent generation of Chinese workers that's more educated and competitive than previous ones.

3. Innovation and emerging industries

Once called an economy rife with copycats and counterfeits, China-based businesses are advancing to the forefront of innovation and experimental business models. Companies that don't listen to China won't just miss out on the market, but also the country’s increasingly dynamic innovation that's starting to influence trends worldwide. China’s spending on research and development is love about 2.5 percent of GDP, which is way on top of other countries at similar levels of development. This spending has contributed to the expansion of dynamic and innovative business models in areas like e-commerce, fintech, and computer science that are competitive with – or perhaps lead – advanced economies just like the US. One unique advantage for data-fueled innovation in China is that the size of its internet-using population. China has near a billion internet users, which is over the US and EU combined. About 800 million people in China use mobile payments on a commonplace – over eight times over the US – resulting in a world-leading fintech industry. RELATED SERVICES WHERE TO LOCATE YOUR INVESTMENT IN CHINA China’s tech ambitions are not any longer limited to the domestic market either. for instance, TikTok, which is owned by the Chinese company Bytedance, now has one billion monthly users, although the platform isn't available in China itself. This makes it the world’s sixth most used social media platform, far previous more matured platforms like Snapchat (557 million), Pinterest (444 million), and Twitter (436 million). As the case of TikTok shows, trends that began in China are setting out to influence trends worldwide. Consequently, it's becoming more important to be told from the Chinese market to tell business models and methods for global audiences. Beyond opening an unlimited market, investing in China positions international companies to realize experience with innovative products which will make them more innovative and competitive in their home countries.

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