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Prospect of China s future economy growth

VIEWS: 70 PAGES: 2

									Title:
Prospect of China’s future economy growth

Word Count:
382

Summary:
China will become the world’s safest and largest investment economy in
times to come given the following factors: huge market potential, rich
labour resources, comparative advantage in labour cost, sound corporate
governance and stable government and society. All these factors will
further attract the inflow of foreign capital into China. In short,
China’s economy will grow even faster in the future.


Keywords:
China market research, China market entry, market research China, market
entry China, China market entry strategy, source Chinese suppliers,
business partners matching


Article Body:
China will become the world’s safest and largest investment economy in
times to come given the following factors: huge market potential, rich
labour resources, comparative advantage in labour cost, sound corporate
governance and stable government and society. All these factors will
further attract the inflow of foreign capital into China. In short,
China’s economy will grow even faster in the future.

In the next ten years, China’s economy will still increase at a rate 7% -
8%. In 2020 years, should price index remains the same as today, GDP will
amount to 38 trillion, per capita GDP will reach 26,000 yuan.

However, the level of per capita GDP is still very low in China at the
moment, GDP per capita’s growth is still at a slow rate. GDP per capita
will have to be further increased in order to raise China’s standard of
living so as to bridge the present income gap between the rich and poor.
Satisfaction of consumers’ needs can be the main driver in raising
China’s living standards. Domestic demand will increase as the economy
grows. Therefore extensive production of goods and services can further
push and sustain the economy’s growth.

Moreover, there are abundant human resources in China, and labour cost in
China is much lower than the other industrialized countries. China’s
education system is also being fast developed, thus more people will
achieve higher level of education than in the past. With comparative
advantage in cheap labour cost and increase of human capital brought
about by education, future for China’s economy can be only even brighter.

China’s labour force will get even bigger as the China is urbanizing at a
fast pace, changing from a rural and agricultural society to an urban and
industrialized society. Through this transition, more manpower can be
utilized. Urban infrastructure will be further enhanced and an increase
in urban population will bring about higher consumption level, thus
driving the economy further.

The presence of such a big market, coupled by the increase in consumption
power of the population brought about by urbanization, will create
greater prospects for almost every industry. Market will become more
efficient and industries will grow even faster than before. Domestic
demand for goods and services will grow, creating better opportunities
for production and investment.

								
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