Grow­ing op­por­tu­ni­ties for UK com­pa­nies in China in 2016

The Pak Banker - - 6BUSINESS -

BEI­JING: China's Na­tional Bureau of Sta­tis­tics re­leased GDP fig­ures for 2015, high­light­ing that the econ­omy grew by 6.9 per­cent, com­pared with 7.3 per­cent in 2014 and against the of­fi­cial tar­get of 7 per­cent. In ab­so­lute terms, a growth rate of 6.9 per­cent added over $700 bil­lion to China's econ­omy last year - that's equiv­a­lent to a G20 sized econ­omy (e.g. the en­tire econ­omy of Saudi Ara­bia or Switzer­land).

The 2015 data re­flects the grad­ual slow­down as China con­tin­ues its long-term tran­si­tion away from a State-led in­vest­ment and ex­port-led man­u­fac­tur­ing econ­omy to be­ing more de­pen­dent on ser­vice sec­tors and do­mes­tic con­sump­tion (which now ac­count for 50.5 per­cent of the econ­omy, up from 48.5 per­cent in 2014). Man­ag­ing this tran­si­tion is com­plex and at times chal­leng­ing.

Like any eco­nomic data, it is im­por­tant to look at the themes be­hind the head­line fig­ures. China is also a vast coun­try and China-Bri­tain Busi­ness Coun­cil (CBBC) sees sub­stan­tial dif­fer­ences in trends across dif­fer­ent sec­tors and re­gions. In some re­gions where more tra­di­tional heavy in­dus­tries are prom­i­nent there are nat­u­rally lower growth rates, whilst in other re­gions that are fo­cus­ing on newer in­dus­tries and ser­vice sec­tors, growth rates are higher than the na­tional av­er­age. Some tra­di­tional sec­tors face chal­lenges, other in­dus­tries such as ser­vice sec­tors and in­no­va­tion-led sec­tors are flour­ish­ing, and UK ex­per­tise is greatly sought af­ter. Stephen Phillips, CBBC's chief ex­ec­u­tive, said: "As this ad­just­ment takes place, in some ways its presents Bri­tish com­pa­nies with their best op­por­tu­ni­ties yet in China as new sec­tors and re­gions open up.

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