Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
Although a challenging marketplace, China’s vast size, growing wealth, changing demographics, and economic transformation continues to create opportunities for well-prepared U.S. firms. China’s gross domestic product (GDP), and its market is larger than that of Japan, Germany, the United Kingdom, and India – combined.
China’s status as a global manufacturing powerhouse is just one driver of this growth. Over the past two decades, China’s middle class has experienced one of the fastest growth rates in the world. The shift from the traditional low-wage, labor-intensive manufacturing economy towards more technology-intensive high value-added production has fostered a burgeoning middle class in China that has generated consumer demand for a broad range of products. Indeed, Chinese consumers play an increasingly significant global role, now the world’s largest market for many products from vehicles to air conditioners to video games. As a result of this growth, retail sales in China are expected to outpace those in the United States within the next couple of years. American firms note that this growing consumption power means the Chinese market is increasingly influential in global consumer trends, making success in China ever more critical for their ability to compete globally.
Many of the headwinds that the Chinese economy faces, including an aging population and shrinking labor force, falling return on capital, and the need to provide services to a population with greater expectations, could open opportunities for American firms. Despite tensions in the U.S.-China bilateral relationship, American products continue to be viewed favorably by Chinese consumers.
In this report, we will explore several top prospect sectors, including:
- Cosmetics and Toiletries
- Design and Construction Services
- Environmental Technology