China and the U.S. are two markets that entrepreneurs like to evaluate. The United States has been, and remains, the world's largest product manufacturer. With the United States success over the years, it is difficult to imagine that any other country would be the number one country, but now it is about to happen.
China is a market that has received much focus in the media recently, partly because many companies establish business in the country and partly because prices for both labor and commodity production are extremely low compared to other countries.
China is now becoming the world's largest product manufacturer, at least according to a report from the OECD economic organization.
According to the report, China may have passed the U.S. as the world's largest product manufacturer of goods in 5-7 years. The country's recovery from the crisis has contributed to this outcome. With the help of great government supporting measures, China is now in the lead in terms of economic recovery. Today, China is the world's second largest economy after the United States, but the world's largest exporter.
The finances are strong and the country´s national debt is estimated to increase by only 3 percent of GDP in 2010, which is a clear improvement from 2008 when the national debt stood at a massive 21 percent of GDP. These facts are based on an average of 100 percent in OECD countries in total this year.
However, it should be added that more factors need to be improved in the country. OECD's advice to the Chinese government is therefore to continue to contribute money in the welfare system, which will be crucial for China's future. In the current situation they need better healthcare, education and pensions.
Cecilia Helland