china - GSClub

China

China is the most populous country in the world, with roughly 1.3 billion people and counting. The country has numerous metropolises, which contribute significantly to economic prosperity. Overall, it is the world’s second largest economy (after the United States) and leads the world in global imports and exports. Consumer goods made in China represent a large share of the country’s exports.

In addition, China is the world’s fastest-growing major economies. The capital of Beijing and the port cities of Shanghai and Guangzhou form the strongest economic transformations in China. Globally, China is one of the leading producers and consumers in agricultural goods. However, despite the large landmass the country has limited fertile land.

Currently, China places an emphasis on urbanization. This combined with economic growth has led to increased consumer desire for certain goods, such as automobiles. Additionally, the mining and energy sector in China is growing parallel to the country’s energy demand. Several top mining companies in the world are based in China. The vast landmass contains large reserves with many energy and mineral resources.

Main Industries

Automotive

As the world’s largest automotive market, China has experienced double digit growth in the last decade. In 2016 alone, car sales had surged at the fastest rate in the past three years, with 28.03 million cars being sold.

Mechanical engineering

China has become a leader in the industry with its fast and sustainable growth rates. The country has managed to successfully fill the demand for low-cost machinery in domestic and export markets.

Electronics

As the world’s largest manufacturing center for electronic products, China is seeing its fastest growth in this industry. Revenue for the Electronic Component Manufacturing industry in China has seen an average annual increase of 5.8% in the past 5 years.

Future Prospects

In the future, China will become the world’s largest investment economy, due to the following factors: large market potentials, rich labor resources, low labor cost, and stable government. These factors will continue the stable and consistent growth of foreign capital into China. Eventually, this will make the country grow at an even greater accelerated rate.

In 2020, if price index remains the same, the country’s GDP will rise to 38 trillion. More importantly, are the abundant human resources in china. The labor force in China is prospected to grow as the country continues urbanizing, changing from a rural and agricultural society to an urban and industrialized society. This is a substantial driving force in the Chinese economy.

By shifting to an urban infrastructure the country will see an increase in urban population, causing higher levels of consumer consumption. Accordingly, the Chinese government intends to support private consumption, increased spending, and will build an accessible social system. As a result, Chinese companies will also see an increase in income.

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