At the tail end of 2014, China quietly surpassed the USA as the biggest economy in the world. The giant country, with a population of 1.4 billion has seen a huge rise over the last decade. Its strong period of growth can be attributed to their stock capital. The sheer number of factories and manufacturing units is overwhelming. Most of this took place in the period between 1978 and now. In 1978, China reformed its entire economic system. It embraced a free market economy and allowed capital to flow freely. It open up the entire system away from a communist tradition.
Although China would not yet be considered a ‘superpower’ it certainly is rising. Its market rests strongly on an industrial economy. It is not yet a pioneering technology in the way that USA, UK or Japan are. Nevertheless, it does now have the biggest economy in the world. That makes it a major player on this planet. As such, foreign investment is flooding towards to the vast country.
The UK, who invested over £6 billion in China over the last five years, has made a grand claim. That current investment will be quadrupled in the same period. By 2020, the UK will invest over £26 billion in the country. Where exactly that investment will go, we are unsure. However, looking at the current state of the economy and investment, we can make an educated guess. China has grown large and powerful in the manufacturing industry. However, like its large neighbor, Russia, it has its eyes firmly on the future.
The next period of investment looks to fall in the energy sector. China has been slow to adopt climate control sanctions throughout its country. It is the single biggest (current) contributor to carbon emissions on the planet. However, at the end of 2014, it pledged to hit a peak emissions output and begin to reign it in. That means investing in new industry. It means embracing new concepts and technology. Much of the funding will come from foreign investment.
The country will also begin to move away from traditional industry and into administration. The move has already begun but will increase significantly over the next five years. If you’ve ever asked, “what does a business administration professional make as a salary?” you’re not the only one. China is realising that the future is in business admin.
China has also been notoriously strict with its media access. As modern nations go, it is still very secretive and has control over much of the media. This is also slowly changing and it is opening up its media and entertainment channels. This gives it a more universal appeal for foreign investment. UK are not the only nation to increase investment. Hong Kong is currently its largest contributor and looks set to increase. Japan, Singapore, USA and Germany are also setting course for further investment.
China has proved itself as a major player in the world of industrialisation. Now it looks to take on board foreign investment (and invest itself in other nations) to move forward. The biggest leaps will come in the energy sector, the business admin sector and the media.