While scrutinizing the factors behind China’s grip over the world economy, the investment opportunities in this country cannot be compared to anywhere else as they are driven by a consistent growth rate of 8-11%, and if you are a believer of economic forecasts, in times to come this phenomenon is going to be intensified even more.
The official data from Chinese authorities is even more startling which reveals that the 11th five-year plan of China keys on maintaining the growth rate at a minimum 8% for five years down the line. Amazingly the expectation is far higher than the minuscule 2% growth of United States.
Current statistics clearly state that the Chinese economy has suffused $600 billion from investors across the world. In every vertical, say real estate, manufacturing and even health care, the gigantic presence of China has constantly been felt by other competent economies in the emerging space and even legends like India and Japan in their neighborhood. With the expanded foray of modernization and progressive business culture, China has attracted a wider business portfolio from the global investors in the mode of both active and passive forms of business investments. If we visualize the balance sheet of Chinese growth in recent three months of 2010, it reveals that a rapid pace of around 10% growth fuelled the fire to maximum output in several domains viz. industrial production, retail sales and manufacturing.
China has the leading consumer base for metals like steel, copper and aluminum and if we trust on renowned data sources, China consumes 50% steel from the global production. Among the economist of global repute the rapid growth of China is a solid subject of profound analysis and also the mammoth size of Chinese economy is a subject of stringent and tough debate nowadays.
When it’s measured in the US Dollar, China’s GDP in 2008 was $4.2 trillion and the per capita GDP was somewhere around $3,190 that made the China third largest economy after USA and Japan. But now China has surpassed Japan and its GDP was seen at $5.7 trillion, whereas Japan is close behind at $5.4 trillion. Beyond all this, the saga of Foreign Direct Investment (FDI) in the Chinese economy is even more shinning. The major part of the FDI is the end result of China’s trade and investment reforms and incentives offered to the trade partners across the globe. In 2007, the country had around 3 lack foreign-invested companies that employed more than 40 million people and resulted an accumulated 31.5% of gross industrial output value for China.
If business experts are to be believed, India is the only country that can overpower the Chinese monopoly in the global business. India falls very closer to the China in the emergence of liberalization, global economic policies and overseas trade forms to attract FDI. Nicholas J. Cull, a British-born historian who is also a well known theorist of public diplomacy endorses the claim of Indian power play in global economy and says, “Diversity and open ended business attitude is the major turn-on for Indian business reach among the global economies.”
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