Q&A

Domestic consumption, particularly among the middle class, is expected to be a major factor in the US$4 trillion of growth forecasted for the Chinese economy over the next decade. Rising wage costs in China may be prompting companies to relocate their manufacturing operations elsewhere, but few are leaving the country entirely. This is because opportunities for growth in the domestic consumer market are simply too lucrative to pass up.

By 2020, China will have surpassed the United States as the world’s biggest economy, with an estimated gross domestic product of RMB 100 trillion. Long before then, by 2016, China is predicted to become the world’s largest retail market, at a value of around US$ 4.2 trillion.