In recent years, China has become the world’s second largest economy with a GDP at $10.35 trillion in 2014, has drawn growing amounts of foreign direct investment (FDI) and has turned into a major investor abroad itself. As China’s not an emerging economy anymore, China has emerged as a large economy with the world’s largest population that has yet to switch from champion export economy to robust internal consumption economy.
In front of what’s been interpreted as growing difficulties by the West, the slowdown of China’s economic growth has been seen (and marketed) by the Chinese government as a necessary step towards reaching the “new normal”. Mixing lower economic growth with stronger economic foundations, Beijing said it has based its economic policy on three main principles that are “improved redistribution of power, appropriate government involvement and optimization of service.”
Information consultancy Cyceon along with the correspondents of its news service www.cyceon.com has conducted a 1-year worldwide monitoring of data related to how China’s economic and political environment is being perceived around the world.
Summing up, Cyceon reached 8 conclusions:
- China has become a major world power, entering a new era for its economy.
- Economists forecast strong Chinese economic growth but not as strong as before.
- China has become a major destination for investment, not the world’s largest yet.
- China could be the next Japan for demographics, impacting long-term growth expectations.
- China has a large potential to grow as a share of the world’s total population.
- Committed to opening up, the Chinese government isn’t business friendly enough.
- China remains an investment opportunity overall, with conditions.
- Domestic and foreign policies will likely decide the fate of the Chinese economy.
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