China country report

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China has a highly diversified economy, dominated by the manufacturing and agricultural sectors.  
The agricultural sector employs almost 40% of the active population and contributes up to about 10% to the GDP, although only 15% of the Chinese soil (about 1.2 M km) is arable.
China is the most populated country in the world and one of the largest producers and consumers of agricultural produce.
China is the leading global producer of cereals, rice, cotton, potatoes and tea.
In terms of livestock, it also dominates sheep and pork livestock farming and the world's production of fish products.  
The mining sector occupies an important place in the Chinese economy, since the country's subsoil is rich in energetic resources.

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China country report

  1. 1. Main Industry SectorsEconomic OverviewForeign Direct Investment [FDI]FDI Government MeasuresCountry Strong PointsCountry Weak PointsForeign Trade Overview
  2. 2. China has a highly diversified economy, dominated by the manufacturing and agriculturalsectors. The agricultural sector employs almost 40% of the active population and contributes upto about 10% to the GDP, although only 15% of the Chinese soil (about 1.2 M km) is arable. China is the most populated country in the world and one of the largest producers andconsumers of agricultural produce. China is the leading global producer of cereals, rice, cotton, potatoes and tea. In terms of livestock, it also dominates sheep and pork livestock farming and the worldsproduction of fish products. The mining sector occupies an important place in the Chinese economy, since thecountrys subsoil is rich in energetic resources.
  3. 3. The industry and the construction sectors contribute approximately half of Chinas GDP. China has become one of the preferred destinations for the relocation of globalmanufacturing units because of a cheap labour market, even though the cost of labour hasbeen increasing. Chinas economic development has coincided primarily with the development of acompetitive and outward-oriented manufacturing sector. More than half of the Chinese exports are made by companies with foreign capital. Their share in the sectors added-value varies according to the sector: more than 60% forelectronics and less than 20% for the majority of producer goods. China has significant coal reserves (the countrys primary energy source), which accountfor two-thirds of the total primary energy consumption.
  4. 4. It is the world leader in the production of certain ores (phosphate and titanium) and alsohas significant petrol and natural gas reserves. It is the worlds fifth biggest oil producer with 3.8 million barrels a year. The Government sector still contributes approximately 40% to the GDP. The services sector has not progressed, encumbered by public monopolies and restrictiveregulations. The tertiary sectors share has remained at nearly a third of the GDP in the last 15 years.
  5. 5. The global recession interrupted Chinas dynamic of continuous growth. Chinese economy however showed itself very resilient to the crisis and its economicrecovery surprised the observers by both its rapidity and its vigour. After the euphoria of the recovery, the GDP growth slowed down during the first twoquarters of 2010, especially as an effect of the austerity measures adopted by thegovernment in the field of bank lending, real estate and currency exchange. Since then, there has nonetheless been a resumption of more dynamic growth whichshould continue in 2011. Economic growth is estimated at 10.5% for year 2010.
  6. 6. Chinese economy is driven by investment and domestic consumption, which is itself boosted by the increase insalaries and the new housing policy. The government has announced new measures to fight inflation and to stabilize prices of basic agriculturalcommodities. Among Beijings priorities are also: infrastructure, industry modernization, opening the country to newtechnologies, healthcare, education and support for the countryside. A large gap remains between the living standard of the cities and the countryside, between urban zones on theChinese coast and the interior and western parts of the country, as well as between the urban middle classes andthose who have not been able to profit from the growth. These inequalities are becoming increasingly worrisome for both the Chinese authorities and the investors.Although poverty has largely decreased in China,almost 10% of the population, i.e. more than 120 million people, continue tolive on less than 1 USD a day.
  7. 7. The absorption of FDI flow is part of Chinas opening up to the outside world. After reaching a peak in 2008 and subsequently falling under the effects of the global economic crisis, FDIflows have recovered and the trend should continue in the future. China is an unexploited market and a potential for considerable growth due to several reasons: Its the biggest internal market in the world with 1.3 billion potential customers; Its a rapidly growing market (minimum 8% growth per year); and the labor costs are low even if thissituation is changing in certain areas; With the development of the Western provinces, China offers new opportunities, particularly in the Sichuanprovince. Nevertheless, certain factors can hinder investments, such as Chinas lack of transparence,legal uncertainty, low level of protection of intellectual property rights, corruption orprotectionist measures which privilege local businesses.
  8. 8. In the foreign investment guide published by the State Commission for Development andReform in November 2007, the Chinese government made it known that investments insectors or Chinese companies that already have "a relatively strong production capacity withadvanced technologies will not be encouraged, while investments in high technology,production of equipment and new materials, and in the services sectors, as well as in therecycling economy, clean production, use of renewable energies and environmentalprotection, will be welcomed as they are sectors in which China needs foreign companies.
  9. 9. China has a rapidly expanding market, which was not overly affected by the 2008-2009financial crisis. With a strong potential, a wealth of employees and potential partners eager to learn andevolve, the country is a base for low cost production.
  10. 10. A changing legal context, administrative complexity, the difficulty for foreigners to learn the way ofconducting business, both culturally and in practice, a poor middle management level and a very highstaff turnover are factors which are often crippling in market acquisition.
  11. 11. Trade represents almost a half of the Chinese GDP. After having achieved a record trade surplus in 2006, China has become the worldsprimary exporter and ranks second among worlds largest importers. Chinese exports were increasing until a decrease due to the international financial crisis.For the first time in six years, China experienced a large trade deficit in March 2010, importssoaring due to a strong domestic demand, while exports were lagging behind due to theslowness of the global economic recovery. This phenomenon proved to be only temporary, the country again achieving a surplus thefollowing month. This trend should continue in mid-term. Chinas main trade partners are the countries of South East Asia, the United States and theEuropean Union.
  12. 12. Visit us to download for related reportsMarket Opportunities of products and Services in ChinaExport and investment sector opportunities in ChinaOverview of Trade Regulations, Customs and Standards in ChinaChina Investment guide for beginnersBusiness and Project Financing in ChinaBusiness Travel Advisory in China
  13. 13. Country List China  Australia Mexico  Germany United States  France India  Spain Canada  South Korea Russia  Vietnam Hong Kong  Saudi Arabia Colombia  Poland Brazil  South Africa Turkey  Nigeria Indonesia  Argentina Egypt  UAE Singapore  Netherland United Kingdom  Sweden Italy  Thailand Japan  Israel and more…. Buy 2 reports get 1 report FREE
  14. 14. International Market Research Report on 300+ topics over 100 countries Instant online Delivery Need additional reports ? Market Share Distribution and business practices Market Size Statistical data Market Trends End user analysis Market access Import and Export strategies information Market Analysis Competitions Domestic production Best sales prospects Tariffs and Trade shows and regulations contact points
  15. 15. Thanking for downloading For more information visit uswww.worldresearchreport.com Or Email usworldresearchreport@gmail.com

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