China’s economy is thriving. Growth has slowed, yet growth rates are still higher than the majority of Western nations. The large population enables China to create powerful economic output. Manufacturing, agriculture and services have traditionally been major industries driving China’s economy. However, the transitioning economic environment is seeing a shift towards a heavier service reliant than present.
The traditional industries will not go away, but they will need to adapt. Manufacturing is losing focus on low cost goods to more specialised ones. Services are starting to become a more key area, and agriculture still employs over 300 million workers. These core areas will continue to be vital to China’s economy, but embracing new emerging industries will be key to propelling further growth.
Emerging Industries Fueling China’s Economy
Attention has started to focus on industries that utilize knowledge, innovation, technology and intricate design. Currently one industry that holds great potential is aerospace engineering. Presently, only a fraction of China’s manufacturing output comes from aerospace. Though the government has identified aerospace as a high priority, hoping to make it a global player.
Energy is another vital sector that should see further growth across China. The ability of the country should not be understated. Recent news emerged announcing a partnership between the French and Chinese to finance a British power plant. The Chinese investment is in the form through CGN, an already established major player in the domestic market. Clean energy is creating new opportunities. Air pollution is a major problem in certain cities such as Beijing. Reducing pollution and improving air quality should become a target for the government, and many companies may look to benefit.
Over the course of the last few years, education has become a crucial government priority. A transitioning economy includes a skilled workforce. Education will be fundamental in delivering this transition as smoothly as possible. Private universities are emerging, creating an option for companies to invest in their employees directly. The government has also committed to providing $250billion to the sector every year.
The ageing population has become a problem for China. Resulting in the healthcare industry becoming an interesting market. Healthcare will receive an investment of 7% of the nation’s GDP by the government. The available funds will go towards constructing urban hospitals and rural health centres. Private healthcare should also see a boom of sorts. A multi-billion-pound industry exists in private healthcare within the UK despite a tax funded NHS being freely accessible by all citizens. Though in China, healthcare isn’t completely free, creating a much greater opportunity for private companies to profit.
Only a few emerging industries were covered in this article, but many more exist. Snippets were highlighted to display the sheer diversity where potential waits. Select industries such as healthcare are already well-established, but future trends are expected to fuel even further growth. With China’s economy in the midst of a transitioning period, the uncertainty is creating plenty of excitement for new innovative industries to emerge.