As the new Chinese management has been gearing up to double the country’s 2010 GDP and per capita profits by the year 2020, a stronger China and richer Chinese people could also help to encourage the lackluster global market, reports Xinhua news agency.
Evaluate with the world’s major economies such as the US and some European nations, China’s current spending rate is relatively low.
If the country’s newly planned income-doubling method could be realized as programmed, it means that the Chinese people would have more funds in their pockets to spend, and their claim for products and services from other parts of the world would also be extended accordingly.
HSBC has guess just that the yearly growth rate of US exports to China could be increase to 10.4 percent over the next three years, and would further increase to 12 percent between 2016 to 2020. Britain’s exports to China could also see a extensive rise.
As the requirement is growing, more and more Chinese choose to go in foreign countries for both touring and buying brand name products. Now a day it has already been quite common to see crowds of Chinese customers going on shopping spree for products of international brands in department stores and outlets worldwide.
According to the World Tourism Organization, the Chinese spent as high as US$72.6 billion previous year outside China, ranking the third in the world.
China’s rising demand would also help to increase its imports from other countries and regions, thus making the nation’s trade more balanced.
Meanwhile, as the Chinese economy go on to grow, home-grown Chinese enterprises would also have more capital and capacity for overseas investment. That would be excellent news for overseas industries that are short of funds and markets.
With the rising cost of labour, Chinese firms are enforced to move their production lines to countries and areas in Southeast Asia and Africa while maintaining their designing and research sectors at home. And the countries that harbor Chinese investment could accept more capital, technologies and job opportunities as part of China’s growth bonus.
The Chinese companies would also work to sponsor their development by following a capital, technology and service intensive pattern, so they can better give out costumers worldwide with more cost-effective, environmental friendly and energy saving products.
Daniel Rosen, visiting fellow at the Peterson Institute for International Economics, has said recently that China’s global direct investment assets would increase from US$400 billion today to US$1 trillion or even US$2 trillion by 2020.
It is predictable that as the Chinese government is resolute to boost development of an advanced manufacturing industry and increase speed transition of traditional industries, the global competitiveness of Chinese companies would definitely be more improved.
As well, the Chinese currency is also moving fast along its path toward internationalization.
As the world’s second largest economy and trading power, the amount of RMB that was used in cross-border trade surged from an the same of 506.3 billion dollars in 2010 to 2.08 trillion last year, making the currency the world’s third-biggest trade conclusion currency.
In the next decade, it is probable that China could overtake the United States to become the world’s top trading power, and the Chinese RMB could be used as the settlement currency on an even more expanded scale.
It has also been more and more apparent that the Chinese currency has been taken as a financial asset. In Hong Kong, an RMB off-shore market has seen quick progress, while London is also working to assemble an international market center for the RMB.
In the long run, an internationalized RMB can promote the diversification of global reserve system that is currently dominated by a volatile U.S. dollar.
With targets being set, China will vigorously follow a balanced, coordinated and sustainable economic growth pattern. As China restructures its development model and enriches its people, the country’s renewed economic strength shall help nurture success across the whole world.
