Every October, China celebrates its anniversary. This year’s National Day, which took place on October 1st, is the 70th anniversary of the founding of the People’s Republic of China (PRC). The birthday of PRC has been widely celebrated throughout the country.
In 1978, China opened its door for business, heralding a period of high-speed growth that would profoundly transform the global economy. China has since then become a key driver of the world economy with annual GDP growth at 9.4 percent on average. From 2000 to 2017, China contributed 35 percent of the total global manufacturing output, making the country the “factory of the world”.
China is now the world’s second-largest consumer market, with its retail sales of consumer goods at around 38 trillion yuan (about $5.4 trillion) in 2018, up from 27.7 billion yuan in 1952, Minister of Commerce Zhong Shan told a press conference on Sept 29.
With its 900-million strong labor force and a middle-income population of 400 million, China is the biggest market in the world with ample investment opportunities and consumption potential. In the next 15 years, China is expected to import goods and services worth RMB three trillion and one trillion respectively. Last year saw China’s foreign direct investment respond to the global downward trend amid trade frictions and rising protectionism. The country’s first Foreign Investment Law was introduced in March to ensure that the country’s business environment continues to improve.
Nowadays, China advocates multilateralism and plays an active role in building multilateral platforms for international cooperation and dialogue. These platforms initiated by China include the Belt and Road Forum for International Cooperation, China International Import Expo, Forum on China-Africa Cooperation, China-Arab States Cooperation Forum, China-CELAC Forum, Boao Forum for Asia, China-ASEAN Expo, Conference on Dialogue of Asian Civilizations, World Internet Conference and more.
Chinese government plays a very important role during this process. The leadership of the Chinese government is heavily involved with its business environment and the development of companies. The Chinese government takes its freedom to make market adjustments or improvements when necessary through policy and market measures. As a result, working closely with the government or working under the government’s leadership is essential when doing business in China.
Especially in sectors like international trade and sustainability, there are ample local government resources available to support foreign organizations willing to invest in China. Managing cross-cultural government relations can present its challenges, but with the right local advisors companies in China can take advantage of the support from the government while enjoying the free development of the market.
Dr2 Consultants Shanghai can help you stay up to date to relevant policy and market developments, as well as help you cross-cultural bridges and connect you to the right contacts to help your business in China thrive.
If you want more details, please do not hesitate to contact us!