largest consumer market the world has ever known
Restructuring China’s economy and the impact on exporting and tourism
To maintain its growth and to ensure prosperity and social stability China’s government has made a strategic decision to restructure China’s economy rapidly moving from a manufacturing to a consumer-based economy. In this new economy, delivering consumer products and services and leisure and tourism are critical.
China’s economy is growing at an unprecedented rate; when you multiply this rate by China’s 1.3 billion people you have tremendous growth and change.
Fueled by a growing middle class with an appetite for consumer products, and now, the money to pay for them, dynamic changes are taking place in the import/export industry. For example, China became the top importer of U.S. agriculture goods in 2010, surpassing all other nations for the first time in history.
China's focus - Domestic Consumption
In short, instead of an economy based upon manufacturing and exporting products to other countries, China’s focus has now changed to internal domestic consumption. Across the board, China's government is ramping up the demand for its citizens to buy and use consumer products. At the same time emphasizing stability and improving its citizen’s quality of life are cornerstones of China’s long-term plan. On the trade front, China has pledged to improve the balance of trade, which means importing more and exporting less.
Exports to China means more jobs
An increase in exports to China means more job opportunities for American workers, farmers, ranchers and service providers, as well as sustained economic growth. China’s potential is so great that capturing an additional one percent of the China import market translates to $12.6 billion in additional goods exports and more than 74,000 U.S. jobs.
Much of America’s recent export resurgence can be attributed to China – the nation’s fastest growing major export destination and third largest by volume. In 2010, the U.S. exported $93 billion worth of China-bound goods, more than a 30 percent increase over the previous year and outpacing worldwide export growth by a double-digit margin.
Those exports to China translate into supporting about 500,000 jobs in the U.S. in 2010.
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People - Demand - Growth - Opportunity
The Chinese market boasts a growing middle class, which McKinsey & Co. expects to reach 400 million by 2020, and ever widening consumer base offers a compelling destination for U.S. small-and medium-sized enterprises (SMEs) to boost exports and expand their business. Though many small businesses are reluctant to seek new opportunities overseas, a growing number of U.S. SMEs are doing business in China – and are finding success.