Market Information

China is a booming market for international investors

The automotive sector is one of the core industries in the Chinese economy. Since 2008 China’s automotive industry has been the largest in the world measured by automobile unit production. In 2014, total vehicles production in China was accounting for 26% of global automotive production. Regarding to McKinsey & Company China’s auto market will tenfold between 2005 and 2030.

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Especially sales of small and medium sized passenger cars are booming, due to a growing demand from the so-called second and third tier cities. And there is even more potential for the future as the average car density per thousand inhabitants in China is still a mere twelve units.

In the past few years the international supplier industry has positioned itself well in China as a result of being technology leaders. Similar components and parts produced by Chinese manufacturers are low priced but often show critical quality defects. Future business opportunities arise from increasingly strict environment and safety regulations in China.

Key region

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China is becoming a key region of Asia with two-figure growth forecast for all the important sectors of the economy. It is continuing to pursue a free-market policy. The conditions for foreign companies are improving steadily - more legal certainty, admission to the WTO, tariff reductions, privileges for foreign investors and liberalisation of trade.

Focus on Beijing

Beijing is amongst the most developed cities in China, with tertiary industry accounting for 73.2% of its Gross Domestic Product (GDP); it was the first post industrial city in mainland China. From 2004 to 2012 the economy tripled in size. In 2013 Bejing's economy grew with a annual rate of 7.7%. In the same year no other city in the world had more Fortune Global 500 headquarters than Bejing.

Also in 2013, Bejing's nominal GDP reached 1.95 trillion RMB. Its per capita GDP was 93.13 RMB. In 2009, the nominal GDP has been 1.19 trillion RMB, which is a growth of 63.9% over four years.