Individuals at the Baltic Business Research Center have conducted an analysis of China. Hubert Fromlet has written and edited the analysis about the country´s concern and opportunities now and in the future.
Approximately 25 Chinese experts from Asia, North America and Europe participated in the tenth survey, which focused on short-and long-term development in China.
Investment continues to be the driving force for China's economic development. Although China's market has been invaded by foreign investors and companies, there are some causes for concern in both short and long term. In the past, many advantages of Chinas economy have been highlighted in the media, and now other elements that are important to know about before entering the Chinese market are analyzed.
Hubert Fromlet writes that that for the short term goals, they must review the development of banks in the country. The banks control a lot and affect the housing market and investments. Inflation and exchange rate policy are two other factors that need to be reviewed in the near future; what they can do to make these factors more stable than they are today.
For the long term, some other important areas need improvement. This is primarily about the environment which perhaps is the biggest threat for the future.
The banking system is also mentioned here as well as the social security system. Last but not least, we found that demography and energy are two areas that may cause problems in the future.
The continued recovery is driven by several factors, but the three most important are investments, private consumption and net exports.
In percentage analysis, investment will account for 49 percent, private consumption will account for 44 percent and net exports will account for 7 percent. The main source for a continued successful recovery in the country is thus investment.
The GDP forecast average is 9.4 percent in 2010 and 8.9 percent in 2011.
Cecilia Helland