2. With the global economy becoming increasingly
more interconnected through the symbiotic use of
technology and travel, the art of conducting
business has also changed drastically. Although it’s
no surprise that China is now a major player in the
international market from investors financial
interest in the film industry to most of the
manufacturing of goods taking place in the Chinese
market, the question of how much economic growth
is still to be determined.
3. Furthermore, while the Chinese economy is
expected to grow around 7% in the upcoming
year from hard statistics provided by China’
National Bureau of Statistics, there is a sharp
decline as to how the market developed in
recent years. With a recent history of mass
commercial expansion in major cities across
the country along with the Chinese
government’s policies declaring itself as a
solid, foundational goods based economy, this
may seem as a surprise to many.
4. Recently speaking, there is no doubt that China
has shown declining growth in terms of buying
power with their currency losing traction to the
American dollar. With the years of the intense
real-estate boom of construction expanding the
Chinese market, the world's second-largest
economy is slowing down a bit in terms of fast-
paced, exponential financial growth in the
private sector.
5. A new strategy has emerged with the
Chinese government implementing
various macro and micro-level policies
that will gear consumers and investors
alike toward the services portion of the
private sector that will emphasize
consumption rather than production.
7. Some economists doubt the validity of the
finance-based statistics given by Chinese
government believing that they may be skewed
in order to further entice both domestic and
foreign investors to trust the stability of the
global power’s economy. Julian Evans-
Pritchard of Capital Economics has come to the
evidentiary conclusion that China’s economy
will be closer to around 4.5% instead of 7%,
showing the signs of a more established,
developed nation.
8. With this notion in mind, a major concern is whether
or not the facts and statistics generated by Chinese
government bodies can be trusted with such a huge
numerical discrepancy between them and the
economic data provided by privately endorsed
entities. The question of data-driven partiality is a
serious enough for many domestic investors in
China to move their finances to other developed
nations such as the U.S. or Canada.
10. "China's ability to continue to post such rapid and
relatively stable growth, even as it has increasingly
become a source of volatility in global equity and
commodity markets, will undoubtedly attract a great
deal of skepticism,” Evans-Pritchard stated.
As China’s economy gradually changes to one focused
more on services than goods, it’s not certain what we
can expect from this market in terms of financial
growth.