Due to a series of events, a sense of international unrest has been created lately, but that has not changed the fact that China is still the number one choice for international expansions and outsourcing. This leads us to the obvious question; what are the factors that have kept China on top as the market of choice for international companies, in spite of everything that has been going on?
Irrespective of what is going on at an international level, the internal market has succeeded in sustaining its intranational economy, and quite stably so. If anything, the Chinese economy has already started growing once again.
China Recovers After Q1, 2020
Even in the middle of this ongoing international pandemic, which has shrunk the global economy as a whole, China has already recovered to a great extent. According to credible reports, their business economy has grown by 3.2% in Q2, 2020, after seeing a massive slump in Q1, 2020. It should be duly noted that not only is this a remarkable feat, but it’s also a unique one, as none of the other biggest economies of the world have even managed to grow back to their former strength at this point.
China Has Not Closed its Doors for International Investments
Although a few of the biggest economies in the world have closed off certain doors for certain Chinese businesses in their own nation, China itself has not taken that route. China company registration is still open, and you can find the company registration requirements and procedures on New Horizon’s official website. They are a leading global PEO with the necessary infrastructure and resources to help any international company set up in China with a local office, workforce and administration in no time at all. It is China’s continuing open-mindedness towards foreign businesses that has played the biggest role towards keeping it on top as the market of choice for international ventures.
The Number One Manufacturing Nation
According to the last official report, which was published back in 2018, 28.4% of all goods in the world were being manufactured in China. That is a remarkable number, especially once you consider the fact that the United States came in second with 16.6%, followed by Japan at 7.2% to form the top three manufacturing nations of the world. It means that not only was China ahead of the United States in its manufacturing contribution by more than 11%, but the nation was contributing more to the global manufacturing market than the second and third manufacturing nations combined.
Although no official reports have been published since, there is evidence to indicate that the Chinese manufacturing segment has only grown further since, making it obvious that its share of the global manufacturing market has also grown as a natural result of that. Admittedly, international politics and the epidemic has affected various Chinese industries in many ways, but a combination of the government’s friendly foreign investment policies and a solid manufacturing infrastructure has helped the nation maintain its position as the best foreign market for international investors, even in 2020.