Foreign Investment In China: The ‘World’s Factory’

Over the past few decades, China has grown at a phenomenal rate to become the second richest country in the world and the global hub for manufacturing and export. The Chinese market is ambitious and eager to compete with the rest of the world. With that aim, the Chinese government-backed ‘Made in China 2025’ initiative can only boost an already booming economy. Financial markets are notoriously sensitive, and with the political unrest in the EU and potential nervousness regarding the US presidential election possibly causing fluctuations in those markets, now is a great time to invest in China. Can you make China’s initiative work for you?

‘The world’s factory’

Financial experts agree that China is increasing its impact on the world economy. Previously thought of as a difficult market to access, since opening up to foreign direct investment (FDI) in 1979, the Chinese economy has grown faster than any other, even outdoing India. Ranked second in Investopedia’s list of the world’s top economies, China is considered the world’s largest exporter, often described as ‘the world’s factory’ for the sheer quantity of goods it produces and exports. At the core of ‘Made in China 2025’ is an ambitious plan to take China’s manufacturing to yet another level. 

China’s population is the largest in the world. This makes it a great place to invest. Not only are there many potential customers but there are also a lot of potential employees. In fact, many experts consider China’s large workforce central to its rapid growth. Economic stability and the Chinese government’s forward planning is another attractive factor in China’s favour: ‘Made in China 2025’ began in 2015, so it represents a 10-year period of government investment and growth.

Manufacture of medical devices is one sector that shows rapid growth. Chinese medical device registration is regulated by National Medical Products Administration (NMPA); all medical devices used in China, whether manufactured there or imported, are subject to NMPA’s regulations. How is this relevant to investing? Estimates vary, but economists think that in 2019, China’s manufacture of medical devices was massive, with the industry employing hundreds of thousands of people and an astonishing number of businesses operating in the sector. This upward trend is expected to continue in 2020 and beyond. 

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Disclaimer: The posts I write and share is purely for informational and entertainment purposes and I am not, nor claim to be a financial expert of any kind. Please make your own decisions on ...

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