China

CHINA

Introduction

We choose this country because China is the world's second largest economy by nominal GDP.

Overall situation

It is the world's fastest-growing major economy, with growth rates averaging 10% over the past 30 years.

Macroeconomics

In 2013, China’s GDP was US$9.240 trillion. In China, the growth rate in GDP measures the change in the seasonally adjusted value of the goods and services produced by the Chinese economy during the quarter. China's economy is the second largest in the world after that of the United States. During the past 30 years China's economy has changed from a centrally planned system that was largely closed to international trade to a more market-oriented that has a rapidly growing private sector. A major component supporting China's rapid economic growth has been exports growth.

Microeconomics

DEMAND: Chinese consumers demonstrate different shopping patterns depending on their wealth, age, and location. Though many Chinese consumers demand less expensive products, a small but significant proportion is willing to pay a premium for higher quality. The biggest change in Chinese consumer behavior comes from the young generation’s rising wealth and increasingly Westernized lifestyle. As time goes on, the demand for higher-quality products, particularly among younger generations, will accelerate and present huge opportunities for foreign brands.

Some of the products that the costumers buy are toys, convenience foods, pet products, personal care products, wine and whisky, snack foods, auto products. The younger generation of parents is more willing than older generations to pay for toys. The young generation spends significantly less time cooking than their parents and instead turns to restaurants and convenience foods, such as microwave meals and instant noodles. And the Wine and whisky have broken traditional alcohol preferences in China, as the young generation seeks alternatives to strong traditional spirits, such as baijiu (see Opportunities in China’s Alcoholic Beverage Market).

SUPPLY:

Rank Fortune 500

rank Name Headquarters 2014 revenue

(billions US$)[1] 2014 net profit

(billions US$)[1] Industry

1 3 Sinopec

Beijing

457.201 8.932 Oil

2 4 China National Petroleum

Beijing 432.007 18.504 Oil

3 7 State Grid Corporation

Beijing 333.386 7.982 Utilities

4 25 Industrial and Commercial Bank of China

Beijing 148.802 42.718 Banking

5 38 China Construction Bank

Beijing 125.397 34.912 Banking

6 47 Agricultural Bank of China

Beijing 115.392 27.050 Banking

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