Home » Business » Biz Special
Experts see more dynamic growth coming
Print Edition
US experts are confident that the Chinese economy will see a slower yet more dynamic growth, with a more optimized structure and global outreach.
China has set the average annual growth rate for the next five years above 6.5 percent.
“Whatever adjustments are being made ... Chinese people continue to make more money to make better jobs. They are spending on real estate, on goods, on services. It is a real pillar of the coming economy in the next five years,” said Michael Zakkour, a corporate and business strategist.
China’s economy has grown in double digits for over two decades, but as the economy get larger and multi-faceted, the economy enters an adjustment period, where shrinkage in growth number means larger aggregated value.
“China’s economy is today made up of multiple subeconomies, each more than a trillion dollars in size, some are booming, some declining,” said Gordon Orr, emeritus director for McKinsey & Co.
Experts believe that when people debate the percentage change, they lose sight of China’s economic scale.
As the world’s second-largest economy seeks healthier growth, a significant portion of the economy has to be based on domestic consumption, added Zakkour, author of “China’s Super Consumers” and principal of Tompkins International.
Consumption contributed 66.4 percent to China’s GDP growth in 2015, up 15.4 percentage points from 2014.
A more consumption-driven Chinese economy means opportunities in service sectors, according to Virginia Kamsky, chairman and CEO of Kamsky Associates Inc.
China’s economy experiences different phases of its development cycle. It is now shifting its focus to consumption and service industries from labor-intensive industries and manufacturing via reforms.
People will realize that in many parts of the economy, “a smaller Chinese manufacturing sector is actually a stronger global competitor than ever before,” Orr wrote in an article.
Meanwhile, China’s global competitiveness will be not just in manufacturing, but in major sectors in innovation, said Gail Fosler, president of the Gail Fosler Group LLC, a strategic advisory service for global business leaders and policymakers.
In addition to a more optimized economic structure, China has also been engaging globally with outward reach, which will to a large extent bring momentum to the economy.
Zakkour pointed out a significant part of the growth will be from outbound investment, with an increased focus on building Chinese multinational companies and global brands.
“One big thing I see coming up in the next five years is China going global,” he said.
China’s conglomerate Dalian Wanda Group Co has agreed in January to acquire production and finance company Legendary Entertainment for 3.5 billion US dollars in cash.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
