China has always been found to be one of the top countries across the globe. Home to 1.35 billion people, China is the most populous nation not only in Asia but also in the world. It has the fastest economic growth, the second largest economy in the world, and even managed to overtake Japan in the year 2011. After the turbulent times for two years, China’s economic rating is rising again and more and more investors now are concerned of learning and gaining information about how to live and how to invest in China.
Economists view that the economy of China will continue to increase between 7 per capita and 9 per capita for the midterm. In the previous year, on the contrary, the UK economy did not experience any growth.
A decade ago, China’s manufacturing was its major contribution to the global economy as it used to rely on export for its growth. However with the migration of its rural citizens to cities and towns, its increased consumerism and increasing middle class, the economy of the country makes continued progress owing to its own citizens’ spending power.
In terms of consumption per capita, China today outperforms other emerging economies by a great margin. What’s more is that the Chinese consumer is still able to support many markets in the international arena. It has contributed a great deal to the revival of the luxury goods market in Europe, the mining sector of Australia and the worldwide car manufacturers in which over one million cars were brought into the country last year, a huge increase compared with the 42, 000 imported cars in 2000. Two thirds of the cars were in the category of luxury motoring brands.
Very different from the Western nations, the national purse of China is in the black, having huge foreign exchange reserves. Not to mention China’s key position in terms of gold buying, with its jewelry and investment demand of up to 255.2 tons in the previous year, an increase by 10 per capita on last year’s levels.
For the past two years the stock market in China was difficult but today the market is picking up again, experiencing a steady profit since June of the previous year. Aside from its rising stock market, its new leadership by Xi Jinping is predicted to result in having a parliament that would significantly be more radical compared to the last. Not only that but also the country’s middle classes learn more regarding the truth about their government online. In addition to this, a considerable number of business executives have degrees in the West which means having a generation with less tolerance towards repression and corruption. This situation will eventually create an impact on the prospects of investments for the country. The changes made to China’s labor laws in the year 2008 have brought about a significant pay increase to the Chinese workers annually. Although some factories owned by the Americans have been repatriated because of the escalating costs, it has only brought moderate impact taking into consideration the country’s trade figures revealing its surging exports and decreasing imports. In spite of its plans of moving towards a more locally focused economy, China is still seen today with more exports to the United States of America (USA) compared to the last 4 years.
The funds of the country have been one of those that performed the best in the previous 6 months after the election as well as improved the confidence of the investors. The wealth of China is growing and its internal consumption is increasing where most of its imports go. This shows China is becoming a country that is considered to be self-sufficient. The value that is contributed to its export partners is not the question now but it is the value that is contributed to its domestic consumption of which every smart investor understands.
Although the country’s export growth dropped to 2%, there is still an increase in the growth curve. What the drop actually reveals is that there is a diversion of more of the country’s products to native Chinese markets to cater to domestic consumption as it rises. In terms of machinery and electronics, there is a drop in the rate of manufacturing to cater for exports. However, there is still a rise in the actual production and the Chinese consumers are taking part in it.