Growth on a massive scale.
The People's Republic of China clocked a growth rate of 11.9 percent in the second quarter of 2007, the fastest pace in more than a decade. This blistering rate continues despite the central government’s efforts to rein in the economic expansion. China is on track to overtake Germany as the world’s third largest economy.
The drivers include post-WTO competition in a range of industries and markets, and financial reforms allowing increased international flows of capital. In addition to being the "workshop to the world," China has experienced the stunning rise of the world's largest and fastest growing middle class in history. The resulting increases in consumer incomes mean that China is becoming a highly alluring domestic market in a variety of sectors from booming consumer products and retail sales, to telecommunications, finance and insurance.
- By 2009, 105 million households are expected to have $3,000 or more in annual disposable income - a tripling of the size of the consumer class in three years.
- In 2006, China overtook Japan to become the world's second-largest auto market as total vehicle sales came to 7.2 million units, up 25.1% year-on-year.
- China is now the world’s third largest buyer of luxury consumer goods, accounting for 12% of global demand.
- China's electronic and information industry sales grew 23.7% to $600 billion in 2006 and $747 billion in 2007.
- China is the second-highest investor in research and development behind only the US, with R&D growth rates that exceed those of China’s overall economy.
- Semiconductor shipments in China are set to accelerate to $51.7 billion in 2007, up 20% from $43 billion in 2006, on top of 15% revenue growth in 2006.
- By 2030, two-thirds of China's 1.3 billion people will live in cities, and the spending power of these urban, Internet-connected residents is already impressive.
- China's infrastructure expansion is causing shortages of commodities worldwide, from coal and concrete to steel and heavy tractor tires.
- Development is not without its costs: China has 16 of the world's 20 most polluted cities, and environmental awareness is sweeping China's emerging consumer class.
