Companies to Sell to China as it Enters High Income List
According to a Fed 15 report from the Morgan Stanley investment bank, China is expected to become a high-income and 1st world nation by 2027. The report highlights the unlikeliness that the country has to linger in the middle-income bracket. In the next 10 years it is likely that a priority for all B2C companies will be to sell to China.
Analysts hypothesize that China’s re-orientation to quality manufacturing, especially in the consumer electronics industry, and its rising domestic consumption will increase the per capital income from $8,100 in 2017 to above $12,500 by 2027. The high-income threshold set by the World Bank is a per-capita income of $12,000 per year. Indeed, China is shifting towards consumption and with talk and pressure on China to open it’s market to the world, foreign companies will start looking to sell to China at an exponential pace. Selling to China has always been at the top of B2C companies’ priorities. With a population of over 1.4 Billion, more high-income individuals will live in China than out of China by 2027. Companies are on the lookout for updates.
In regards to predictions of China being slowed by a bank crisis, Morgan Stanley stated China has more than enough momentum to avoid a plateauing of it’s economy as well as strong external factors including humongous foreign currency reserves. Since 2010, China’s economy has been getting bigger, but growing slower with every year losing a fraction of a percentage in growth rate, The GDP growth rate in 2016 was around 6.7% compared to a 7% growth rate in 2015. While these percentages show a slower growth it’s important to realize that 6.7% increase over the 2015 figures represents the highest figure in currency unit increase ever for China.[/vc_column_text][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row]