Published On: Mon, Dec 11th, 2017

China… A country “with strong prospects for the world leadership race” in innovation field

China... A country "with strong prospects for the world leadership race" in innovation field

In the race between the USA and the rest of the world to win the world leader title in technology and innovation, China has emerged as the main threat for the USA for a long while now. In fact, experts in the field comment it is inevitable for the US to lose its current title to China and not before long.

When we take a close look into the issue we can see that China has been undergoing a an incredible transformation for decades which has obviously been the basis for the almost magical growth performance it has achieved in recent decade.

It seems very clear that this transformation will continue to create opportunities for business sectors, making available a broad and dynamic market.

It is essential to keep in mind that although the growth rate of the country’s GDP has been moderate in recent years, it is stated that most of the 660 cities in China are still growing rapidly with a USS 12,000 GDP per capita. According to experts on the other hand, China’s future growth is expected to be led by consumption and trade in services thus causing a global migration of wealth and purchasing power from the West to Asia.

The interesting part is on top of above issue one needs to consider some other complementary growth drivers related to growth and power race, as well.  China is one of the largest investors in research and development on a national scale and has also developed the world’s largest e-commerce market. This shows that Chine has strongly focused on achieving an innovation-powered growth – which it is about to accomplish actually. The rapid adoption of electronic payment process for instance should be considered as a global shift to a financial system in the digital environment.

As for the Belt and Road Initiative, aimed at improving infrastructure and trade links between China and Europe, this move will certainly create new growth opportunities and contribute to improving the infrastructure and trade links between China and Europe. Thus it should be regarded as a “a completely new strategy for GDP production” that paves the way for the export of high-value brands and services like railway technology.

When we put all above info together we can easily see that CHINA is coming strong and there are already  great business opportunities in this country with a giant population as well. The only important point for investors interested in this huge market will a thorough study of everything concerning consumption habits and alike before taking the final step to invest.

To recap it will not be long before CHINA is the new leader of the world in technology, innovation as well as consumption which we believe would be a nightmare for some parties.

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