China’s Impact in Global Economy and Consumers in 2017
Euromonitor recently published the white paper Global Economies and Consumers in 2017. There are 8 points in the white paper closely related to China. We hope this can be helpful to your business development.
China Pioneer Increase of Consumption
Despite a slowing economy, Chinese consumers will continue to see one of the largest increases in spending, and expenditure in emerging and developing economies overall will grow by more than twice that of developed markets. Developing Asia markets, like China, India and Southeast Asia, are estimated to be the main driving forces. However, because of the big difference between economy recovery and consistent low price of primary commodities, the prediction of other regions is unbalanced.
US President Trump’s Trade Policy to China
In his election campaign, President Donald Trump expressed his intention to impose a 45% import duty on goods from Mexico and China, renegotiate NAFTA and pull out of the Trans-Pacific Partnership (TPP), as well as the flailing US-EU Transatlantic Trade and Investment Partnership (TTIP). Trump’s victory augments uncertainty in terms of US foreign policy stances, such as trade wars with China, a wall with Mexico, involvement in multinational agreements and attitudes towards some of the EU policies.
China Export Keep Increasing
China export occupy 18% of GDP. Top trends in Industrial Global production output is to accelerate in 2017, reaching 5% annual growth. Asia Pacific remains at the forefront of top growth areas, expected to hit 40% of the global production output in 2017. Production output in China, India and Philippines is expected to grow by 10%. Category-wise, pharmaceuticals and primary commodities, such as metals, fertilisers and oil, will record the highest global growth.
China Megacities Population Increase Rank High Globally
Shanghai population grow 0.4 million and rank No.2 of global megacity population increase in 2016-2017. The No.1 is Cairo from Egypt. Beijing rank No.5 with about 0.38 million population growth, while Guangzhou is also on the list.
Increasing Pressure of Over-indebted Chinese Corporate Sector
High credit growth is anticipated to persist in China during 2017, despite the recently introduced government’s measures to fight excessive debt levels. China’s private non-financial sector debt to GDP was estimated at over 200% in mid-2016, rising nearly two times faster than the country’s GDP. Bad loans are a particular cause for concern, adding to a high probability of a banking crisis over the next three years.
China May Propel Climate Initiatives
US president Trump planned to pull out of the Paris Agreement. This would create a sizeable setback, particularly given that the US has so far disbursed US$500 million of the total US$3 billion promised to support poorer countries in implementing environmentally friendly infrastructure. China, however, seems to be stepping in and may be able to fill the funding gap.
China Apparel Online Sales Exceed US
Of all product-based digital purchases, the apparel and footwear category will contribute most in terms of absolute value sales, with an estimated US$31.4 billion expected to be added in 2017 by Euromonitor. While online sales represent only a small percentage of total sales in many Asian nations, about one-fifth of apparel and footwear sales in China and South Korea are now made in digital channels. In particular, China has grown rapidly and sales are now higher than the US.
China Education Industry Prosper
By the year 2017, the number of household heads with secondary education will be well above 1.0 billion worldwide, the highest total in human history. Better-educated heads of households are driving rising consumption in some of the world’s most dynamic emerging markets. In countries such as China, Vietnam and Nigeria, a new middle class is able to afford education, a market that is booming on the back of surging demand.
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