By: Chelsea Toczauer
Investment and business in China can be intimidating given the variety of challenges businesses face entering the Chinese domestic market as foreigners.
China’s booming economy has traditionally seen huge domestic investment projects and tight control of foreign enterprise in China.
However, China’s slowdown in real GDP growth in recent years has raised concerns in the Chinese government on the need to restructure the economy to ensure continued accelerated growth. Economic policies now focus on transitioning the economy from high levels of domestic investment to increased domestic consumer spending.
There has in fact been a dramatic increase in China’s domestic consumer spending relative to investment.
Furthermore, this shift has opened a window of opportunity for foreign business and investment in China. Visible on the streets of Beijing, from Nike shoes to foreign-brand designer handbags, an emerging trend in China today becomes apparent.
Paul J. Davies pinpoints this trend at the Financial Times online in his article on current consumer spending in China favoring foreign over domestic brands:
Chinese consumers want foreign goods. Whether sports shoes or cars, televisions or mobile phones, cosmetics or nappies, surveys show that foreign brands predominate.
This raises a prospect to consider given the current economic climate, as now may be the ideal time to move business to China.