Roughly two centuries ago the Wild West (USA) was the land of infinite possibilities and it offered great opportunity for a smart businessman. Today China can be viewed as the Wild East, a new land of vast riches and potential profits.
China is the fourth largest country in the world, but the number one population wise (1,320,000,000) so by default the potential of labour force is enormous and in time with the right decisions China can become the leader in global market. Although China is ruled by a communist party and its market policy is Central Planned due to some smart decisions by party leaders in the last few years, the GDP of China is steadily increasing. Well in 2009 the increase has been slowed down by the global crisis, but the domestic market decreased the effect of the crisis. In 2009 the inflation is decreasing.
Due to the large territory of China there are different living standards between urban and rural population. As such the labour force in China is very cheap and there is no legal minimum wage, so many foreign businesses have relocated their manufacturing to China and invested their capital in local Chinese enterprises. Why people invest their money in China? There is no secret that Chinese domestic market is a big, growing and very profitable market and with GDP rising the market’ profitability will also increase. So it is very wise to gain an early foothold in the Chinese market.
The main Chinese exports are manufactured goods which are traded in the whole world. Although exports have decreased in 2009 it is projected that in 2010 the export level will rise again.
And last but not least – China is a beautiful country with an ancient and exciting history. You can visit one of the world’s greatest wonders – The Great Wall of China and marvel at its greatness. And let’s not forget the cuisine of China which is divided in a number of regional tastes.
Of course you will not find any cowboys roaming around, but still China is the land of unlimited opportunities as once the Wild West was.
Matthew E. Brock is a writer for International Trade suggestions site. Check out the smart and valuable information. Subscribe to our trade newsletter for more tips and suggestions.