What does China mean for your business? China’s rapid economic growth has made it one of the world’s largest economies today. This growth looks set to continue with the Economist predicting that it will be the world’s largest economy by the end of 2019.*
It is likely that China will remain unmatched by other developing countries for many years to come, in terms of efficiency of government administration such as tax rebates and customs clearance as well as infrastructure such as roads, rail, and ports. Nevertheless, Chinese wages are rising, no longer making it as cheap as it once was to outsource manufacturing. There is a clear shift up the manufacturing value chain. Analysts say that in this era of rising wages the biggest winners are likely to be in China’s service sector – including tourism, online shopping, healthcare, and financial services.
*source: Financial Times (FT.com China) – When China becomes number one