China || A Thriving Global Market Place
The Home to New Opportunities

Chinese Economy | A New Phase

China GDP - First Half 2019 — The Changing Landscape of Chinese Economy: An Opportunity for Business and Investment.

China | A Thriving Global Market

While this economic slow down can certainly be attributed to Trade Wars with the US, it also reflects the Chinese economy switching into a new phase that was planned and stated as early as 2013, and further reiterated during the 19th National Congress of the Communist Party of China (Shíjiǔ Dà) held in 2017.

Chinese economy now is in transition stage. Beijing had long expected the economy to slow down as a result of this ‘phase-shift’. Thanks to the Trade Wars, all seems to be going as planned — with least resistance from the Chinese provincial and local governments!

Trump’s trade wars are surely helping to accelerate the process — Everyone seems to be onboard!

The fact is that the break-neck growth period of last three decades had also brought with it pollution and destruction of environment. Anyhow, such a growth in economy at that enormous cost was not sustainable.

Now, with the economy having reached a mature state, it is ready to be switched into the new phase—service oriented high-tech economy enhance by internal consumption.

China’s plans now seems to be focused on a sustainable development that emphasize raising living standards of masses, improving social services, building more infrastructure and implementing supply-side reforms.

This new phase of economy in China is an opportunity for the businesses—especially international businesses. Chins is implementing the final phase of Opening Up its economy to foreign investors.

With an investment perspective, the major factors that should be considered are:

Further opening up of the financial sector.
Tax breaks and incentives for both the consumers and business.
More Free Trade zones all across the country.
Specialized foreign Business parks and zones with governmental help and support.
Strengthening up the Yuan in coming years.

We expect the demand for foreign goods and products will increase as consumer will have more money to spend. All these changes will be a boost for the ‘right’ businesses who may move in to take advantage of these new ’New Normals’ in the Chinese economy.

China is emerging as an interesting place for business and investment that may bring in unprecedented opportunities for growth and investment in a booming Chinese economy.

Its fast growing high-tech and fin-tech sectors, a vast consumer market, and interconnected-interlinked Belt & Road economies are opening up prospects for ‘new comers’ and start-ups alike. Chins’s Real Economy, coupled with it’s consumers growing purchasing power, is certainly something to consider when planning for future prospects for business and investment.

Shanghai || The Gateway Leading into a Booming & Thriving Chinese Market.

Chinese Economy By Components

Chinese Economy grew 6.3% over the first half of 2019 — The slowest growth rate recorded in more than a decade. The Nominal GDP (also see the GDP—Computing Methodologies) for the 6 month period was 45 trillion Yuan.

The Following were the major highlights of the economy for the period:

All Data is in Yuan—Nominal Value

Value added in Primary Industry: 2.32 Trillion — up 3%
Value added in Secondary Industry: 18 Trillion — up 5.8%
Value added in Tertiary Industry: 24.77 Trillion — up 7%
Contribution of Financial Consumption to GDP growth: 60.1%
CPI was up 2.2%
PPI was up 0.3%
Industrial Output up 6%
Output of State-Owned Enterprises up 5%
Output of Joint-Stock Companies up 7.3%
Output of Overseas-Invested Enterprises up 1.4%
Output of High Tech manufacturing was up 9%
Per Capita Disposable Income was 15,294 — up 6.5%
Retail Sale of Consumer Goods was 19.52 Trillion — up 8.4%
Online Retail Sales was 4.82 Trillion — 17.8%
Fixed-asset Investment was 29.91 Trillion — up 5.8%
Real Estate Investment was 6.16 Trillion — up 10.9%
94 Fixed-asset Investment projects approved: 471.5 billion
Foreign Direct Investment was 478.33 Billion — up 7.2%
New Foreign Funded Enterprise: 20,131
FDI in High-tech sector was up 44.3%
FDI in Free Trade Zones was up 20.1%
Foreign Trade was 14.67 Trillion — up 3.9%
[Export was 7.95 Trillion | Import was 6.72 Trillion]
Summer grain output was 141.74 Million tones — up 2.1%
Electric Consumption was up 5%

Presented below is the data showing the performance of Chinese economy. Presented in an infographic format, it presents the picture of a changing landscape of the Chinese economy.

Chinese Economy | 2019-First Half GDP
Presented in a Pictograph

[Courtesy: China National Bureau of Statistics—Ministry of Commerce]

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