The stock markets in Europe, Asia and the United States quickly followed suit with steep declines. Its double-digit, credit-fueled, investment-driven economic growth could only be sustained for so long. The consumption-fueled economic growth China was counting on never materialized. Would the world feel a gentle ripple, or would it be engulfed in a giant tidal wave?
It is republished here with permission. In early Novemberfor example, the government lowered its official five-year annual GDP growth target to 6.
Feb 02, · The International Monetary Fund (IMF), the most prestigious international financial institution in the world, has rated China's ranking to number one economic superpower in the world -- . Mar 25, · While it may be true that the one-child policy averted immediate disaster, it was a bad government solution to a problem largely created by bad policies. Global Opposition to U.S. Surveillance and Drones, but Limited Harm to America’s Image Chapter 2: China’s Image. On balance, global views of China are positive, although ratings for the Asian power vary significantly across nations and regions.
But make no mistake: The Chinese consumer market, moreover, is in the midst of a transformation that offers tremendous new opportunities.
Three great forces are ushering in this transformation: Demand for premium goods and services that enhance a personal sense of well-being—such as healthy foods, education, and travel, rather than daily necessities—will accelerate.
Companies will need a new playbook to capture the coming wave of growth.
The strategies of the past will no longer be relevant. One is that incomes are rising. Rising incomes—and optimism that incomes will continue to rise—have kept consumer sentiment at its highest levels since — We believe such worries are exaggerated.
Respondents indicated that other factors would be more influential: Another reason for bullishness is that average consumers are spending more, and demographic trends and the expansion of e-commerce indicate that they will continue to spend more.
High-speed growth is occurring in upper-income brackets, among the younger generation, and in e-commerce channels, but consumption growth is decelerating among lower-income and older-generation consumers and in traditional retail channels.
The Rise of the Upper-Middle Class. China is entering a new era. The emerging-middle class and middle class will remain the biggest consumers in many categories, particularly such fast-moving consumer goods as personal-care products and detergents.
There are high concentrations of such households in more than 2, Chinese cities.
But the fastest growth will be in small cities. Of the 46 million additional upper-middle-class and affluent households that will emerge in China byhalf will likely be located outside the top cities.
We classify these cities as tier 4 or lower.
The Emergence of a New Generation. Young-generation Chinese spend more than their elders. Most Chinese older than 35 have lived through periods of instability and have experienced challenging economic circumstances.
They are known to be frugal. The young generation is more motivated to spend. Young-generation Chinese also tend to be more sophisticated consumers than those older than They are eight times more likely to be college graduates.
They travel overseas twice as much. And they are more brand conscious than older Chinese and U. The Growing Role of E-Commerce.Global Opposition to U.S.
Surveillance and Drones, but Limited Harm to America’s Image Chapter 2: China’s Image. On balance, global views of China are positive, although ratings for the Asian power vary significantly across nations and regions.
George Soros is a legendary hedge fund tycoon who managed client money in New York from to In , Soros shorted the British pound and reportedly made a profit of $1 billion. However, the Economic Policy Institute, a nonprofit, nonpartisan think tank in Washington, D.C., calculated that between and , the U.S.
lost million jobs as a result of increased. A slowdown in China's economic growth has reduced its demand for all commodities, which has hurt commodity-exporting countries, such as Australia, Brazil, Peru, Indonesia and South Africa – all major exporters to China.
The ensuing sharp decline in commodity prices threatens the global economy with deflationary pressures. There has been a great deal of anxiety about the motivations behind China’s going out policy and its possible international consequences.
Many view it as an expression of China’s international ambition and a strategy that threatens the existing international order; however, that is not the whole story. An equally important but often less understood issue is the role of China’s domestic. Manufacturing has played a leading role in the nation’s economic recovery, adding , jobs between February , when manufacturing employment fell to its lowest point, and October