China’s economic restructuring, having nurtured a surge of manufacturing and robust consumption, won overseas investors’ approval by virtue of its bright prospects and initiative in international cooperation, the Economic Daily reported Nov 9.
According to Hong Kong and Shang Hai Banking Corporation, China’s manufacturing transformation brought a substantial boom in high-tech manufacturing products, greatly lifted its global market shares in electronic products, engineering facilities, household appliances and locomotives.
A continuing increase in export to emerging markets also facilitated a rise in citizens’ disposable incomes and expansion of middle-class consumer groups in those countries, which in turn generated a virtuous circle, increasing external demands for China’s high-end manufacturing goods.
As a result, China’s exports to these countries rose from 16.7 percent in 2012 to 20.8 percent in 2016. With the Belt and Road Initiative being advanced, China’s ties with newly developing markets is bound to be further consolidated, said HSBC.
China’s thriving consumption has been driving global economic growth, with its share in the final consumer market quadrupling from 2005 to 2016. Additionally, there will be more incentives for its consumption growth, as China’s economy will retain a 6-percent growth rate by 2020 on the premise of a tight monetary policy and persistent overcapacity cut and cultivating abundant investments and employment, said the German Allianz Group.
Also, the income rise for Chinese citizens will be sustained for years to come, by dint of a fairly low household debt ratio, steadily booming urban employment and considerable profitability for enterprises. The “Made in China 2025” project will usher in a great number of mid-to-high technological jobs and higher salaries, further underpinning consumption.
It’s worth noting the benefits of China’s increasing demands for high-end commodities also extend to the manufacturing sectors in the US, Western Europe, and advanced Asian economies. Meanwhile, Russia, Central and Eastern Asia and Oceania enormously profit from China’s consumer demands for raw materials in the process of constructing the Belt and Road Initiative, Allianz said.